Boskalis intends to distribute a dividend of EUR 1.24 per share and intends to start a three-year share buyback program.

EBITDA also reached a record high level of EUR 800 million (2012: EUR 567 million) and EBIT was EUR 466 million (2012: EUR 336 million). The contribution to the result from Dredging increased, partly due to substantial results on the financial settlement of projects completed at an earlier date, the sale of equipment and the settlement of an insurance claim. Offshore Energy’s contribution to the result rose sharply, in part explained by the contribution from the Dockwise activities acquired at the start of 2013. The contribution to the result from Inland Infra fell, partly due to the sale of the 40% stake in Archirodon as well as integration and reorganization expenses. Towage & Salvage had a good year.

The order book declined slightly to EUR 4,005 million (end-2012: EUR 4,106 million). The acquisition of Dockwise and the sale of the 40% stake in Archirodon on balance had a neutral effect on the size of the order book.

Peter Berdowski, CEO Boskalis:

“Last year was another turbulent year – both in the market and for our company. A year in which we acquired Dockwise and took another major step in expanding the company. It was also an excellent year from a financial perspective, with the company breaking many of its records.

In order to focus the group and set priorities we have prepared an updated business plan, the key points of which are presented in the 2013 Annual Report. This plan lays the foundation for the further development of Boskalis.

The Business Plan provides for further targeted expansion of the offshore energy activities in the area of Transport, Logistics & Installation by means of selective investments in equipment and the organization. We expect capital expenditure of around EUR 800 million in the next three years, roughly in line with the level of depreciation.

At the beginning of 2013 we issued just under ten million new shares as a capital buffer for the acquisition of Dockwise. In view of our sound balance sheet and projected cash flow we plan to start a share buyback program for ten million shares in the period 2014-2016.”

Market developments

The markets in which Boskalis operates are driven by growth in global trade, energy consumption and the world’s population, as well as by the effects of climate change. Recent research has confirmed that these trends will continue in the longer term despite regional economic stagnation.

In the short term we are assisted by the growing demand for deep sea ports with the ability to cater to the new generation of bulk carriers and container ships, as well as by the increasing shift towards (complex) offshore locations for oil and gas extraction.

Boskalis expects market conditions for its Dredging and Towage activities to be stable in the next three years, with scope for growth mainly seen for Offshore Energy in the area of Transport, Logistics & Installation. There are clear opportunities here for Boskalis with its combination of assets and expertise following the acquisitions of SMIT and Dockwise. Boskalis can further strengthen its position in this segment through targeted investments in ships or through acquisitions, for example the recent takeover of Fairmount with its leading position in the global market for oceangoing tugs.

Outlook

Current information suggests that no major changes are to be expected in the market environment compared to 2013. At Dredging and Offshore Energy we once again expect healthy fleet utilization levels in the first half of the year. After a strong 2013 for Dredging the absence of comparable extraordinary effects will result in a lower operating margin in 2014. The outlook for Offshore Energy, Inland Infra and Towage & Salvage is stable compared to 2013.

The project-based nature of a significant part of our activities tends to make it difficult to give a specific quantitative forecast for the full-year result early on in the year. In light of this we are currently unable to provide quantitative guidance with regard to the 2014 full-year result.

Boskalis has a very sound financial position. Maintaining a healthy balance sheet is an important principle underlying the business plan for the 2014-2016 period, whereby we aim for a net debt: EBITDA ratio in a range of 1 to 1.5 times. Total capital expenditure for the renewal and strengthening of the fleet is projected at around EUR 800 million in the next three years, of which around EUR 300 million in 2014. This amount is in line with the level of depreciation and excludes of any possible acquisitions.

The business plan is based on current expectations with regard to global developments in the market segments that are relevant to us, in particular the Offshore Energy market. Based on these plans we expect to realize a return on equity of approximately 12% in the coming years.

Within this framework and based on these principles Boskalis intends to launch a share buyback program for 10 million shares. The program will be executed in the period 2014-2016, subject to the development of results and maintaining the desired balance sheet ratios. The repurchasing of shares is also subject to annual approval by the General Meeting of Shareholders.

The two associations look forward to a close and fruitful dialogue between ports and the coordinators and hope that these will recognise the importance of sea and inland ports as an integral part of the multi-modal TEN-T corridors.

Today, the European Commission appointed European coordinators for each of the nine core network corridors of the trans-European transport network (or TEN-T), as well as for the European Rail Traffic Management System (ERTMS) and for Motorways of the Sea. The coordinators will be responsible for coordinating priority transport projects and reporting back to the Commission. The new coordinators will now enter into contact with Member States authorities and ministers to discuss the framework for cooperation and implementation of their mandates. The following coordinators were appointed:

·         Pavel Teli?ka (North Sea–Baltic corridor)

·         Pat Cox (Scandinavian–Mediterranean corridor)

·         Carlo Secchi (Atlantic Corridor),

·         Péter Balázs (North Sea–Mediterranean corridor)

·         Laurens Jan Brinkhorst (Mediterranean corridor)

·         Karel Vinck (ERTMS)

·         Karla Peijs (Rhine–Danube corridor)

·         Former Spanish Foreign Minister Ana de Palacio will be responsible for the Rhine–Alpine corridor

·         Former German Minister for Transport Kurt Bodewig takes on the Baltic–Adriatic corridor.

·         MEP Brian Simpson (Motorways of the Sea) and

·         MEP Mathieu Grosch (Orient/East–Med corridor)

ESPO Chairman Santiago Garcia-Milà said: “Sea ports have a crucial role to play in the new TEN-T network: They are the main providers of cargo and the main entry gates to the European Union and facilitators of short sea shipping. It is therefore important to consult ports and to listen to their needs when developing the corridors.”  

EFIP Director Kathrin Obst said: “Inland ports are the multi-modal connecting points of the new sustainable TEN-T Network. In this context we very much welcome the fact that the European Commission is, for the first time, putting a specific focus on multi-modality by making available funding for the development of multi-modal logistics platforms and their connections.”

The TEN-T Guidelines and the Connecting Europe Facility offer a number of opportunities for the ports. It is important that the ports themselves make the most of this opportunity to take part in the development of the TEN-T network. To further enhance this, however, some remaining aspects still need to be clarified. This is in particular the case for Motorways of the Sea and for the support to sustainable freight transport services that is outlined in Article 32 of the TEN-T Guidelines. Funding in the magnitude of €150-200m is to be made available for sustainable freight transport services, but it is still unclear what type of activities will be eligible under this heading. The predecessor of this instrument, the Marco Polo Programme, was heavily criticised for distorting competition between transport operators. Similar problems could be avoided in future by focussing the funding on infrastructure investments rather than transport services.

“We think February’s volume could have been even greater, but repeated snow storms and resulting lost work days had an impact on us,” said John F. Reinhart, the Virginia Port Authority’s CEO and executive director. “Anything we lost in February, we expect to be made up in March.

“The POV is dedicated to improving our service and operations to accommodate this increasing volume. We must achieve financial stability in the POV and optimize our facilities. The adverse impact of congestion compounded by several winter storms has resulted in continued operating losses. These current losses must be reversed through focus on costs, processes, productivity and coordination with our customers, partners and suppliers.”

February’s growth was led by imports, which increased by 8.4 percent (6,515 TEUs) when compared with last February. (This January, growth was led by exports.) There was also growth in breakbulk tonnage, 1.1 percent; rail containers, 5.5%; barge containers, .6 percent; and vehicle units, 7.6 percent.

This follows a remarkable success achieved in 2013 in the same region, receiving 12 orders in only 12 months for the strongest mobile harbour crane model available, the LHM 600. Capable of servicing vessels up to 19 container rows wide, the LHM 600 provides a maximum outreach of 58m and a maximum lifting capacity of 208 tonnes.

Based in Chile, Compania Portuaria Mejillones S. A. opted for their second Liebherr mobile harbour crane. The LHM 600 is based on a special design. An elongated tower extension ensures that the position of the tower cabin is higher than 37 metres. Besides better sight into the ship for the crane driver, one striking benefit is a higher fulcrum point which eases the handling of bigger vessels. All advantages come without any influence on safety or operational parameters like lifting capacity and travelling speed. The first cranes equipped with this special tower design started operation in Argentina and Uruguay in 2013. The new LHM 600 will join an existing LHM 500, delivered in 2008.

Another LHM 600 will soon add capacity in port of Arica, Chile. Terminal Puerto Arica S.A. preferred this model due to its worldwide proven high capability. The crane is configured for dedicated container handling. It is the first Liebherr mobile harbour crane for this terminal.

In Brazil, Chibatão Navegação e Comércio LTDA decided to enforce their port with LBS 600s. Liebherr Barge Slewing (LBS) cranes are an efficient combination of the innovative mobile harbour crane concept and a fixed pedestal mounted on a barge, which replaces the undercarriage. LBS cranes provide an economical and space-saving solution for the installation on quaysides and jetties, especially in Manaus where room for manoeuvring is limited. In total, three LBS 600s will be installed in Manaus this year, where an existing fleet of nine Liebherr Fixed Cargo Cranes and six Liebherr Rubber Tyre Gantry Cranes is already in operation.

In Peru, Callao S.A. will receive two LHM 550s this year, which will significantly increase container and bulk handling throughout the port. The port has already two LHM 550s in operation since 2012. Each of these LHM 550s is equipped with Liebherr’s hybrid power booster Pactronic®. By adding an accumulator as a secondary energy source, Pactronic® is regenerating the reverse power while lowering the load. The stored energy is transferred back to the system when the crane requires peak power during hoisting. In terms of turnover capacity, that means a plus of up to 30% and a reduction of fuel consumption in the same range, depending on operation. The hybrid drive system is virtually maintenance free as it just needs visible inspection every 10 years. 100% recyclability and less noise exposure are additional ecological benefits of this advanced system. Both new cranes are further equipped with electric drive for land-based power supply.

End of this year, seven LHMs are going to be in operation in Peru, where Liebherr Maritime Cranes is the clear market leader.

Liebherr Maritime Cranes is optimistic that the demand in Latin America remains strong throughout the 2014 year.