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Boskalis jaarverslagen 2012

Operational and financial developments

As of 2014 Boskalis applies IFRS11 Joint Arrangements (IFRS11), the new standard for the recognition of joint ventures and associated companies. The comparative figures for 2013 have been adjusted to reflect this. The comparative net profit figures are not impacted by the adjustment.

For Boskalis the application of IFRS11 means that joint ventures the new standard for the recognition of joint ventures and and associated companies are no longer consolidated (on a proportional basis), but exclusively accounted for using the equity method.
The main joint ventures and associated companies are not impacted by the adjustment. Smit Lamnalco, VBMS, the partnerships in Singapore with Keppel (Keppel Smit Towage, Maju Maritime and Asian Lift) and, from 1 July 2014, the joint ventures with SAAM (SAAM SMIT Towage). Boskalis’ share in the net result of joint ventures and associated companies is included in the consolidated EBIT(DA), both for 2014 and the comparative figures for 2013.

Dockwise was fully consolidated in 2014, whilst in the first quarter of 2013 it was still recognized as result from associated companies based on the pro rata stake. As from the second quarter of 2013, Dockwise was consolidated in the Offshore Energy segment. The operations of Fairmount were acquired in March 2014 and consolidated as from the second quarter, also in the Offshore Energy segment. As from the third quarter the SMIT harbour towage activities in North, Central and South America were transferred to the joint venture and associated company SAAM SMIT Towage and as a result are no longer included in the consolidated figures from 1 July 2014.

Revenue

During the past year revenue rose by 1% to EUR 3.167 billion (2013: EUR 3.144 billion). Adjusted for acquisitions, divestments and deconsolidation effects revenue fell by 2%.

Dredging & Inland Infra had a good year with good fleet utilization and a stable level of activity. Offshore Energy also had a good year with a rise in revenue and high fleet utilization. The increase in revenue in this segment is mainly due to the aforementioned impact of consolidating Dockwise for an extra quarter and Fairmount for three quarters. Revenue in the Towage & Salvage segment declined mainly due to the loss of the year of the revenue from the harbour towage activities transferred to SAAM SMIT Towage in the second half.

Result

In 2014 the operating result before interest, taxes, depreciation, amortization and impairments (EBITDA) and including the contribution from our stake in the net result of joint ventures and associated companies totaled EUR 945.9 million (2013: EUR 757.2 million).

The operating profit (EBIT) was EUR 652.3 million (2013: EUR 463.4 million). The operating profit includes the contribution from our stake in the net result of joint ventures and associated companies of EUR 56.4 million (2013: EUR 63.7 million).

All three segments posted sharply higher results compared to 2013.

Dredging & Inland Infra had a good year operationally with good fleet utilization and good project results. Furthermore, there was a substantial contribution from financial settlements on old projects in both the first and the second half of the year.

Offshore Energy also had a strong year with a high utilization of its equipment and good project results. Dockwise had a record year, in part due to cancellation and rescheduling fees relating to previously contracted transport capacity. Furthermore, Dockwise contributed an extra quarter compared to 2013 and from the second quarter there was a contribution from Fairmount, acquired in March 2014.

The result at Towage & Salvage also increased, in part due to higher results from the harbour towage activities, a strong contribution from Smit Lamnalco and the financial settlement of salvage projects carried out in previous years.

On balance non-allocated group costs equaled EUR 47.9 million (2013: EUR 6.0 million). In 2013 the result was positively impacted by a (revaluation) result relating to the acquisition of Dockwise and a substantial book gain arising from the sale of the 40% stake in Archirodon.

RESULT BY SEGMENT (EBIT)*   2014   2013
(in EUR million)        
Dredging & Inland Infra   380.1   255.2
Offshore Energy   236.1   147.0
Towage & Salvage   84.0   67.2
Non-allocated group costs   -47.9   -6.0
Total   652.3   463.4
*
 
Our share in the net result of the joint ventures and associated companies is included in the EBIT(DA). 2013 figures adjusted for IFRS11.

Net profit

The operating result (EBIT) was EUR 652.3 million. Net of financing expenses of, on balance, EUR 35.9 million, profit before taxation was EUR 616.4 million. Net profit attributable to shareholders totaled EUR 490.3 million (2013: EUR 365.7 million).

As well as the aforementioned good fleet utilization rate and good project results, the sharp increase in the result is mainly attributable to sizable results from the financial settlement of both Dredging and Salvage projects whose technical completion took place earlier, as well as a major contribution from cancellation and rescheduling fees relating to previously contracted transport capacity at Offshore Energy. Conversely the result was negatively impacted by various impairment charges on smaller equipment, as well as a one-off charge relating to the harmonization across the group on how vessel dry-docking costs are accounted for. On balance the effect of these exceptional items was EUR 200 million before tax and EUR 154 million after tax.

Order book

In 2014 Boskalis acquired, on balance, EUR 2,941 million worth of new contracts. At the end of the year the order book, excluding our share in the order book of joint ventures and associated companies, stood at EUR 3,286 million (end-2013: EUR 3,323 million).

ORDER BOOK*   2014   2013
(in EUR million)        
Dredging & Inland Infra   2,014.2   2,000.5
Offshore Energy   1,207.4   1,322.9
Towage & Salvage   63.9   -
Total   3,285.5   3,323.4

Excluding our stake in the order book of joint ventures and associated companies.

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