Boskalis Annual Report 2020

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6. REVENUE Revenue by region can be specified as follows:

REVENUE

2019

2020

The Netherlands Rest of Europe Australia / Asia

619,310 919,469 433,525 357,485 88,255 226,556

581,256 893,183 456,828 244,113 97,397 252,134

Middle East

Africa

North and South America

2,644,600

2,524,911

A region is determined as the location at which projects are realized and services are provided. For sea transport the region refers to the port of arrival (or nearest point of arrival) of the transport or the project location for offshore installation. A large part of the Group’s revenue is generated on projects for a variety of clients in various countries and geographical areas. Because of the often-incidental nature and spread of the contracts none of these clients qualifies structurally as a material client in relation to the total revenue of the Group.

Revenue by activity can be specified as follows:

REVENUE

2019

2020

Contracting activities

2,217,671

1,982,019

Service activities

426,929

542,892

2,644,600

2,524,911

Revenue from contracting activities mainly comprises net revenue from the operational segments of Dredging & Inland Infra and Offshore Energy (excluding marine transport and other offshore services), and salvage projects. For most of the contracting activities the most common type of contract is based on a fixed/lump sum price. In these cases, the contractor’s price must take into account virtually all the operational risks as well as the costs and other risks associated with the procurement of materials and subcontractor services. In most cases it is not possible to charge clients for any unforeseen costs and the Group acts as contractor and principal of the engagement. Revenue from services rendered is primarily realized in the Offshore Energy (marine transport and other services) operational segment and in the joint ventures within the Towage & Salvage operational segment. The services are usually charged at day rates. Contracts are not included in the order book until agreement has been reached with the client. The Group estimates that 38% of the order book will be executed next year (31 December 2019: 44%). Actual execution depends on several factors, such as weather, soil, technical conditions, cooperation with subcontractors, the availability of cargo and other factors. 7. OTHER INCOME AND OTHER EXPENSES In 2020 other income includes a gain of EUR 1.4 million as a result from the revaluation to fair value of the existing stake in Horizon (note 5.1) and a gain on acquisition regarding the business combination Rever Offshore of EUR 6.2 million (note 5.2). Further, other income includes government support relating COVID-19 for an amount of EUR 0.6 million. The other income also includes book profits on the disposal of property, plant and equipment for EUR 8.8 million (2019: EUR 7.2 million). Other expenses relate to book losses on the disposal of equipment, amounting to EUR 0.3 million (2019: EUR 0.5 million). In 2019 other income included the book result on the disposal of assets, the gain on the acquisition of Bohlen & Doyen and a profit from the sale of SAAone PPP B.V. With this SAAone transaction the Group divested its financial interests in one operational DBFM project in the Netherlands. The value of the order book equals the contract revenue of projects yet to be completed and services yet to be rendered at balance sheet date and amounts to EUR 5.3 billion (2019: EUR 4.7 billion).

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS