Boskalis' net profit came on a turnover of ? 412m while new orders acquired in the first half totalled ? 426m, keeping the order book stable at ? 1.1 billion.

Turnover fell both inside and outside Europe, with the exception of the Middle East. Market demand and turnover were both down on last year in all home markets although turnover rose from ? 148m to ? 207m on the international market, mainly because of a larger contribution to turnover from Archirodon in the Middle East.

Boskalis describes the principal features of the international dredging market at present as cautious government spending in Europe, low prices for large international projects, continuing blocked sand supplies from Malaysia and Indonesia halting major land reclamation works in Singapore, high fuel prices and a low American dollar. As a result, recovery is not expected before next year.

However, the longer term outlook is described more favourably, with pent up demand for shoreline infrastructure building, an eventual improvement of relations between Singapore, Malaysia and Indonesia and major new European projects in the pipeline, led by now approved works forthcoming for Maasvlakte 2 at the Port of Rotterdam.

MJ Information No: 19843