Huge spending on dredging and maritime infrastructure projects in 2008 has propelled Royal Boskalis Westminster’s profits to new highs, with financial results published yesterday.
The company managed to build net profit to US$335 million in 2008, on the back of a record revenue stream totalling $2.8 billion.
The firm has benefited from massive energy-related dredging projects, and has recently secured several major oil- and gas-related contracts for projects in the Middle East and Europe. (LINK)
A recent deal focuses on an offshore infrastructure contract for Saudi Aramco. Dredging work for an oil pipeline shore approach from the Safaniyah offshore field to the mainland of Saudi Arabia will be executed this year.
“2008 has been the best year in our history, with record revenue and profit. We were able to reap the fruits of the strategy we pursued in previous years,” said Peter Berdowski, company CEO.
“However, 2008 was also a year with two faces. A year in which the first half was characterized by boisterous market growth, while the final quarter saw the global economic stage – and with it the landscape of the dredging industry – change drastically.”
Berdowski singled out the energy remit of its business for particular mention. “The price of oil rose to an unprecedented level and the prices of iron ore and other natural resources also continued to rise strongly. Growing demand for energy and natural resources propelled the need for dredging projects for the oil and gas industry and the development of new ports,” he said.
Despite the expected reduction in core project spend, the CEO said that the future remained bright for the dredging sector.
“On a positive note, amidst all these developments our order book is well-filled and broadly spread, resulting in sound fleet utilization levels for 2009 and even part of 2010.”
Looking forward, the company expects to maintain slated investments in its fleet between $270 million to $330 million per year.
