Towage: towage services and berthing and unberthing of oceangoing vessels in ports and at offshore terminals, management and maintenance both above and below the surface of onshore and offshore oil and gas terminals and associated maritime and management services. Salvage: providing assistance to vessels in distress, wreck removal, environmental care services and consultancy.
TOWAGE & SALVAGE
(in EUR million)
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Result from JVs and associates
Operating result (EBIT)
Order book at year end
Revenue at the Towage & Salvage segment rose in 2015 to EUR 294.9 million (2014: EUR 270.6 million). The increase was wholly attributable to a busy year at Salvage.
Revenue at Towage declined in 2015 as a result of the strategy to transfer these activities into joint ventures wherever possible. From the third quarter of 2014 the harbour towage activities in North and South America are carried out in joint venture with SAAM S.A. of Chile and have been deconsolidated in accordance with IFRS11.
In 2015 Boskalis – operating under the name SMIT Towage Northwest Europe– provided towage services in the ports of Rotterdam and Liverpool as well as ports in Belgium. On balance, the level of activities remained virtually stable.
Salvage had a very busy year with a large number of wreck removal operations. In addition to the removal of the sunken car carrier Baltic Ace in the North Sea and the removal of a jack-up platform off the coast of Angola, SMIT Salvage was kept busy with work including the salvage of capsized jack-up platforms in Mexico and Qatar
EBITDA in the Towage & Salvage segment totaled EUR 96.2 million and the operating result was EUR 79.1 million (2014: EUR 118.6 million and EUR 84.0 million, respectively).
There was a decline in the result at Towage, mainly as a result of deconsolidation effects. The result at Salvage was positively impacted by the execution of the aforementioned projects as well as by customary settlement effects from previously completed emergency response projects.
The result includes our stake in the net profit of joint ventures and associated companies, primarily Keppel Smit Towage (KST), Smit Lamnalco and Saam Smit Towage. The contribution of these activities was EUR 36.3 million (2014: EUR 38.3 million). The contribution to the result from Keppel Smit Towage and Smit Lamnalco was lower due to a combination of weak market conditions in both the spot market and long-term contracts as well as an impairment charge at KST.
At end-2015 the order book, excluding our share in the order book of joint ventures and associated companies, stood at EUR 7.9 million (end-2014: EUR 63.9 million). On balance, EUR 133.1 million of work was contracted in the course of the year. The order book relates solely to the Salvage activities.