Press release

21 August 2008

Headlines first half 2008

  • Net profit increases to € 202 million
  • Net profit excluding non-recurring income up by 40% to € 110 million
  • Record revenue of € 938 million: +24%
  • Non-recurring net income from the settlement of the insurance claim for the W.D. Fairway of € 92 million
  • Order book stable well-filled: € 3.4 billion
  • Structurally high market demand, with broad spread across the world

Prospects for 2008

  • Profitability for second half year expected to be comparable to strong second half year of 2007
  • Higher revenue, high equipment utilization, healthy operating margins
  • Level of investments approximately € 300 million

In the first half of 2008, the net profit of Royal Boskalis Westminster nv rose to € 202 million (first half year 2007: € 78.8 million). The net profit excluding non-recurring income rose 40% to € 110 million. The net profit was boosted by € 92 million non-recurring income (pre tax: € 97 million) as a result of the settlement of the insurance claim for the W.D. Fairway.

Boskalis benefited from the strong demand in the international dredging market, which led to good margins and sound equipment utilization, particularly of the large hoppers. Boskalis also reaped the harvest of its selective contracting strategy, so that a number of projects returned above-average margins.

Revenue rose to a record level of € 938 million, with growth being particularly evident in the core activity of dredging and earthmoving. In the first half year, Boskalis acquired € 790 million in new projects, which meant that the order book was stable well-filled. The contract signed earlier this year for Maasvlakte 2 (the Netherlands) worth approximately € 500 million, and the recently announced projects - Cape Lambert, Australia for € 145 million and the Delfland coast, the Netherlands for € 60 million - have not yet been included here.

Peter Berdowski, CEO:
"We have had an exceptionally strong first half year. In contrast with previous years, operations were not really affected by the weather in the past winter. Furthermore, on a number of projects we achieved above average margins. Despite the rise in operating expenses such as fuel and repairs, margins on the new projects remain healthy. And our expectations for the second half of this year are also positive. With the recent projects that we have acquired in the Netherlands and Australia, our fleet will be well utilized until well into 2009."

Market developments
On almost all continents and in all relevant segments for Boskalis, demand for maritime infrastructure continues to be strong. That applies in particular to energy- and raw-material-related projects in, for example, the Middle East, West Africa and Australia. But the development of container ports, as in Europe, is also showing no let-up.

Prospects for 2008
The Board of Management expects the result for the second half of the year to be comparable to the strong second half year of 2007. In addition, full year 2008 revenue is expected to be higher, accompanied by high equipment utilization and good margins. The level of investments in 2008 will be approximately € 300 million.

 

Key Figures (in millions of euros) 1st half year 2008 1st half year 2007
Revenue 938.2 755.9
Operating result 227.4 84.7
Net profit 202.0 78.8
Net profit excluding non-recurring income from W.D. Fairway 110.0 78.8
EBITDA 275.8 129.8
Earnings per share (in euros) excluding non-recurring income from W.D. Fairway 1.28 0.92

 

  30 June 2008 31 December 2007
Order book 3,414 3,562
Solvency 39.8% 35.3%

 

For more details and information, see below.

This is an English translation of the Dutch version of the 2008 half year results of Royal Boskalis Westminster nv. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail.

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:

Martijn Schuttevâer
Director of Investor Relations & Corporate Communications
Telephone: +31 (0)78 69 69 822 / +31 (0)6 200 10 232
Telefax: +31 (0)78 69 69 020
E-mail: m.l.schuttevaer@boskalis.nl

 

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

 

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