Dredging giant's record profit despite Dubai downturn

ORDER BOOK: Boskalis won a contract for Port Rashid in Dubai in 2008 but the company has cleared all jobs in the emirate from its order book.

Dredging giant Boskalis Westminster has posted record earnings and revenues in 2008 despite having to clear its order book of $585 million of projects at risk, including all its work in Dubai.

Company chiefs also warned that its 2008 performance will be followed by a downturn in the dredging and maritime infrastructure markets this year.

“After years of boisterous growth we are set for a period of stagnation,” said Peter Berdowski, CEO of the world’s biggest dredger of harbours and waterways.

The Dutch group boosted 2008 net profit by 15 percent from the previous year to $324 million on revenues 12 percent higher at $2.7 billion.

Boskalis cleared its order book of $585 million of projects at risk of cancellation or delay, including all work in Dubai. It booked $3 billion of new contracts in 2008 leaving the value of its order book broadly unchanged at $4.4 billion, Berdowski added.

In July, the company was awarded a contract from Nakheel for the redevelopment of Port Rashid in Dubai.

Boskalis was due to execute the project in a 50/50 partnership with the Belgian dredging company DEME. The contract was worth about $544 million, with the share of Boskalis amounting to approximately $272 million.

After record growth in the first half of 2008, the market changed “drastically” in the final quarter, Berdowski said.

The company is also mulling decommissioning older ships and taking out more costs as the market contracts.

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