Annual report 20108.31 MB - Boskalis

Financial performanceIn light of this, Boskalis will propose to the AnnualGeneral Meeting of Shareholders on 12 May 2011that a dividend of € 1.24 per share be distributed inthe form of ordinary shares, unless the shareholderopts to receive a cash dividend. The dividend willbe payable from 8 June 2011.and such like. The first synergy effects alreadybecame visible in 2010 with savings of around€ 10 million. We have therefore decided to raise oursynergy target. Based on the synergies achievedto date we now expect the annual level to reacharound € 25 million in the next two years.Other developmentsIntegration of SMITOn 27 March 2010 the merger with SMIT was afact. Right from the start a lot of work has gone intoshaping and substantiating the cooperation. Shortlyafter the merger a Steering Committee was set upcomprising the senior management of Boskalis andSMIT, including the Board of Management. TheSteering Committee heads up 10 working groups ofBoskalis and SMIT employees who have analyzedwhere the joint synergy opportunities lie, both in themarket and on the cost side, and how these canbe realized. They have exchanged best practicesand established which corporate staff activities andfunctions will be integrated. This analysis providesthe basis for the integration plan which will befurther implemented during 2011 and 2012.The two companies are already turning to eachother, for example when it comes to hiring eachother’s equipment, which results in cost synergieson the projects. This is happening for example onthe Maasvlakte 2 project in the Netherlands, whereSMIT equipment is being deployed by the PUMAconsortium. In addition Boskalis survey equipmentis in use on SMIT salvage projects in both Indonesiaand India.On releasing our half-year results we expected torealize annual synergies of € 15-20 million, mainly inthe form of cost savings, in the period 2011-2013.However, the synergies achieved to date are greaterthan expected. The combined purchasing powerof Boskalis and SMIT is creating more favorableconditions in procurement relating to the primaryprocesses, such as engine parts, lubricants, hiredservices, as well as in non-technical categoriessuch as insurance, office space, travel expensesNew Corporate Business PlanA new Corporate Business Plan has been draftedto create focus and cohesion within the group inits new composition, and to enable us to set theright priorities with regard to the various investmentopportunities. On Tuesday 5 April 2011 Boskaliswill present this strategy update at the BoskalisCapital Market Day and information regarding thenew strategy will be made available on the website.Event after the balance sheet dateRebras: At the publication of our semi-annualresults we announced that a conditional agreementhad been reached to increase the stake in theBrazilian Harbour Towage joint venture Rebras(Rebocadores do Brasil SA) from 50% to 100%.This transaction was completed recently.SMIT has been active in Brazil since 2006 whenthe joint venture with Rebras was first established.The volume of sea trade has grown significantlyin Brazil and the country has substantial offshoreinvestment plans that will further drive the demandfor towage services.Rebras currently provides services at the followingsix locations in Brazil: Santos, Paranaguá, Sepetiba(Itaguaí), Angra dos Reis, São Luis (Itaqui & Pontada Madeira) and Vitória (Tubarão & Praia Mole). Thecompany operates a fleet of 18 state-of-the-artASD (azimuth stern drive) tugs of 50-70 tons bollardpull, with another three tugs having been hired out.Almost all the 200 crew and staff members are ofBrazilian nationality, thus giving Boskalis a trulylocal footprint in the Brazilian growth market.Royal Boskalis Westminster nv45