Boskalis has seen a profit drop of 10 per cent in the 2015 and said it expects a ‘substantially lower’ 2016 full-year result, compared to last year’s satisfactory bottom line, despite tough market conditions.
The Dutch dredging and marine specialist generated net income of €440 million on revenue of €3.24 billion, versus net income of €490 million on revenue of €3.17 billion in the year 2014.
Boskalis reported full-year 2015 EBITDA of €884.7 million which is lower than a year-earlier result of €946 million.
The company’s order book decreased to € 2,49 billion, compared to €3.28 at the end of 2014.
“Falling prices for oil, gas and commodities are also taking their toll in various market segments we operate in. Volumes and prices are under pressure, which is also translates into our order book,”explains Peter Berdowski, CEO of Boskalis.
Market Outlook and Cost Reduction
According to Boskalis, its offshore energy outlook remains mixed. A number of long-term contracts and work already contracted should secure utilization for part of the fleet, however, transport activities and subsea services are said to be experiencing pressure on utilization rates and margins.
To adjust to the latest market developments Boskalis has therefore launched a fleet rationalization and cost reduction program.
Namely, it is expected that equipment will be taken out of service in both, dredging and offshore energy divisions with the associated implications for staffing levels. In addition, the company said it is taking a ‘critical look’ at reducing the cost of the global office network.
Furthermore, the company was unable to to give a specific quantitative forecast with regard to the 2016 full-year result early on in the year, but said it expects considerable decline in net profit when compared to 2015 result.
“Our fleet, organization and balance sheet put us in an excellent position to weather the storm with reason and consideration and come out of it even stronger,” said Berdowski.
Boskalis said it will propose that a dividend of €1.60 per share be distributed in the form of ordinary shares, unless the shareholder opts to receive a cash dividend. According to the company, the dividend will be payable from June 3, 2016.