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 reporting

Boskalis, 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. 

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.

Technical analysis: Shares erupt higher

Boskalis 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. 

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. 

Summary

Dutch 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.