Press release

Date: March 15, 2007

Highlights 2006

  • Record turnover € 1,354 million (+ 17%), record profit € 116.6 million (+86%)
  • Continued expansion of orderbook to more than € 2.5 billion
  • Higher fleet utilization, rising margins
  • Profit per share € 4.08, dividend per share € 2.04

Outlook

  • 2007: increase in turnover, good equipment utilization, good margins
  • Investment activity at a high level

Royal Boskalis Westminster nv achieved a net profit of € 116.6 million in 2006, which is 86% more than in 2005. Last year was closed with a 17% higher record turnover of € 1,354 million. Boskalis continued its selective contracting policy and benefited from market growth in the more traditional market areas such as Europe, the Middle East and Australia/Asia, as well as opportunities in emerging markets such as Brazil, Russia, India and China. The orderbook reached a new historical high of more than € 2.5 billion.

Peter Berdowski, Boskalis CEO:
"We have an excellent year behind us and our expectations for the years ahead are also good. Our vessels are almost fully utilized and we are focusing on a broad market spread and good margins. The challenge now will be to pick out the best projects."

Positive market developments in 2006
The volume of work on the international dredging market reached unprecedented heights, with many large projects in the pipeline. The company is following a policy based on a broad market spread, targeting both existing and new markets. Even more than previously, this means that Boskalis is making deliberate choices about the deployment of people and equipment. This selective contracting policy also produced good results in 2006.

The high market demand is primarily a feature of the markets driven by energy and raw materials. The core activity of dredging and earthmoving, and the partners Archirodon and Lamnalco, generated a strong flow of new contracts. The selective contracting policy made it possible to take appealing opportunities in the Middle East and Australia, and to respond well to new developments in Brazil, Russia, India and China.

But the prospects for Europe are also favorable. Preparations are underway for a range of extensions to container ports, particularly in Germany, the United Kingdom, the Netherlands, France and Spain. These projects are expected to generate a lot of work in the years to come.

Dividend
A proposal will be submitted to the Annual General Meeting of Shareholders on May 9, 2007 for a dividend, in line with the company's dividend policy, of € 2.04 per share (pay-out 50%), to be paid in cash. The dividend will be payable from May 21, 2007 on.

Prospects for the coming year
A further increase in turnover and continued good utilization rates for the equipment are expected for 2007. In general, margins will be good. It is not yet possible to make firm statements about the results expected for 2007.

The investment activity will be at a high level, primarily focused on the accelerated increase of hopper and cutter capacity to capture the growing market demand.

Share split
The Boskalis share price has more than doubled in the last two years. In order to facilitate trading, a proposal will therefore be submitted to the Annual General Meeting of Shareholders on May 9, 2007 to split the share in a ratio of 1:3.

Key figures (in millions of euros) 2006   2005
             
Turnover     1,354     1,156
Operating result     150.3     82.3
Net profit     116.6     62.7
Profit per share (in euros)     4.08     2.21

 

  December 31, 2006   December 31, 2005
             
Orderbook   2,543     2,427
Solvency   39.4%     41.3%

 

For more details and explanatory notes please see the following pages.

Financial agenda 2007  
early April Publication annual report 2006
May 9 Annual General Meeting of Shareholders
May 11 Share goes ex-dividend
May 15 Record date for dividend entitlement
May 21 Dividend for 2006 becomes payable
August 23 Announcement half year results 2007

 

Royal Boskalis Westminster nv is an international group with a leading position in the world market for dredging services. Its core activities are the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. The company holds important home market positions in and outside of Europe and targets all market segments in the dredging industry. It also has positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco). Boskalis has a versatile fleet of over 300 units and operates in over 50 countries across five continents. Including its share in partnerships, Boskalis has approximately 8,000 employees.

For further information please contact:

Roel Berends - Corporate Relations
Telephone: +31 (0)78 69 69 314 / +31 (0)6 2001 0232
Fax: +31 (0)78 69 69 805
E-mail: r.t.berends@boskalis.nl

This press release can also be found on our website www.boskalis.com.

 

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