Boskalis to report impairment charge

Boskalis says that this charge is almost entirely related to the services part of Boskalis' offshore oil and gas activities, with more than EUR365 million (USD387.40 million) related to an impairment of vessels, more than EUR380 million (USD403.4 million) relating to goodwill and approximately EUR90 million (USD95.5 million) to Smit Lamnalco.

The company notes that in some of its service-related offshore energy market segments there is a structural imbalance between supply and demand, particularly in the heavy marine transport segment. It adds that this has put utilisation rates and margins under pressure, resulting in a non-cash impairment of both the value of the vessels that operate at the lower end of the market and the goodwill.

A large part of the impairment relates to the Dockwise activities acquired in 2013 and the Dockwise vessels in the lower end of the market.

Boskalis reports that its financial position continues to be strong, even after this impairment and adds that at the end of 2016 the company was net debt-free with more than EUR900 million (USD955.3 million) in cash on its balance sheet.

The solvency ratio at year-end exceeded 55 percent, which Boskalis reports comfortably meets the covenants agreed with its debt providers.

Boskalis will publish its annual results for 2016 on March 8, 2017, as well as a strategic update for the 2017-2019 period. This update will reflect on matters including interesting opportunities Boskalis sees at the high end of the offshore energy market.

HLPFI readers will recall that last Autumn, Boskalis confirmed that it will take 24 vessels out of service over the next two years, in light of ongoing uncertainties caused by continuing low energy and commodity prices alongside a sharp fall in the volume of work in the market.

copyright: Boskalis

www.boskalis.com