Boskalis Third Quarter Results as Predicted

Royal Boskalis Westminster N.V. (Boskalis) saw a slight increase in revenue in the third quarter of 2017 compared to the quarterly average reported for the first half the year.

Compared to the third quarter of last year both revenue and the result were considerably lower, in line with expectations, reported the company.

With regard to the 2017 full year Boskalis announced that it expects net profit in the second half, excluding restructuring charges of approximately EUR 15 million, to be comparable to the net profit of EUR 75 million realized in the first half of the year.

Compared to end-June the order book declined by 4% to EUR 3.1 billion. Approximately EUR 0.5 billion of new worked was acquired in the third quarter. These contracts will be added to the order book at the financial close in 2018.

Furthermore at the end of October Boskalis acquired the Borssele Beta export cables installation contract (value: EUR 70 million) as well a multi-year Dredging maintenance contract with a total value in excess of EUR 260 million.

Operational Developments

The third quarter at Dredging & Inland Infra was busier than the first half of the year. Considering conditions in the market there was good utilization of the hopper fleet and quarterly revenue was slightly higher than the quarterly average reported for the first half of the year. The results from ongoing dredging projects were mediocre and there was a positive contribution from projects technically completed previously.

The projects acquired in the third quarter were mainly port-related, in countries including the Netherlands, Sweden and Panama. On balance, there was a slight decrease in the order book at Dredging & Inland Infra compared to mid-2017.

Highlights of the Q3 are available here.