Boskalis_Annual Report_2017

ANNUAL REPORT 2017 – BOSKALIS 33

OPERATIONAL AND FINANCIAL DEVELOPMENTS

RESULT In 2017, the operating result before interest, taxes, depreciation, amortization and impairment charges (EBITDA) totaled EUR 436.6 million (2016: EUR 660.5 million). EBITDA includes the contribution from our share in the net result of joint ventures and associated companies. EBIT amounted to EUR 185.0 million. This result includes our share in the net result of joint ventures and associated companies, which on balance amounted to EUR 31.0 million. 2016 EBIT, corrected for pre-tax impairment charges of EUR 842.6 million, amounted to EUR 384.6 million. For Dredging & Inland Infra the operating results amounted to EUR 110.5 million (2016: EUR 119.7 million). Margins on dredging projects executed in 2017 were generally at lower levels than in previous years. Settlements on projects technically completed in previous years contributed again positively to the result. Offshore Energy earnings were in line with the frst half of 2017, with an operating results for the full year of EUR 85.0 million (2016: 209.5 million). The decline relative to last year reflects the poor market conditions in the oil and gas industry. Furthermore, the contribution from offshore wind projects was limited compared to 2016, when two large projects were under execution. Gardline, the survey company acquired mid-August of 2017, contributed EUR 15.0 million, which was fully attributable to a net badwill gain.

REVENUE During the past year revenue decreased by 10% to

EUR 2.337 billion (2016: EUR 2.596 billion). Adjusted for consolidation, deconsolidation and currency effects, revenue declined by 15%. This decrease is mainly a consequence of the continuing challenging market conditions, in particular in the offshore energy sector. In line with the frst half of 2017 Dredging & Inland Infra was busier than last year, with revenues up 11% on the back of higher vessel utilization rates. The biggest revenue growth was realized outside of Europe, with large projects under execution in Brazil, Oman, Indonesia, India and the United Arab Emirates. The revenue decline within Offshore Energy is a result of the low activity levels in the oil and gas industry. Furthermore, the contribution from offshore wind foundation transportation & installation projects was limited compared to a very busy 2016, when two large projects were under execution. The survey activities of Gardline, acquired mid-2017, made a modest revenue contribution in the second half of the year. Revenue within the Towage & Salvage division declined as a consequence of the deconsolidation of the European harbor towage activities as per the second quarter of 2016. Following an unusually quiet frst half of the year Salvage had a very busy second half year, with numerous emergency response contracts.

100

Dredging & Inland Infra Offshore Energy

2017

2016

REVENUE BY SEGMENT

(in EUR million)

Towage & Salvage Eliminations (-28)

1,298.3

Dredging & Inland Infra

1,164.5 1,333.7

966.7 100.5 -28.3

Offshore Energy Towage & Salvage

967

121.4 -23.2

1,298

Eliminations

2,337.2

2,596.3

Total

283

2017

2016

REVENUE BY GEOGRAPHICAL AREA

498

North and South America Africa Middle East Australia / Asia Rest of Europe The Netherlands

(in EUR million)

85

497.8 856.5 359.0 256.4

The Netherlands Rest of Europe Australia / Asia

552.2

256

1,078.6

283.7 134.6 232.6 314.6

Middle East

84.8

Africa

359

282.7

North and South America

856

2,337.2

2,596.3

Total