Revenues rise at Boskalis

Dutch dredging and maritime infrastructure group Boskalis Westminster reported revenues of €2.8 billion for 2011, up from €2.7 billion the previous year, but said net profit had slipped by €57 million year-on-year to €254 million.

The company said net profit for 2010 had been boosted by an exceptional pre-tax gain of €33.6 million, skewing the year-on-year comparison. However, Boskalis also said that increased uncertainties in international markets had also resulted in continued hesitance among clients with regard to investment decisions, putting pressure on margins.

As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) declined to €591 million in 2011, compared to €622 million in 2010, and the company's operating result also slipped to €354 million last year, from €402 million the previous year.

Overall, the company's order book increased to €3.5 billion at the end of 2011, compared to €3.2 billion at the end of 2010.

Boskalis CEO Peter Berdowski said 2011 had been a turbulent year, characterised by continued pressure on margins and volume, and increased competition for new projects.

"Market conditions are expected to remain challenging in 2012. The medium term presents a mixed picture for the markets in which we operate. On the one hand we see - especially in Europe - continued reservations about investing on the part of governments.

"On the other hand we are positive with regard to the market developments in South America, West Africa and Australasia. We feel particularly positive about the offshore market, where we expect a great deal of work as from 2013," he said.

Uncertainty

The company said demand for the construction of new oil and liquid natural gas import/export terminals was growing, boosting offshore business potential. However, it added that the uncertainty of the international situation was such that it was "currently unable to provide quantitative guidance" for 2012.

It forecast, however, it would not be able to match the 2011 result. "Based on current insights we do not foresee a materially different market environment in 2012 relative to 2011, but prospects for the medium term are more positive," Boskalis said.