“Both revenue and operating profit were higher than the average seen in the first two quarters of the year. The increase was wholly attributable to the contribution from the offshore activities acquired from VolkerWessels, which are consolidated with effect from the third quarter. Adjusted for these activities there was a slight decline in revenue and operating profit compared to the average seen in the first two quarters of the year,” the company said in a statement.
“Adjusted for acquisitions there was a substantial decline in revenue and operating profit compared to the third quarter of last year, in line with expectations. 2015 as a whole was an exceptionally good year with high fleet utilisation and particularly good project margins. Market conditions remain persistently difficult both at dredging and for the capacity-driven service-related activities of offshore energy, putting pressure on volumes and prices.”
The company’s orderbook increased to $3.15bn up 8% compared to end-June, with the increase wholly attributable to the addition of the offshore activities of VolkerWessels.
The expectations for the remainder of the year remain unchanged. For 2016 as a whole Boskalis expects the operating net profit in the second half to approach the level achieved in the first half of the year. On balance the order book at dredging & inland infrastructure fell by around 5% compared to mid-2016.
Capital expenditure in 2016 is expected to total $186m-$217.5m, excluding acquisitions. The amount is well below the level of depreciation and will be financed from the company's own cashflow.
At the beginning of July, Boskalis announced a fleet rationalisation programme to be implemented over the next two years. It involves 24 vessels being taken out of service and the loss of 650 jobs. Of the announced reduction affecting 650 jobs, the workforce has already been reduced by more than 200 jobs. The timing of the remaining workforce reduction is partly dependent on factors including the current deployment of vessels and national legislation.
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