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Boskalis jaarverslagen 2012

Towage & Salvage

Towage: towage services and berthing and unberthing of oceangoing vessels in ports and at offshore terminals, management and maintenance both above and below the surface of onshore and offshore oil and gas terminals and associated maritime and management services. Salvage: providing assistance to vessels in distress, wreck removal, environmental care services and consultancy.

TOWAGE & SALVAGE   2014   2013
(in EUR million)        
Revenue   270.6   363.0
EBITDA*   118.6   103.9
Result from JVs and associates   38.3   21.9
Operating result (EBIT)*   84.0   67.2
Order book at year end   63.9   -

*
 
Our share in the net result of the joint ventures and associated companies is included in the EBIT(DA). 2013 figures adjusted for IFRS11.

Revenue

Revenue at the Towage & Salvage segment fell in 2014 to EUR 270.6 million (2013: EUR 363.0 million). The decline was mainly due to the further realization of the Towage strategy, which aims to place activities in joint ventures where possible. In mid-2014 Boskalis established two joint ventures with SAAM S.A. of Chile, for the combined harbour towage operations in Brazil, Mexico, Panama and Canada under the joint name SAAM SMIT Towage. In accordance with IFRS11 these activities have been deconsolidated and are reported as result from joint ventures and associated companies from the third quarter of 2014.

In addition to these harbour towage operations which have now been transferred, in 2014 Boskalis – operating under the name SMIT Harbour Towage – provided towage services in the ports of Rotterdam and Liverpool as well as ports in Belgium. The level of activity in these ports was moderate to good, with Rotterdam in particular being busy, with a relatively high level of offshore-related services in addition to the regular towage operations.

Revenue at SMIT Salvage in 2014 was lower compared to 2013 due to a limited number of emergency response contracts. Two large wreck removal projects commenced in the second quarter: the sunken car carrier Baltic Ace in the North Sea and a jack-up rig off the coast of Angola. Both projects are expected to be completed in 2015.

Segment result

EBITDA in the Towage & Salvage segment totaled EUR 118.6 million and the operating result was EUR 84.0 million (2013: EUR 103.9 million and EUR 67.2 million, respectively). This includes the results from the financial settlement of salvage projects that were carried out in 2011 and early 2013. The result includes our stake in the net result of joint ventures and associated companies, in particular Keppel Smit Towage, Smit Lamnalco and, from the third quarter, SAAM SMIT Towage. The contribution of these activities was EUR 38.3 million (2013: EUR 21.9 million). The result of Smit Lamnalco includes a book gain on the sale of its 40% stake in the associate IRSHAD.

Order book

In early 2014 we acquired two large wreck removal contracts: for the Baltic Ace car carrier in the North Sea and a jack-up rig off the coast of Angola. At end-2014 the order book, which relates solely to the Salvage activities, stood at EUR 63.9 million (end­2013: zero).

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