Our priorities in this complex environment are clear: preserve the health and wellbeing of our people and those of other stakeholders, ensure business continuity and reduce costs and capex in order to protect liquidity and profitability.
We have a strong and committed team in place that is dealing with this unprecedented situation. We are taking appropriate measures to keep our employees, partners and clients safe and healthy while ensuring service delivery. Restrictions are in place regarding non-essential travel and international travel has almost come to a standstill. For those working at operating sites, we have put additional health and safety measures in place.
I am impressed by the professional behaviour and dedication of all our colleagues, especially those who work in the field or onboard one of our vessels. We are reaching out to our clients and partners on a regular basis in order to understand their plans, challenges and measures, and we are available to support them where possible.
Although our backlog is still solid, our business operations will be impacted. Despite strong efforts to keep operations going, some projects cannot be executed as originally planned due to increasing travel restrictions and country lockdowns. The impact of the virus is compounded by oil and gas companies’ recently announced spending cuts due to the sharp decline in the oil price.
At the same time, offshore wind is anticipated to show continued growth, though somewhat less than assumed at the start of this year. The pandemic may result in a decline in building and infrastructure activities, which could be partly compensated by government initiatives for additional infrastructure investment programmes. We are continuously analysing scenarios and are implementing mitigating measures.
Mark Heine, CEO Fugro