November 11 - Royal Boskalis Westminster (Boskalis) closed its third quarter of 2016 in line with expectations.
Both revenue and operating profit were higher than the average seen in the first two quarters of the year, but the increase was wholly attributable to the contribution from the offshore activities acquired from VolkerWessels, which are consolidated with effect from the third quarter.
Adjusted for these activities there was a slight decline in revenue and operating profit compared to the average seen in the first two quarters of the year.
Adjusted for acquisitions there was a substantial decline in revenue and operating profit compared to the third quarter of last year, in line with expectations. 2015 as a whole was an exceptionally good year with high fleet utilisation and particularly good project margins.
The company says that market conditions remain persistently difficult in the capacity-driven service-related activities of Offshore Energy, in which its Dockwise subsidiary is situated, putting pressure on volumes and prices.
The expectations for the remainder of the year remain unchanged. For 2016 as a whole Boskalis expects the operating net profit in the second half to approach the level achieved in the first half of the year.
An improved third quarter in the Offshore Energy division was largely due to the contribution from the offshore activities acquired from VolkerWessels, and without that the revenue and the result would have been slightly lower compared to the average seen in the first two quarters of the year.
At the beginning of July, Boskalis announced a fleet rationalisation programme, which is now being implemented over the next two years. It involves 24 unspecified vessels being taken out of service and the loss of 650 jobs, with 200 positions already been removed.