H1 2006 figures, announced 17 August, showed group net profits up 57% to EUR 29.7m, from EUR 18.8m in H1 2005. Operating profits for the firm’s transport and heavy lifting division rose to EUR 13.4m, from EUR 2.2m, year on year. Reuters Estimates reports that analysts are, on average, expecting Smit to achieve a net profit of EUR 46.3 million for the full year.
The company noted that while transport and heavy lifting had shown a return on average capital employed of 75.7%, against an objective of 15%, this had been highly inflated due to the recent – late 2005 – start of a planned investment programme, contributing to low levels of depreciation. The division plans to buy ten new work vessels over the next two years, and has concluded long-term contracts for five of them. As of March 1, 2006, the firm owned nine sheerleg lifting barges, with capacities from 400-3,000t.
The firm’s harbour towage division also showed strong growth, with operating profits up 33.9% to EUR 15m, despite a EUR 4.1m one off charge. The terminals division saw a drop in net profits to EUR 5.6m, from EUR 7.7m, due in part to higher pensions costs and the loss of a contract in the last quarter of 2005. Salvage saw operating profits fall to EUR 1.2m from EUR 3.8m, with workloads for the period low – the firm noted that this sector is unpredictable, and stated its aim is to continue to maintain a 25-30% market share.
The firm also took the opportunity of the results to announce that CFO W. H. Kanis will retire at the end of the year, after 25 years with the company. He will be replaced by I.G.M. Verbruggen. Verbruggen has been CFO of ISS Nederland BV, a leading worldwide facility services provider, for the last five years. He has also worked for Shell for 15 years in various functions.