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MERGER OF SMIT AND KOTUG’S EUROPEAN HARBOR TOWAGE ACTIVITIES 5.3
On 7 April 2016 the Group completed the merger of its European harbor towage activities with those of
KOTUG International B.V. Each partner has a 50% participation in the established joint venture, which
operates under the name KOTUG SMIT Towage in eleven ports in Belgium, Germany, the United Kingdom
and the Netherlands, with a fleet of 64 tugboats. The Group received proceeds related to this transaction of
EUR 90 million, which are reported as a cash flow from divestment.
The new situation has been accounted for in the consolidation as from April 2016. As from this date the
towage activities are included through the KOTUG SMIT Towage strategic joint venture. The transaction is
accounted for as a sale of group companies by the Group and subsequently as an investment in the
KOTUG SMIT Towage strategic joint venture. The fair value of the group companies contributed and
allocation of the acquisition price of the investment were estimated based on company valuations by
external valuators. The fair values are estimated for the assets acquired and liabilities assumed for the
determination of goodwill as included in the investment in KOTUG SMIT Towage.
The book result, recognized in Other income in the statement of profit or loss, arising from the transaction
amounted to EUR 34.0 million (after tax EUR 37.0 million), includes a profit of EUR 1.7 million as result of
the recycling of accumulated currency translation differences to the statement of profit or loss. The book
result is recognized in the statement of profit or loss, as shown in the ‘Operational segments’ table included
Since 2014 the Group had classified these activities from the Towage & Salvage operational segment,
which were incorporated in the joint venture on 7 April 2016, as assets held for sale valued at book value.
The share of results and the carrying value of the stake in the KOTUG SMIT Towage is also reported under
Towage & Salvage.
SALE OF SMIT AMANDLA MARINE 5.4
In March 2016 the Group decided to divest the activities of SMIT Amandla Marine, which were classified
as assets held for sale as from that date. On 1 December 2016 the Group completed the sale of its
investment in SMIT Amandla Marine, which had formed part of the Offshore Energy division. The sale
resulted in a net-consideration of EUR 38.5 million and a book profit of EUR 8.3 million, including a loss of
EUR 9.9 million as result of the recycling of accumulated currency translation differences to the statement of
profit or loss. The book result, reported as part of Other income, is recognized in the statement of profit or
loss as shown in the ‘Operational segments’ table included
REDUCTION OF INVESTMENT IN FUGRO N.V. 5.5
At year-end 2015 the 28.6% participation in Fugro N.V. was classified as a material associated company.
In the fourth quarter of 2016 the Group reduced its participation to 9.4% and following the loss of
significant influence the remaining investment was reclassified as an available-for-sale financial asset. The
quoted price at the time when significant influence was lost is applied in determining the sales price for
which the remaining investment in Fugro N.V. was classified as an available-for-sale financial asset.
The reduction of the investment in Fugro N.V. and the reclassification of the remaining investment as
available for sale, resulted in a book result. Based on the information available when the Group lost its
significant influence, this sale resulted in a book loss of EUR 2.2 million, including the recycling profit of
translation and hedging reserves amounting to EUR 2.3 million, based on the book value of our investment
including our share in the first half year loss of Fugro N.V. amounting to EUR 27.9 million. The total impact
of the Group’s investment in Fugro N.V. on the 2016 statement of profit or loss of the Group amounts to a
loss of EUR 30.1 million (2015: loss of EUR 3.4 million). Based on the annual results as made public by
Fugro N.V. on 24 February 2017, this impact would consist of the share of the Group in the full year loss
of Fugro amounting to a loss of EUR 51.9 million and consequently a book result amounting to a profit of
EUR 21.8 million. The total impact is reported in Result of joint ventures and associated companies; in the
statement of profit or loss as shown in the ‘Operational segments’ table the Fugro investment is
reported under Holding & Eliminations.
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016