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Boskalis jaarverslagen 2012

Other financial information

Depreciation, amortization and impairments totaled EUR 334 million (2012: EUR 231 million). EUR 90 million of the increase compared to 2012 was due to the consolidation of Dockwise (including PPA effects), EUR 22.1 million for impairment charges on intangible assets (2012: nil) and EUR 17.3 million for impairment charges on property, plant and equipment (2012: EUR 4.1 million).

The result from associated companies was EUR 20.2 million (2012: EUR 0.3 million) and mainly concerned Dockwise. The result includes a gain of EUR 22.7 million relating to the revaluation of the stake in Dockwise held directly prior to the offer being declared unconditional. This revaluation result concerns the difference between the valuation of the stake based on the offer price and the valuation based on the purchase price. The result from associated companies also includes the share in the Dockwise result for the first quarter of the year under review based on an average stake of 39.1%. This result was a negative EUR 3.7 million due to one-off costs recognized by Dockwise associated with the acquisition.

The tax burden increased during the year under review to EUR 64.4 million (2012: EUR 49.5 million). The effective tax rate fell to 15.0% (2012: 16.4%). The results from the activities of Dockwise are largely taxed at a low rate under a special tax regime (tonnage tax). Moreover the book gain on the sale of the stake in Archirodon and the result from associated companies are tax-exempt.

Capital expenditure and balance sheet

During the reporting year a total of EUR 296 million was invested in property, plant and equipment. Important investments in the Dredging segment concerned reconstruction work on the mega hopper Fairway and the construction of three 4,500 m 3 hoppers to replace smaller hoppers already taken or scheduled to be taken out of service. The Causeway (the first of the 4,500 m 3 hoppers) was brought into service in the third quarter and the Fairway is expected to enter service in March 2014. At the end of the reporting year construction work started on a new mega cutter with total installed capacity of 23,700 kW. Investments in the Offshore Energy segment included the Ndurance and Ndeavor (new multifunctional cable laying/offshore services vessels), the Asian Hercules III (5,000 MT floating sheerlegs in the Asian Lift JV) and the White Marlin (Dockwise type I transport vessel). Delivery of the Ndurance and Ndeavor took place in the fourth quarter. Delivery of the White Marlin is expected in late 2014 with the new mega cutter following in 2017.

Towage & Salvage made various smaller investments during the year, for example in six new tugs for SMIT Brasil of which two were brought into service.

Capital expenditure commitments as at 31 December 2013, including Dockwise, were higher at EUR 324 million (end-2012: EUR 126 million), mainly as a result of the commitments in relation to the mega cutter.

Cash flow amounted to EUR 701 million (2012: EUR 483 million). The cash position at the end of the reporting year was EUR 411 million, of which EUR 29.7 million related to group companies which have been recognized under ‘Assets held for sale’ in connection with their intended transfer to the new joint ventures to be created with SAAM. The solvency ratio rose to 44.3% (end-2012: 39.2%).

The net debt position rose compared to the end of 2012 as a result of the acquisition of Dockwise. On that occasion a three-year loan of USD 525 million was taken out, EUR 290 million was drawn under a five-year revolving credit facility (EUR 500 million) and a USD 525 million bridging loan was taken out. The bridging loan was fully repaid at the beginning of the third quarter from the proceeds of a USD 325 million US Private Placement (USPP), USD 190 million in proceeds from the sale of the stake in Archirodon and existing cash resources.

The remaining interest-bearing debt totaled EUR 1,254 million at the end of the year under review, with EUR 59 million of this recognized under ‘Assets held for sale’. The net debt position stood at EUR 845 million. At the end of first half year interest-bearing debt still totaled EUR 1,745 million and the net debt position stood at EUR 1,376 million. The majority of the debt position consists of long-term US Private Placement loans and drawings on the three-and five-year syndicated bank facility taken out as part of the Dockwise acquisition financing package. Boskalis must comply with various covenants as agreed with the syndicate of banks and the USPP investors. These agreements were comfortably met as at the end of the financial year. The main covenants relate to the net debt : EBITDA ratio, with a limit of 3, and the EBITDA : net interest ratio, with a minimum of 4. At year-end the net debt : EBITDA ratio stood at 1.1 and the EBITDA : net interest ratio at 11.8.

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