Net profit declined to EUR 254 million (2010: EUR 311 million), though it should be noted that the 2010 result included exceptional pre-tax gains of EUR 33.6 million. In spite of the decline in net profit Boskalis proposes to maintain the dividend at EUR 1.24 per share.
Due to the increased uncertainties in the international markets there is continued hesitance amongst clients with regard to investment decisions, and this is putting pressure on both margins and equipment utilization levels. As a result EBITDA declined to EUR 591 million (2010: EUR 622 million) and the operating result (EBIT) to EUR 354 million (2010: EUR 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.
The order book increased to EUR 3,489 million as per end-2011 (end-2010: EUR 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.
Peter Berdowski, CEO Boskalis:
“We look back on a turbulent year, with continued pressure on margins and volume. To keep the vessels utilized requires more effort and tendering for new projects has become more competitive.
Despite the challenging market conditions we once again ended the year strong, posting record revenue and a fine result. We were aided in this by the quality of the order book and the favorable settlement of projects.
In addition we were able to make important strides in strengthening and expanding the company within the framework of our strategic plan. The activities of SMIT Terminals were merged with Lamnalco, creating a global market leader in Terminal Services. At the end of the year we completed the acquisition of MNO Vervat, thus considerably strengthening our national and international position in the infra market. We made important progress with harbor towage, in the global consolidation process we aim for, with the acquisition of Rebras in Brazil as well as the agreement in principle that we reached with SAAM regarding the combination of our Latin American towage activities.
Market conditions are expected to remain challenging in 2012. The medium term presents a mixed picture for the markets in which we operate. On the one hand we see – especially in Europe – continued reservations about investing on the part of governments. On the other hand we are positive with regard to the market developments in South America, West Africa and Australasia. We feel particularly positive about the offshore market, where we expect a great deal of work as from 2013. We will be able to benefit from this thanks to our broadened market positioning with activities such as Terminals, Transport, Heavy Lift and Subsea.”