A Good Q3 for Boskalis - Earnings Outlook for 2020 Maintained – Heavy Lift News
6 Nov 2020

A Good Q3 for Boskalis – Earnings Outlook for 2020 Maintained

Royal Boskalis Westminster N.V. (Boskalis) concluded a good third quarter. Quarterly revenue was virtually stable compared to the quarterly average of the first half year, also adjusted for currency effects, acquisitions and divestments.

The effects of the COVID-19 pandemic continue to be felt. While it was already challenging to keep projects operational outside Europe, it has also become increasingly complicated to do this within Europe. Nonetheless, in the past quarter Boskalis succeeded reasonably well in the execution of projects and keep the vessels occupied. This outstanding achievement would not have been possible without the commitment and flexibility of all employees, whilst health and safety remained a top priority.

At the end of September the order book stood at EUR 4.4 billion, slightly lower than at the end of June. Contracts worth over EUR 0.3 billion were acquired in the third quarter. The well-filled order book offers a solid position for the remainder of this year as well as a healthy basis for 2021. Clients in many cases are still moving ahead with tendering procedures for new projects,  however due to COVID-19 these processes take longer than usual.

Boskalis maintains its earnings outlook for 2020. Barring unforeseen circumstances the 2020 EBITDA, adjusted for the extraordinary charges taken in the first half of 2020, is expected to match the level achieved in 2019.

The already very solid financial position of Boskalis was further strengthened in the course of the third quarter with an increase in the net cash position to more than EUR 250 million.

Third Quarter Highlights:

  • Revenue level stable compared to the first half of the year
  • Dredging: strong utilization of trailing suction hopper dredgers
  • Offshore Energy: good contribution from both contracting and services
  • Salvage: continued high activity level
  • Order book: EUR 4.4 billion
  • Strong net cash position further improved

Outlook for 2020

  • Dredging: stable market picture with COVID-19 related disruptions
  • Offshore Energy: good year for Seabed Intervention and growth in Survey due to addition of Horizon
  • Salvage: very good year
  • Maintain 2020 EBITDA guidance: match 2019 EBITDA level ‎

Featured Title photograph

Boskalis Salvage – MV Baltic Ace wreck removal courtesy of Boskalis

Full Press release can be read on the Boskalis site here

Source Boskalis

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