Financial News
Boskalis stock price erupts 14% as H1 profit tops estimates
Shares of Boskalis Westmin (AMS: BOKA), the Dutch dredging and heavy-lift company, soared around 14% higher after the company reported that its 2020 core profit matched last year’s reports, therefore topping analysts’ forecasts.
Fundamental analysis: Positive reportingBoskalis, which provides marine construction and maintenance services, reported that its first-half earnings before interest, tax, depreciation, and amortization (EBITDA) came in at 204.1 million euros, easily exceeding the estimated 156 million euros.
The Dutch company, which runs operations in more than 90 countries around the world, also topped the full-year EBITDA outlook as it expects to generate 375.8 million euros, higher than the 337 million euro market projected.
The company said that the decline in oil prices in the first half of 2020 hurt its earnings, however, the market managed to recover some ground owing to production cuts. Some of the biggest Boskalis’ clients are major energy companies.
“We still have a substantial order backlog for 2021-2022, so we are not completely negative about the oil outlook,” said CEO of Boskalis, Peter Berdowski said in a statement.
The company said its capital expenses this year will be slightly higher than its previous euro target of 200 million and that it would recommence its share buyback programme it halted in April due to a coronavirus pandemic.
“One thing that has not changed is the unique role that Boskalis can play with its activities and expertise to make an important contribution to society in the development and protection of the welfare and in advancing the energy transition,” Berdowski added.
“In light of this confidence and the company’s robust financial position we have decided to resume the share buyback program.”
Technical analysis: Shares erupt higherBoskalis stock price gained 14% to hit 18.77, which is the new 2-month high for the stock. This way, the stock erased losses from previous weeks as investors expected that the pandemic will facilitate a bigger impact on the company’s business.
Boskalis stock daily chart (TradingView) Shares are now approaching the 200-DMA that sits just below the 19.00 handle, the same indicator that stopped the last bullish run in June. Therefore, this level is likely to provide some resistance for the buyers as they attempt to take the price action towards a fresh 6-month high above 19.60.
SummaryDutch marine services provider Boskalis reported first-half EBITDA results that beat consensus estimates and expect its 2020 core profit to be in line with last year’s results. As a result, Boskalis share price soared higher to trade at multi-month highs.
The post Boskalis stock price erupts 14% as H1 profit tops estimates appeared first on Invezz.
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