Smit announce record profits

Results achieved by associated companies increased 49% from €22.7m to €33.9m. Net earnings per share increased 37% from €4.86 to €6.68.Smit CEO Ben Vree commented, ‘The strategy pursued so far continues to prove its worth across all four divisions. The activities’ mutual synergy made a substantial contribution to this. The Salvage and Transport & Heavy Lift Divisions have seen an exceptionally high volume of work. The Terminals Division reaped commercial success with the renewal and increase of its long term contracts. In order to continue Smit’s growth in a stable manner, significant investments as part of a new construction programme are being made. This will lead to a reduction of the average age of the vessels and expansion of the fleet. Our associated companies and a number of acquisitions completed during 2007 made worthy contributions to the result as well. The future is looking bright!’

For 2008 Smit expects the results to remain at a historically high level whilst taking into consideration the volatile nature of the Salvage Division in particular.

In a later statement in May 2008, Smit announced that it is to raise its growth targets. For the towage and terminals sector it reads: ‘Harbour Towage – The target set for in 2005 for growth in net profit was amply exceeded last year. The new target has been set at 50% growth over a five year period. For this purpose the baseline year of 2007 was normalised because of the acquisition of the Adsteam activities in Liverpool in March 2007 and the complete takeover of URS in Antwerp in early 2008. The normalised result for 2007 was €43m. The target return remains a ROACE of 15%.

‘Terminals – The growth target in net profit, set in 2003 for the Terminals Division, was also amply exceeded last year, in spite of the transfer of the subsea activities to Transport & Heavy Lift. Because the target was exceeded and also in the light of recently acquired new contracts which will contribute to profits in the years to come, SMIT has set a new target for growth in net profit of 100% over a five year period (baseline year 2007). The target return remains a ROACE of 15%’