IHC Caland achieved a net profit for 2003 of US$ 46.6 million. This result is in line with the October press release,
and includes an after-tax charge of US$ 45 million in respect of the closure of van der Giessen-de Noord.

Three Group companies contributed positively to the net result - SBM and NKI, who exceeded their profit target, and IHC Gusto Engineering/Marine Structure Consultants who achieved a modest profit.

The overall order intake was lower than expected, as a result of all markets in which the Group is active being slow.

Net turnover was high, due to a high volume of turnkey deliveries.

Operating profit (EBIT) margin decreased to 3.5% compared to 8.9% in 2002, as a consequence of overall lower margins on turnkey projects, some of which included large subcontracted elements and some of which were delivered with a loss. The costs of closure of van der Giessen-de Noord also played an important role. For the same reasons, plus higher interest charges, the net profit margin decreased to 2.5% from 8.3% in 2002.

Assets and (to a lesser extent) Capital Employed increased still further, due to the continuing investment in the FPSO/FSO lease fleet. Three large FPSO's were completed during the year or just after year-end, in addition to a significant upgrade of the Kuito FPSO, and construction continues on one further FPSO and an LPG FPSO. The total investment in fixed assets in 2003 amounted to US$ 530 million, which is lower than in 2002 (US$ 702 million) mainly due to the fact that there were fewer units under construction.

De Hollandia Bailey Kloos Groep (HBK) koopt het complex van de vorig jaar gesloten scheepswerf Van der Giessen-de Noord van het beursgenoteerde bedrijf IHC Caland.