Press release

Date: 23 August, 2007

Headlines for first half of 2007

  • Net profit more than doubled: € 78.8 million
  • Record turnover of € 756 million: +36%
  • Orderbook at historical high: € 2.6 billion
  • Margins driven by selective market approach
  • Structurally high market demand, with broad spread across the world
  • Fleet expansion on schedule

Outlook for 2007

  • Increase in net profit of at least 40% compared with 2006 (€ 116.6 million)
  • Higher turnover, high equipment utilization rate, good margins
  • Capital expenditure approximately € 200 million

Longer-term outlook

  • A healthy balance between supply and demand

In the first half year of 2007, Royal Boskalis Westminster nv more than doubled its net profit to € 78.8 million (first half year of 2006: € 37.8 million). There was a favorable effect on the result of approximately € 20 million (first half year of 2006: € 6 million), generated by a number of items of extraordinary income as well as a lower tax burden.

Boskalis benefited from continuing strong demand in the international dredging market, with good margins and robust equipment utilization, particularly of the large hoppers. Boskalis also reaped the fruits of its selective contracting strategy, so that a number of projects booked above-average margins.

Turnover rose to a record level of € 756 million, with growth being particularly evident in the core activity of dredging and earthmoving. In the first half year, Boskalis took on a record amount of € 829 million in new projects, and the orderbook, which had already reached a historical high at the end of last year, increased further to € 2.6 billion.

Peter Berdowski, Boskalis CEO:
"We have achieved excellent results, with robust equipment utilization and good operating margins. We have also benefited from our selective market strategy, in which we target the best projects. This year, there are a number of particularly strong projects that generate extra margins."


Outlook for 2007
For 2007 as a whole, the Board of Management expects an increase in the net profit, including the extraordinary items in the first half year of approximately € 20 million, of at least 40% compared to 2006, when the net profit was € 116.6 million. In addition, higher turnover is expected, accompanied by high equipment utilization and good margins. The level of capital expenditure in 2007 will be approximately € 200 million.

Healthy balance between supply and demand for the longer term
For the longer term, Boskalis also expects structurally high demand in the dredging market, with a broad spread across the world and the various market segments.

To meet market demand, the dredging industry is investing in additional capacity, and particularly in trailing suction hopper dredgers. For the industry as a whole, Boskalis is assuming that the increase in hopper capacity until 2012 will be relatively limited at approximately 20%. On the basis of identified projects, Boskalis anticipates that this will be completely absorbed by the market.

Current situation WD Fairway
The hopper WD Fairway has now reached Thailand after its collision in China earlier this year, pending the completion of the insurance procedures. The discussions with the insurers are in progress, but have not yet led to the designation of the vessel as a constructive total loss. Pending this development, the book value of the WD Fairway is maintained and depreciation for the ship is continuing.

As reported previously, a constructive total loss of the WD Fairway will result in insurance payments to Boskalis amounting to a total of more than € 165 million. On balance, the financial settlement will lead in that case to a positive result of approximately € 85 million before taxation.

Key figures (in millions of euros) 1st half year 2007   1st half year 2006
             
Turnover     755.9     553.7
Operating result     84.7     46.6
Net profit     78.8     37.8
EBITDA     129.8     85.2
Profit per share (in euros)     0.92     0.44

 

  30 June 2007   31 December 2006
             
Order book   2,616     2,543
Solvency   37.9%     39.4%

 

For more details and information, see below.

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 ten home market positions in and outside 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 additional details:

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

This press release, presentations and financial graphs can be found on our website www.boskalis.com.

 

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