When surveying the prospects for 2005 during a New Year gathering at dredging contractor Royal Boskalis Westminster nv., chairman of the Board of Management, Rob van Gelder, spoke about a year of possible recovery. Van Gelder envisages a substantial supply of work on the international dredging market, particularly in the Middle East, but still having modest margins for the time being. As regards the European home markets, modest government spending would again have to be taken into account and therefore fierce competition and pressure on margins. In addition, it is still uncertain when the land reclamation works in Singapore – which are still at a halt due to obstruction of the sand supply from Malaysia and Indonesia – can be resumed. A resumption of that work could benefit operations.

As a result of the organizational adjustments introduced in the past year, Boskalis will be able to make considerable savings in 2005, with satisfactory capacity utilization and a healthy cash flow being expected. Investments will be considerably lower than in previous years now that the outlines of the hopper fleet renewal and expansion plan have been completed.

Looking back on 2004, Van Gelder said that there was fierce competition and competitive pricing. From a financial point of view, the 2004 results were modest. Van Gelder confirmed the previously stated expectation of a turnover of approximately € 1 billion and a net result of € 20 - 25 million. At present, the larger ships are mainly engaged in short-term projects with low price levels.

As Rob Van Gelder explained, “2004 was difficult. With respect to the results, the low point seems to have been reached, and I envisage a rising trend in 2005. However, we will have to work hard in order to recover.”

Van Gelder emphasized that the long-term prospects are favourable. The need for infrastructure around the waterline is directly related to developments relating to the global volume of trade, tourism, world population growth and the shortage of space in densely populated coastal regions.

Boskalis will publish its annual results for 2005 on March 15, 2005.