Boskalis Annual Report 2020
Key achievements in 2020: As a consequence of the COVID-19 outbreak, Boskalis further sharpened its strong focus on cash management. This included limiting non-project-related expenditure and optimizing working capital to preserve the strong financial position. Capital allocation decisions were also reviewed resulting in a nearly halving of the original capital expenditure plan for 2020, the decision to not pay-out the financial year 2019 dividend and the temporarily suspension of the share buyback program. These measures had a positive effect on cash flow of approximately EUR 300 million and contributed to a strong net cash position. Boskalis financed its mega suction cutter dredger Krios through an innovative Export Credit Agency (ECA) covered loan, the first ECA insured loan of its kind in the Netherlands. With this EUR 121 million facility, Boskalis refinanced a substantial part of the construction costs of the Krios. Besides an attractive all-in rate of slightly less than one percent, the long duration of the facility matches extremely well with the long economic lifetime of the vessel. There are various ways in which we can grow the business and we will consider our options as and when opportunities arise. Ways of expanding include building new assets, although this will only be considered for unique assets that cannot be purchased second-hand, or by buying existing assets in the market. Key achievements in 2020: The Krios, a sister vessel to the mega cutter suction dredger Helios, was delivered late 2020. With these two state-of-the-art cutters, Boskalis has completed its cutter fleet rejuvenation SUSTAINABLE GROWTH Invest in differentiating assets
program which included a review and rationalization of the old cutter fleet. During 2020, the conversion and development of the unique 4,000-ton crane vessel Bokalift 2 was ongoing and is expected to be completed in 2021. This vessel will initially be deployed for wind turbine foundations. In January 2021, the multipurpose DP2 offshore construction vessel BOKA Tiamat was added to our offshore fleet. The vessel will be deployed on offshore wind projects in Taiwan. The vessel underwent a retrofit which allows reduced fuel consumption and emissions. A brand new supply vessel has been modified into a state-of- the-art geophysical survey vessel, the Ocean Resolution, which entered service in February 2021. Early 2021, another platform supply vessel was acquired from the market that will also be modified into a survey vessel. As of 2020, Boskalis holds all of the shares in the Horizon Group. With the full control over Horizon, Boskalis has strengthened its position in marine survey and together with Gardline is capable of serving clients from the US East coast through to Asia. In April 2020, Boskalis acquired the maritime emergency response specialist Ardent Americas LLC. Through this acquisition Boskalis further strengthens its existing position in the US maritime salvage market. Late 2020, Boskalis acquired Rever Offshore’s subsea services business. The Aberdeen based company with its two large diving support vessels will be combined with Boskalis’ existing subsea activities. On the important North Sea subsea market, Boskalis is now a solid top three player opening up ample opportunities for operational efficiencies and synergies.
The BOKA Vanguard loaded with the nearly 70,000-ton Argos floating production unit
ANNUAL REPORT 2020 – BOSKALIS
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