Date: May 9, 2007
During the General Meeting of Shareholders held today, dredging contractor Royal Boskalis Westminster nv announced investments in equipment amounting to 450 million. The equipment comprises a new mega trailing suction hopper dredger with a capacity of 40,000 m³ as a replacement for the W.D. Fairway, as well as two large trailing suction hopper dredgers, each with a capacity of 12,000 m³.
Replacement of W.D. Fairway by 40,000 m³ megahopper
Following on from the recent report about the collision involving the hopper W.D. Fairway in China, CEO Peter Berdowski announced that current information indicates that there is a constructive total loss. Given this, Boskalis has decided to build a new megahopper with a capacity of 40,000 m³. The company has signed a Letter of Intent to that effect with the shipyard IHC Holland. The ship will be completed in the spring of 2011. This megahopper will strengthen the Boskalis market position in the segment of large-scale dredging projects.
A constructive total loss of the W.D. Fairway means that Boskalis will receive insurance payments amounting to a total of more than 165 million. On balance, the financial settlement will lead to a positive result of approximately 85 million before taxation.
Construction of two large hoppers with a capacity of 12,000 m³
Boskalis has also signed a Letter of Intent with the shipyard IHC Holland for the construction of two large hoppers with a capacity of 12,000 m³. The ships will be completed in 2009 and 2011 respectively. These hoppers are part of the new building program announced previously, providing new capacity in response to increasing market demand.
Good prospects for 2007
In the early months of the year, the amount of acquired orders matched turnover, and the orderbook therefore remained stable at approximately 2.5 billion. Boskalis expects this year to see an increase in turnover and, despite the loss of the W.D. Fairway, net profit (leaving aside the financial settlement of the damage), good equipment utilization, good margins and higher investments. The chairman was not yet in a position to make any firm announcement about the expected net profit for 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
This press release can also be found on our website www.boskalis.com.
For IR matters contact our Director of Investor Relations & Corporate Communications.
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