Royal Boskalis Westminster N.V. (Boskalis) has released their first half-year results and have reported a good operational 2020 so far, considering the circumstances.
The operating result increased sharply compared to last year with revenue at virtually the same level. Furthermore, Boskalis’ financial position remains strong and the net cash position has improved significantly since the end of 2019.
Nevertheless, the outbreak of COVID-19 has of course also impacted Boskalis. Operationally it is was very challenging, particularly keeping Dredging projects outside of Europe going due to prolonged travel restrictions and strict quarantine measures.
At the Offshore Energy division the services activities were particularly affected by the unexpected significant drop in the oil price, resulting in a lack of demand in parts of the offshore market.
At the end of the first half-year Boskalis undertook, in light of the COVID-19 pandemic and the sharp drop in the oil price, a critical review of the valuation of its vessels and balance sheet assets across the board. This has resulted in a virtually exclusively non-cash extraordinary charge of EUR 147.8 million. This charge mainly consists of an impairment on goodwill and vessels in two joint ventures as well as of a limited number of our old own vessels earmarked for scrapping.
Revenue amounted to EUR 1.26 billion in the first half of the year, virtually the same as last year (H1 2019: EUR 1.27 billion).
Boskalis’ financial position remains strong. At 30 June 2020 Boskalis was net debt-free with a net cash position of EUR 190 million, compared to a net cash position of EUR 26 million at the end of 2019. Furthermore, the solvency ratio remains high at 51%.
KEY FIGURES FIRST HALF YEAR 2020
- Revenue: EUR 1.3 billion
- EBITDA: EUR 204 million
- Operating result: EUR 72 million
- Net operating profit: EUR 48 million
- Extraordinary charges: EUR 148 million
- Order book: EUR 4.7 billion
- Positive net cash position of EUR 190 million
OUTLOOK 2020
- Dredging: stable at current level
- Offshore Energy contracting: good year for Seabed Intervention and Subsea Cables
- Offshore Energy services: growth in Survey due to addition of Horizon
- Salvage: good year following strong first half year
- 2020 EBITDA outlook: expected to match 2019 EBITDA level
- Resumption of share buyback program
Read the full first half year report here.
