August 19 - Royal Boskalis Westminster NV realised a net profit of EUR123.9 million (USD159.3) in the first half of 2010, up from EUR102.7 million (USD132.1) in the first half of 2009.
The profit contribution from Smit Internationale N.V. ("SMIT"), excluding interest expenses on the acquisition finance but including all other effects related to the transaction, was EUR9.5 million (USD12.2)
Revenue increased to EUR1,135 million (USD1,459).
The merger with SMIT came into effect at the beginning of the second quarter and the revenue contribution of these activities was EUR160 million (USD205). Excluding the consolidation effect of SMIT, revenue in the first half of the year was EUR975 million (USD1,254) - first half of 2009: EUR989 million (USD1,272).
On balance the result of SMIT was lower than in the comparable period last year. For the Transport & Heavy Lift activities a weaker market for spot contracts mainly from the oil and gas industry led to a drop in the result.
Peter Berdowski, CEO: "Our earnings also reflect the contribution from the SMIT activities. Following the merger, we prepared the integration process. The outcome of this process is that we see substantial market and cost synergies for the coming years.
In the Transport & Heavy Lift sector, the group's focus is mainly on signs of upturn in the spot market. A convincing recovery of the global economy and high oil prices are key factors in this respect.
Barring unforeseen circumstances the Board of Management expects reported full-year net profit for 2010 to be 10-15 percent higher than reported net profit in 2009. The synergies resulting from the SMIT merger are estimated at EUR15-20 million (USD19-25) per annum pre tax and will gradually be realised starting in 2011 over a two to three year period.