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Offshore market conditions put Boskalis profits under pressure


Royal Boskalis Westminster (Boskalis) reported a net profit of $88.12m in the first half of 2017 compared to $173.08m in first half 2016, the company announced Thursday.

Revenue in the first half of the year declined by 7% compared to the first half of last year to $1.27bn compared to $1.37bn in the same period a year ago.

Both revenue and fleet utilisation increased at the Dredging & Inland Infra segment, with large projects in execution in Brazil, Indonesia and Oman contributing to the rise. The result was virtually stable with continued margin pressure.

Revenue and results for its offshore energy business declined, due in part to poor market conditions in the oil and gas industry. In addition there are no major offshore wind farm projects in progress this year, whereas the construction of two sizable wind farms contributed to revenue and the result last year. The VBMS cable-laying activities had a good first half of the year, making a significant contribution to the division's results.

Revenue and results were also under pressure at towage & salvage, partly due to the deconsolidation of the European harbour towage services but also as a result of a very quiet first half of the year for salvage. 

The orderbook, excluding the company share in the orderbook of joint ventures and associated companies, increased to $3.808bn at the end of the first half of the year, versus $3.432bn at end 2016.  

"Developments in the first half of the year were in line with expectations. The results of the traditional dredging activities were stable with higher fleet utilisation rates. The outlook is moderately positive given the volume of work in the market and an increase in the orderbook,” commented Boskalis ceo Peter Berdowski.

“As expected, the situation in the offshore market resulted in a further drop in the result. We do not foresee a quick recovery in the offshore market, as previously stated, and have adjusted our fleet and organization to this new reality.

 “The weak offshore market also presents clear opportunities for us to strengthen the company, as evidenced by the recently announced acquisition of Gardline. This acquisition will specifically help fulfil our strategic ambition to build a position in offshore survey. Gardline is a key player in the survey market with years of experience and a strong reputation,” he added.

Source: SMN

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