Boskalis Posts 2016 Results: Year of Extreme Transition

Boskalis has just announced that they achieved an operating net profit of EUR 276 million in 2016.

Including non-cash impairment charges of EUR 840 million after tax the company reported a net loss of EUR 564 million (2015: net profit of EUR 440 million).

Revenue declined by 20 per cent to EUR 2.60 billion (2015: EUR 3.24 billion). Adjusted for consolidation, deconsolidation and currency effects, revenue was down 26 per cent, Boskalis said.

EBITDA amounted to EUR 660 million and the operating result was EUR 385 million, both adjusted for impairment charges (2015 EBITDA: EUR 885 million and operating result: EUR 577 million).

Peter Berdowski, CEO of Boskalis, said: “After the best two years in Boskalis’ history, we found ourselves over the course of 2016 increasingly faced with the reality of the current market conditions, particularly in the offshore market. In that sense 2016 was a year of extreme transition for us, from economic high tide to low tide.”

“The analyses carried out for our new business plan point out that a rapid recovery in the offshore market is not expected. And so where necessary we are adapting the organization to this new reality with further improvements in efficiency and effectiveness.”

“But we are also expressly looking at opportunities that a market such as this can offer us for strengthening the company for the medium term, when the offshore market will start picking up again. And so the period ahead presents us with a fascinating, challenging mix of sharpening up and expansion,” said Mr Berdowski.

Highlights of 2016

• Revenue: EUR 2.60 billion;
• EBITDA: EUR 660 million;
• Operating net profit: EUR 276 million;
• Impairment charges: EUR 840 million;
• Order book: EUR 2.92 billion;
• Proposed dividend: EUR 1.00 per share.

The market conditions combined with the outlook described gave rise in 2016 to the fleet rationalization project and resulted in the impairment of vessels and goodwill, particularly in the service-related part of the offshore oil and gas activities, the company said.

A cost-reduction program has now also been launched, aimed at cutting head-office costs.

Capital expenditure in 2017 is expected to be around EUR 250 million, excluding acquisitions, and will be financed from the company’s own cash flow.