Boskalis completes fleet rationalization study
July 08 2016 - 8:30AM
Papendrecht, 8 July 2016
Royal Boskalis Westminster N.V.
(Boskalis) announces that it has completed its fleet
rationalization study announced earlier this year. The study was
initiated in light of deteriorating market conditions and an
expected prolonged period of low energy and commodity prices. Based
on the results of the study it has been decided to take 24 vessels
out of service in the coming two years. This will result in the
loss of approximately 650 jobs worldwide during this
period.
Peter Berdowski, CEO Boskalis:
"After a few very busy years the market outlook
for Boskalis has changed drastically as a result of continuing low
energy and commodity prices. The volume of work in the market has
fallen sharply and this is putting pressure on the utilization rate
of our vessels. Because we expect these market conditions to
persist in the coming years it is essential that we adapt the size
and composition of our fleet to this new reality. We are fully
aware that this intended decision is drastic and that it will have
a major social impact. While we will try to absorb the work force
reduction through attrition and redeployment wherever possible,
compulsory redundancies unfortunately look to be unavoidable. A
reduction of the number of vessels and jobs is however necessary to
ensure that Boskalis remains healthy going forward."
With the completion of the study the decision has
been made to take 24 vessels out of service in the 2016-2018
period, of which ten at the Dredging division and fourteen at the
Offshore Energy division. These will include trailing suction
hopper dredgers, cutter suction dredgers, anchor handling tugs and
heavy transport vessels. The fleet rationalization will be
implemented through the scrapping, sale and lay-up of vessels. The
average age of the vessels earmarked for scrapping or sale is in
excess of 30 years. Vessels offered for scrapping will be
dismantled at certified shipyards in accordance with the Hong Kong
Convention and Boskalis' own standards.
The fleet rationalization will also have
implications for the workforce, with a total of around
650 employees to be made redundant. In terms of composition it
concerns a cross-section of nationalities, with around 150 Dutch
staff on Dutch payroll being affected. Where possible the workforce
reduction will be absorbed through attrition and redeployment.
Despite this, compulsory redundancies cannot be ruled out. Boskalis
has requested the formal opinion of the Dutch Works Council and
will invite the trade unions to consult on a social plan in the
short term.
The fleet rationalization has no implications for
Boskalis' strategy, which is aimed at benefitting from key
macroeconomic factors that drive worldwide demand in our markets:
expansion of the global economy, increase in energy consumption,
global population growth and the challenges associated with climate
change.
For further information
Investor relations:
Martijn L.D. Schuttevâer
ir@boskalis.com
Press:
Arno Schikker
press@boskalis.com
T +31 78 6969310
This is an
English translation of the Dutch press release. In the event of any
disparity between the Dutch original and this translation, the
Dutch text will prevail.
Royal Boskalis
Westminster N.V. is a leading global services provider operating in
the dredging, maritime infrastructure and maritime services
sectors. The company provides creative and innovative all-round
solutions to infrastructural challenges in the maritime, coastal
and delta regions of the world with services including the
construction and maintenance of ports and waterways, land
reclamation, coastal defense and riverbank protection. In addition,
Boskalis offers a wide variety of marine services and contracting
for the oil and gas sector and offshore wind industry as well as
salvage solutions (SMIT Salvage). Furthermore, Boskalis has a
number of strategic partnerships in harbour towage and terminal
services (KOTUG SMIT Towage, Keppel Smit Towage, Saam Smit Towage
and Smit Lamnalco). With a versatile fleet of 1,000 units Boskalis
operates in around 75 countries across six continents. Boskalis has
over 8,200 employees, excluding its share in
partnerships.
This press release can also be found on our
website www.boskalis.com.
pdf version press release
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Koninklijke Boskalis Westminster N.V. via
Globenewswire
HUG#2027431
Royl.Boskalis (LSE:BOKA)
Historical Stock Chart
From Apr 2024 to May 2024
Royl.Boskalis (LSE:BOKA)
Historical Stock Chart
From May 2023 to May 2024