Boskalis_Annual Report_2017

ANNUAL REPORT 2017 – BOSKALIS 35

DREDGING & INLAND INFRA Construction, maintenance and deepening of ports and waterways, land reclamation, coastal defense and riverbank protection, underwater rock fragmentation and the extraction of minerals using dredging techniques. Construction of roads and railroads, bridges, aqueducts, viaducts and tunnels including earthmoving, soil improvement and remediation – mainly in the Netherlands.

pipeline trenching work in Abu Dhabi (UAE). Activities related to the Pluit project in Jakarta Bay (Indonesia) that were suspended in early 2016 are not expected to recommence before the end of 2018. FLEET DEVELOPMENTS Utilization of the hopper and cutter fleet was considerably higher than in 2016. The hopper fleet had an effective annual utilization rate of 35 weeks (2016: 27 weeks), with the cutter fleet utilization rate at 14 weeks (2016: 9 weeks). The new mega cutter Helios was named and christened on 1 July and its maiden project was on the construction of the Offshore Center Maasvlakte 2 in the port of Rotterdam, the Netherlands. The Helios was subsequently mobilized to Oman, where the vessel will work on the Duqm port development project. The Helios is the largest and most powerful cutter suction dredger in the fleet with a total installed power of almost 24,000 kW, a total pumping capacity of 15,600 kW and a maximum cutter power of 7,000 kW. In 2017 Boskalis ordered a sister vessel of the Helios at IHC, which is expected to be taken into service in the course of 2020. SEGMENT RESULT Dredging & Inland Infra achieved an EBITDA of EUR 219.1 million, with an operating result of EUR 110.5 million (2016: EUR 223.0 million and EUR 119.7 million, respectively). The project results were a reflection of the challenging market conditions. 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. Such settlements are not uncommon, although size and timing is unpredictable. The Dutch Inland Infra activities delivered a positive contribution to the result. The segment result includes our share in the net result of joint ventures and associated companies. The contribution from these activities was EUR 3.6 million (2016: EUR 3.6 million). ORDER BOOK At the end of the year, the order book stood at EUR 2,477 million (end-2016: EUR 1,893 million). The order book for the Rest of the World increased signifcantly with the most noteworthy contract wins being the development of the port of Duqm (Oman), a multi-year maintenance contract in the Middle East and the deepening of the access channel to Jawaharlal Nehru Port in Mumbai (India). Other contract wins include port related contracts in Angola, Australia, Brazil, Nigeria, Uruguay and Mexico, in addition to variation orders on existing contracts. On balance EUR 1,883 million of new work was acquired during the course of the year. After the close of the year, Boskalis was awarded a large multi-year dredging project for the Tuas Terminal Phase II port development in Singapore. This project will be executed in a consortium with Hyundai and Penta Ocean.

2017

2016

DREDGING & INLAND INFRA

(in EUR million) Revenue

1,298.3

1,164.5

219.1

EBITDA

223.0

3.6

Net result from JVs and associates

3.6

110.5

Operating result

119.7

2,477.4

Order book at year-end

1,892.5

EBITDA and operating result include our share in the net result of the joint ventures and associated companies. 2016 EBITDA and Operating result are presented excluding impairment charges.

REVENUE Revenue in the Dredging & Inland Infra segment amounted to EUR 1,298 million (2016: EUR 1,165 million).

2017

2016

REVENUE BY MARKET

(in EUR million) The Netherlands Rest of Europe Rest of the world

473.2 253.7 571.5

465.9 272.7 425.9

1,298.3

1,164.5

Total

The Netherlands In 2017 revenue in the Dutch market was stable at EUR 473.2 million. A lot of work was performed on the Buitenring Parkstad Limburg and SAAone (A1-A6 motorway) projects. SAAone was successfully completed in the course of the second half of the year. The Wadden Sea dike reinforcement on the island of Texel, as well as work related to the Room for the River projects contributed to the revenue, in addition to the second phase of the construction of the Marker Wadden nature reserve islands. Rest of Europe Revenue in the rest of Europe amounted to EUR 253.7 million. The largest contribution came from the UK market, including the completion of the Portsmouth channel and inner harbor dredging project, the deepening of Peterhead harbor and the redevelopment of the Dover Western Docks. In the other European home markets (Germany, Sweden and Finland) numerous port-related capital and maintenance projects were executed.

Rest of the world Outside of Europe, revenue increased strongly to

EUR 571.5 million. Important projects under execution included the expansion of the Porto do Açu Oil Transshipment Terminal (Brazil), reclamation activities in Makassar (Indonesia), the deepening of the access channel to the Jawaharlal Nehru Port in Mumbai (India), the development of the port of Duqm (Oman) and