Papendrecht, November 11, 2022
HIGHLIGHTS IN THE THIRD QUARTER
- Busy quarter with increased sales and earnings
- Order backlog: EUR 5.1 billion
- Solid balance sheet with increased net cash position
- Delisting from Euronext Amsterdam as of 9 November
Boskalis completed a busy and strong third quarter from both a financial and operational perspective. Both quarterly sales and earnings in the first half of the year were above the quarterly average. Also from an operational perspective, our key businesses – Dredging & Inland Infra and Offshore Energy – had a good quarter.
Boskalis’ strategy is structured around three clusters of activities that add value to society, with the aim of creating sustainable growth. A number of impressive and impactful projects were completed during the last quarter, a selection of which are highlighted below.
Createeng Innovative infrastructure
As Boskalis, we facilitate world trade, support economic development, and create infrastructure and new land for society. The following projects contribute to this pillar.
In which Philippines, the construction of a nearly 1,700-acre sand body on the outskirts of Manila for the new Manila International Airport is in full swing. The dredgers, among the largest in the fleet, have delivered more than a third of the required total volume of 150 million cubic meters. As part of the project scope, a 360 meter quay wall will be constructed using six large caissons transported from Spain by our heavy lift vessel BOKA Vanguard. The project is carried out according to strict international environmental and social standards.
in the Denmark, the construction of the Fehmarnbelt Tunnel, which connects Scandinavia with Central Europe, is in full swing. The working harbor at the Danish end of the tunnel has been completed and the dredging work for the 18-kilometer tunnel trench is underway. When completed, this will be the longest underwater tunnel in the world, reducing the rail travel time between Hamburg and Copenhagen from 4.5 hours to 2.5 hours, which will also result in a significant reduction in CO2 emissions.
in the FinlandBoskalis received the 2022 Project of the Year Award from the Finnish Project Management Association for deepening the Vuosaari Canal in the Port of Helsinki. The scope of the project included deepening the existing access channel to 13 meters and a significant portion of the dredged material was reused for land reclamation for the new Hernesaari residential and office area in the Finnish capital. Boskalis was praised for its active communication with the local community.
A remarkable one newly acquired project concerns the development of the Europa Terminal for the port of Antwerp in Belgium, to ensure the port can continue to accommodate the largest container ships and increase capacity by a third.
progresseng the energy transition
Boskalis seeks to expand access to renewable energy and facilitate the energy transition by developing infrastructure to provide affordable and clean energy. During the past quarter, several key projects contributed to this cluster.
in the Taiwan, Boskalis has been active in several offshore wind projects, the largest of which is the development of Changfang & Xidao. The recently commissioned crane vessel Bokalift 2 has completed its 2022 installation campaign for jackets and pinpiles. The remaining jackets and pinpiles will be installed in 2023.
in the France, Boskalis together with its consortium partners recently completed the installation scope of 71 Gravity Base Structures (GBS) serving as turbine foundations for Fécamp’s offshore wind energy. In addition to seabed preparation, Boskalis was responsible for scour protection and ballasting these concrete foundations. The project is expected to generate enough electricity to meet the household needs of more than 770,000 people with an estimated reduction of two million tons of CO2 per year.
surveying and underwater services offer specialized services for the offshore energy sector. Fleet utilization was exceptionally high in the third quarter. In addition to using ships in the Middle East, significant work was also carried out in the North Sea.
Pprotectionion through climate adaptation
For more than a century, Boskalis has been active in protecting against the forces of nature. Today, through our coastal protection and river bank protection, we help protect people and the natural environment from the consequences of climate change, such as sea level rise and extreme weather conditions. A selection of the projects currently underway include the following.
In early 2022, Boskalis was commissioned to protect part of the eroded coastline of Togo and Benin Western Africa. The coastal protection project is part of the West African Coastal Areas Management (WACA) program.
In which Netherlands, the multi-year project to strengthen the Markermeer dykes north of Amsterdam is in full swing. The Markermeer dikes are part of the Zuydersee dikes that have protected the hinterland from the former Zuydermeer and now from the Markermeer for centuries. The levee reinforcement is necessary because more than 30 kilometers of levees no longer meet water safety standards, while nearly 1.2 million people live in the hinterland. The project is part of the national flood protection program and is carried out in an innovative joint contract.
Combined with our human capital, Boskalis’ strength lies in its ability to deploy proprietary assets of excellence.
The recently commissioned Boka lift 2 The crane vessel is currently undergoing another modification, adding two tools to the vessel for offshore wind projects. The US wind farms Southfork and Revolution require the installation of 2,300 ton monopiles with a length of up to 114 meters and a diameter of 10 meters next year. A righting hinge is currently being prepared for installation in Singapore, with which the monopiles will be brought into a vertical position. After installation, the Bokalift 2 will sail to Rotterdam, where a motion-compensated stack gripper frame will be installed in early 2023.
Boskalis recently expanded its offshore fleet with the acquisition of the BOKA North Ocean Construction Support Vessel (CSV). This is the fourth CSV in the BOKA Tiamat, BOKA Atlantic and BOKA Southern Ocean series. With her large deck area and 400 ton crane, the BOKA Northern Ocean is a CSV that belongs to the high-end CSV market. This is a very important market for Boskalis, ranging from installation work for subsea services or subsea cables to floating wind farms. Thanks to its A&R (Abandonment and Recovery) system with winches, the new CSV can lower objects of up to 350 tons to depths of up to 3,000 meters.
Looking ahead, the order book stands at 5.1 billion euros, providing a solid foundation for the rest of this year and beyond. Based on fleet planning and portfolio work, Boskalis’ full-year EBITDA outlook remains unchanged. Adjusted for special effects, EBITDA 2022 is expected to be around EUR 500 million. For 2022, the unchanged investment outlook is around 450 million euros, including dry docks but excluding possible acquisitions.
In addition, Boskalis’ financial position is very solid, improving during the quarter to a net cash position excluding lease liabilities of EUR 207 million. Given the market opportunity, Boskalis intends to continue investing in sustainable growth in line with its strategic agenda.
HAL’s public offering for all outstanding shares of Boskalis was completed in September. HAL acquired more than 95% of all shares during the offer period (after), which led to a delisting of Boskalis. As of November 9, 2022, Boskalis is no longer listed on Euronext Amsterdam.
FOR MORE INFORMATION
Martijn LD Schuttevaer
T +31 786969310
Boskalis is a leading global service provider active in the fields of dredging, maritime infrastructure and maritime services. The company offers creative and innovative total solutions for infrastructural challenges in the marine, coastal and delta regions of the world. With core activities such as coastal protection, river bank protection and land reclamation, Boskalis is able to provide adaptive and mitigating solutions to combat the impacts of climate change, such as extreme weather conditions and rising sea levels, as well as solutions to the increasing need for solutions in space in coastal and delta regions the whole world. The company promotes the development of offshore energy infrastructure, including renewable wind energy. Boskalis is also involved in the construction and maintenance of ports, waterways, access canals and civil infrastructure, thereby facilitating trade flows and regional socio-economic development. In addition, Boskalis is a global expert in sea salvage and has a strategic partnership in terminal services (Smit Lamnalco). With a diverse fleet of more than 500 vessels and floating equipment and approximately 10,000 employees, including employees, Boskalis creates new horizons worldwide.
You can also find this press release on our website www.boskalis.com.
Trading update Q3 2022 ENG 11112022
Coastal Defense September 2022 Noordwijk, The Netherlands