The Netherlands: H.E.S. Beheer Reveals Half-Year Results

H.E.S. Beheer N.V., Rotterdam, posted a net profit of €11.5 million in the first half of this year (first half 2011: €11.0 million). Earnings per share rose from €1.26 to €1.31.

The €0.5 million improvement in the net profit is attributable to improved performance overall on the part of the subsidiaries, associates and joint ventures and the increased beneficial ownership of EMO, OVET and OBA as a consequence of the recent acquisition of 22% in ATIC Services, which in turn has interests in these companies. OBA (economic interest 73.8%) and the UK subsidiary NHBS performed particularly strongly. The contributions from OVET (economic interest 47.7%) and EMO (economic interest 36.6%) were also higher although, in the case of EMO, this was solely due to the increase in beneficial ownership. The contribution from subsidiary EBS was the same as last year. The contributions from the other companies were lower on account of start-up costs or owing to reduced performance. The operating result plus the share in the results of associates improved from €11.5 million to €13.7 million.

The rolling 12-month figures (for the period 1 July 2011– 30 June 2012) show further growth in net profit to €24.8 million (1 July 2010–30 June 2011: €23.0 million).

The coal market, HES Beheer’s most important market, developed favourably, exhibiting further significant expansion, but volumes of industrial minerals received fell relatively sharply and the agribulk and biomass volumes were slightly down on last year’s levels. The total volume of dry bulk products received was fractionally lower. There was, however, a sharp rise in the volume of oil products received, following the start of operations at Botlek Tank Terminal (HES interest 50%). On a proportionate basis, the bulk cargo volumes received by HES Beheer’s various subsidiaries, joint ventures and associates in the first six months were 10% higher than in the first half of 2011, as a result of the increased beneficial ownership of three associates and the entry into the liquid bulk market. Capacity utilisation of the ample storage facilities showed a mixed picture but was satisfactory overall. Income from storage operations continued to increase and accounted for around 30% of the revenue.

Consolidated revenue grew from €37.8 million to €42.8 million, an increase of 13.2%. Operating expenses were up by 12.7%, owing to increased staff costs and higher other operating expenses.

The capital ratio as at the end of June was 52.4%, compared with 53.0% as at 31 December 2011, with a balance sheet total of €207 million (year-end 2011: €197 million). Shareholders’ equity rose from €104 million as at 31 December 2011 to €109 million as at 30 June 2012.

The management confirms its previous statements regarding the result for the full year. Given current expectations for the economy in Germany and the Netherlands, both revenue and profit are expected to grow. This growth will be mainly driven by the forecast higher sales, efficiency improvements and the recent expansions in dry bulk and liquid bulk.

Continued optimism for the future

The medium-term prospects, too, remain as good as ever. This expectation is largely based on the expected growth in coal imports and the planned further expansion of the liquid bulk operations. On top of that, there is still plenty of scope for gradual improvements in efficiency.

Newbuild projects well on track

– The conveyer system on EBS Laurenshaven’s new 4.8ha storage site has been completed. The new site, providing additional storage capacity of around 300,000t is well utilised.

– NHBS’s new No. 7 covered storage facility in North Lincolnshire has been completed. The new shed increases the effective storage capacity by approximately 20,000t. On 24 July, the first cargo was received into storage.

-EMO’s new 85t gantry crane is currently being erected, alongside the existing gantry cranes in the Mississippihaven basin. The new gantry crane and its associated conveyer system are expected to be ready for commissioning by the end of the year. This will increase discharge capacity at EMO by 10 million t/a, simultaneously bringing further improvements in efficiency and standard of service.

-The new loader for seagoing vessels and the 7th stacker/reclaimer at EMO are now almost fully operational.

– On behalf of the Port of Rotterdam, work starts in mid-August this year on the extension of the BTT site by approximately 5ha by filling in part of the harbour basin. When the reclaimed land is handed over in mid-2014, BTT will be able to build 550,000m3 of tank storage capacity on the site, possibly in phases. The environmental permit has already been obtained.

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Dredging Today Staff, July 25, 2012; Image: H.E.S. Beheer