Although Royal Boskalis Westminster N.V. achieved a record revenue of € 2.8 billion in 2011 (2010: € 2.7 billion), net profit still declined to € 254 million (2010: € 311 million). In spite of the decline in net profit Boskalis proposes to maintain the dividend at € 1.24 per share.
The current market leads to hesitant clients with regard to investment decisions, and this puts pressure on both margins and equipment utilization levels. As a result EBITDA declined to € 591 million (2010: € 622 million) and the operating result (EBIT) to € 354 million (2010: € 402 million). The lower result in the core segment Dredging & Earthmoving was positively impacted by the financial settlement from previously completed projects. The remaining activities realized a stable or slightly higher operating result, partly as a result of the full consolidation of Smit.
Order Book Increases
The order book increased to € 3,489 million as per end-2011 (end-2010: € 3,248 million). Compared to the 2011 mid-year level and adjusted for consolidation and deconsolidation effects, the order book was slightly higher at the end of the year.
Outlook
Given the current market conditions Boskalis expects 2012 will be affected by a slow down on the positive drivers that underpin the company’s strategy. This situation, combined with the project-based nature of a significant part of the company’s activities means the company is currently unable to provide quantitative guidance for the 2012 annual result. Boskalis anticipates however, that the 2011 result will not be matched. Based on current insights the company does not foresee a materially different market environment in 2012 relative to 2011, but prospects for the medium term are more positive.
