Boskalis_Annual_Report_2016

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OFFSHORE WIND VBMS generates 90% of its revenue from the offshore wind sector. “This sector has experienced massive growth in a short space of time,” said Van Poppel. “When the first offshore wind farms were built, some ten years ago, the price of a megawatt hour exceeded 220 euros. On the Dutch Borssele III and IV wind farms, whose export cables will be installed by VBMS, the price has fallen to just 55 euros per megawatt hour. That means that the costs of wind energy have fallen by 75%.” As a consequence Van Poppel expects that the time will come when the sector is no longer dependent on government subsidies. END-TO-END SOLUTIONS In the offshore wind sector VBMS delivers end-to-end solutions for the electrical infrastructure of wind farms, both offshore and for the connection from offshore to onshore. In 2016 the company achieved a substantial 80% increase in revenue from projects including Sandbank, Nordergründe, Rampion, Galloper, Egmond, Aberdeen, Borssele and Blyth. And the order book is well filled for the next few years. “Offshore wind projects have a very long lead time,” said Van Poppel. “We are already tendering for projects that will commence in 2024.” In addition to the cable installation VBMS is increasingly taking responsibility for the entire process, in other words a ‘grid-to-grid’ connection. “Our expertise includes the supply of export and inter-array cables, the burial and connection of these and the realization of shore landings, including any directional drilling under dunes or dikes needed for the connection of the onshore and offshore cables.” interconnectors: extensive cable systems that connect national electricity transmission systems. “It will take years to develop reliable methods for storing wind energy,” said Van Poppel. “In the meantime the European electricity grids are being connected, enabling countries to supply each other power when the wind is blowing in one country but not in the other. As a result renewable energy is becoming increasingly reliable.” A second growth market is the oil and gas industry. Here, VBMS’ activities include the installation and maintenance of seabed infrastructure, such as power cables, umbilicals and flexible flowlines. A new development concerns the electricity supply to existing offshore oil and gas platforms. “The somewhat older fields need a lot of energy to pump up the final remnants,” said Van Poppel. “In light of this oil and gas companies are increasingly opting to equip these installations with electrical systems. This means that cables have to be installed, either from the shore or from a nearby wind farm. Transitional technologies like these offer excellent prospects for VBMS in the coming years.” CRITICAL MASS For VBMS the 100% takeover by Boskalis brings numerous benefits. “It gives us better access to an international network of clients and will enable us to carry on growing in both the renewables and oil and gas markets,” said Van Poppel. “We need critical mass and a solid financial position in order to bring our services and total solutions to the market in a sustainable way and to mitigate risks. Being able to use Boskalis’ longstanding knowledge and expertise and have access to its broad array of services and assets will enable us to further enhance the services we provide. For example, for Borssele I and II we teamed up with our colleagues at Boskalis to develop an appropriate and integrated approach. Without them we would not have won this tender.” OTHER GROWTH MARKETS VBMS is also active in other growth markets, including the installation of

Cable installation activities by the cable-laying vessel Ndurance.