Dredging contractor Royal Boskalis Westminster nv announced that it has, in line with expectations, made a modest net profit of € 7.4 million ($9.13 million). Boskalis is making rapid progress with the organisational adjustments announced in March of this year.
The measures primarily involve sharper purchasing, rationalisation of equipment and the organization, as well as better portfolio management of the home markets. They involve approximately 450 jobs worldwide. The first phase has now been completed. The reorganization expenses have led to an additional pressure of € 10.7 million before taxation on the results for the first half year.
Rob van Gelder, Boskalis CEO said, "The results over the last six months are, as we expected, modest. However, we have maintained our good market position and that's important in the present circumstances. I am satisfied with the rapid progress of the organisational adjustments, crucial in the fight for market position."
Boskalis' turnover was € 412 million and new orders were acquired amounting to € 426 million, keeping the orderbook stable at € 1.1 billion. The operational results were under pressure and fleet utilisation was moderate. The net investments in equipment amounted to € 66 million and the financial position remained sound with solvency at 42 per cent.
The company's Turnover was € 412 million in the first half year, as compared to € 486 million in the first six months of 2003. Turnover fell both inside and outside Europe, with the exception of the Middle East.
In the home markets, turnover was € 183 million as compared to € 297 million in the first half of 2003, when work was still in progress on two large assignments in Nigeria and Sweden. Market demand and turnover were both down on last year in all home markets.
On the international projects market, turnover rose to € 207 million (first half 2003: € 148 million), mainly because of a larger contribution to turnover from Archirodon in the Middle East. The share in turnover of Archirodon increased from € 21 million to € 57 million. The positive development of the activities and results of this company, which is included in consolidation on a proportional basis, has continued over the past six months.
In the specialist niche markets, less work was conducted for the offshore industry. Turnover was € 22 million (first half 2003: € 41 million). The amount of orders acquired in the first six months of 2004 was € 426 million (first half 2003: € 511 million), with a considerable proportion coming from the Middle East.
The orderbook remained stable at € 1,138 million (year-end 2003: € 1,124 million). Here, it is assumed that there will be no turnover in the second half of the year from the stagnating land reclamation work in Singapore. This work accounts for € 340 million in the orderbook (year-end 2003: € 361 million). The share in the orderbook accounted for by Archirodon increased from € 182 million at year-end 2003 to € 214 million.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were € 54.3 million (first half 2003: € 74.1 million). Due to lower turnover and fleet utilisation, pressure on margins and reorganisation costs of € 10.7 million, the operating result fell to € 7.9 million (first half 2003: € 38.9 million).
The fall in market demand meant that utilisation of the equipment was moderate in the first half of 2004. The lower utilisation of the large trailing suction hopper dredgers in particular meant that the average utilisation of the hopper fleet fell to 29 weeks on an annual basis (first half 2003: 35 weeks). On the other hand, utilisation of the cutter fleet was better, particularly as result of the deployment of the larger cutter-suction dredgers on a few large projects: 31 weeks on an annual basis, as compared to 23 weeks in the first half of 2003.
Depreciation increased to € 44.7 million (first half<