Historically good 2024 first half year results for Boskalis

The first six months of 2024 have been, what Royal Boskalis B.V. (Boskalis) says, financially the most successful first half year in the company’s long history. With a high fleet utilization and an increase in earnings at all three divisions.

Boskalis published its first half year results for 2024 today.  Revenue increased 5% compared to last year to EUR 2.07 billion (H1 2023: EUR 1.97 billion).  EBITDA increased by nearly 50% to EUR 553 million (H1 2023: EUR 370 million). Adjusted for an exceptional gain in the first half of the year, EBITDA increased by 44% compared to the same period in 2023.  Net profit rose 65% to EUR 298 million (H1 2023: EUR 181 million).

Dredging & Inland Infra division

In the Dredging & Inland Infra division, revenue was stable on a slightly higher EBITDA compared to the same period last year. The hopper fleet was well utilized on sizable projects in Asia and the Middle East, and the cutter suction dredgers were fully utilized in the Middle East.

The main regions in terms of revenue contribution were Asia/Australia and Europe with substantial projects in the Philippines, Taiwan, Singapore, Australia, Denmark and the Netherlands. During the first half of the year Boskalis largely completed its work on the construction of the new Manila International Airport and the project is expected to be handed over to the client shortly. In Singapore much work was again done around the innovative polder (Pulau Tekong) and port expansion (Tuas Terminal 2) while in Taiwan and Australia energy transition projects (wind and gas) are underway.

In Europe, dredging work for the trench for the Fehmarnbelt tunnel (between Denmark and Germany) was completed in the first half of the year. In the Netherlands, Boskalis was active on a large number of projects, including the multi-year project to reinforce the Markermeer dikes north of Amsterdam, the Zuidasdok OVT project involving the expansion of the existing public transport hub in Amsterdam, and preparatory work is in full swing on the A2 Het Vonderen-Kerensheide motorway expansion project.

Offshore Energy- half of revenue from Offshore Wind

At Offshore Energy, revenue increased on a sharply higher EBITDA. All business units had a strong first half year with good results. Approximately half of the revenue was related to offshore wind projects. In the United States, the crane vessels were busy installing monopile foundations that had previously been delivered by our heavy transport vessels. In Europe, the cable-laying vessels were busy on projects including Hollandse Kust West Beta (Netherlands) and Borkum Riffgrund 3 & Godewind 3 (Germany).
Our Marine Transport & Services business units had a busy and good half year. ALP’s powerful oceangoing tugs acquired in early 2024 were deployed on projects including the transportation of an old FPSO to a recycling yard in Europe.

Subsea Services was busy in the first half year with a nice combination of projects ranging from decommissioning work in the North Sea, a multi-year maintenance contract in Dubai and inspection and maintenance work for a number of large offshore companies. Survey also had a good half year with a variety of projects in the energy markets. Across the board, the division once again successfully responded to healthy demand from both the offshore wind and traditional oil and gas markets and project execution was good.

Towage & Salvage

Salvage had a busy and successful first six months. Off the coast of Malaysia, a sunken oil platform was successfully lifted and removed from the seabed within two seasons. Salvage was also fully involved in several emergency response assignments, including the Northern Juvenile in the Strait of Malacca. Towage’s contribution to the results was higher compared to last year due to Smit Lamnalco no longer being classified as an asset held for sale. Furthermore, early July Boskalis signed an agreement for the acquisition of all remaining (50%) shares in Smit Lamnalco. The transaction is subject to customary conditions, including regulatory approval.

Financial position

Boskalis’ financial position is strong and robust. The net financial position increased further to EUR 668 million, in part as a result of the strong operating result. The robust solvency rate further increased to 54.8%. Boskalis comfortably meets its financial covenants. The size of the order book is EUR 5.3 billion and combined with the market outlook, Boskalis is positive about the rest of 2024.

Image: Bokalift 1 and 2. Source: Boskalis