Annual r eport 2002 Annual r eport 2002 - Boskalis

Report of the Board of Management on 2002
Report of the Board of Management on 2002
INTRODUCTION
After years of strong growth, it became clear in the second half of 2002 that the consequences of
economic stagnation and geopolitical uncertainty were also being felt in the markets for maritime
infrastructure. Nevertheless, 2002 was a year in which Boskalis was very active. Utilization of the
fleet was again above-average, many projects were successfully completed and good progress
was made with programs of innovation, fleet extension and fleet modernization. The past year was
satisfactory, both in terms of the financial results, and policy and operational matters.
FINANCIAL AFFAIRS
Results and cash flow
The results for 2002 were in accordance with expectations. Activities picked up slowly in the first half
of the year in a few market segments (Scandinavia, Mexico and the Middle East) and the consequences
of the sand problems in Singapore were clearly felt in the second half of the year. Nevertheless, turnover
(completed contracts) was higher than in 2001 and a net result was achieved of € 82.1 million, more
than 5% higher than in the previous year (€ 77.7 million).
Net result
This was mainly due to healthy margins on completed contracts, good fleet utilization and good
(x € 1 million)
contributions from Archirodon (30%) and associated company Lamnalco.
90
80
78
82
Depreciation on fixed assets increased in 2002 as a result of investments in replacements and new
70
60
58
67
equipment amounting to € 66.6 million (2001: € 62.2 million).
50
40
30
20
10
0
47
40
37
35
32
28
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
On balance, the operating result in 2002 increased to € 99.5 million (2001: € 97.7 million). In addition
to good results, both in the home markets and on the international projects market, this increase was
achieved thanks to the contribution from Archirodon and the completion of contracts that were carried
out in part in previous years. The ratio of the operating result to turnover (completed contracts) was
8.9% (2001: 9.0%).
Cash flow
(x € 1 million)
149
150
140
140
130
122
120
112
110
100
93
88
90
85
80 75
78
71
70
60
50
40
30
20
10
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
The result from associated companies increased to € 9.8 million (2001: € 5.7 million). The largest
associated company, Lamnalco, which is primarily active in the Middle East and Nigeria in harbor and
offshore services, had another excellent year, in which the fruits were plucked of the investments in
equipment made in 2001.
Net interest revenues in 2002 were € 0.7 million (2001: € 3.4 million). The lower net revenues were
caused by a lower liquidity position, primarily as a result of an intensive investment program.
Taxation decreased to € 27.9 million (2001: € 29.1 million), which implies a tax rate of 25.4% (2001: 27.3%).
Cash flow in 2002 rose to € 148.7 million (2001: € 139.9 million).
30
Annual Report 2002