Boskalis_Annual Report_2017

ANNUAL REPORT 2017 – BOSKALIS 4 CHAIRMAN’S STATEMENT CHAIRMAN’S STATEMENT At the beginning of 2017 we presented our new Corporate Business Plan for 2017-2019 in which we indicated that we did not expect to see a substantial recovery of our markets in this period. 2017 progressed in line with these expectations. In order to further align the company to these market conditions, we adjusted the organization at head office. We closed the year with revenue of EUR 2.3 billion and a net profit of EUR 150 million. A positive development was a rise in the order book to EUR 3.5 billion. Despite a decline in the result, we are still generating a healthy EBITDA of EUR 437 million. Together with our robust balance sheet, this has put us in a position to selectively invest counter-cyclically in strengthening our business portfolio for the medium term. Based on our strong balance sheet and healthy cash flow, we are proposing a dividend of EUR 1.00 per share, underlining our confidence in the future.

Our Corporate Business Plan for 2017-2019 is based on three pillars: Focus, Optimize and Expand. An important part of this plan is aimed at capturing opportunities that present themselves in the current challenging operating environment. After all, depressed maritime markets create opportunities for our selective reinforcement, also as a foundation for the medium term when markets are expected to recover. In August, we acquired the renowned British survey specialist Gardline. With its fleet of 15 survey vessels, Gardline provides a solid basis on which we will expand our subsea survey activities. Furthermore, we added two high-end twin-bell SAT diving support vessels to our fleet in late 2017. These additions make Boskalis one of the leaders in the North Sea subsea services market. In this way, we are flling in the blanks in our range of activities at attractive prices and preparing the company for the future. DREDGING & INLAND INFRA In 2017, we managed to increase the Dredging order book with a number of meaningful contract wins. In January we received a EUR 480 million LOI for the development of the port of Duqm in Oman. This regards an EPC contract to build a bulk liquid berth terminal, entailing a substantial volume of dredging and civil engineering work. As largest project in the portfolio, Duqm will keep our recently commissioned new mega cutter Helios busy in the coming year. In the course of 2017 we also secured a EUR 250 million contract with a partner for the expansion of Jawaharlal Nehru Port in Mumbai, India’s largest container port, as well as a 10-year, EUR 260 million dredging maintenance contract in the Middle East. DEVELOPMENTS IN CORE ACTIVITIES