Mid-Term Targets
In 2014 Fugro formulated mid-term targets, both for the group and per division.
|
target range |
| EBIT margin, group |
8 – 12% |
| Geotechnical division, onshore |
8 – 11% |
| Geotechnical division, offshore |
11 – 15% |
| Survey division |
12 – 15% |
| Subsea Services division |
6 – 9% |
| Seabed Geosolutions |
5 – 10% |
| Return on capital employed, group |
8 – 12% |
Adjusted to the new divisional structure as per 2017, the targets are as follows
|
target range |
| EBIT margin, group |
8 – 12% |
| Marine division |
10 – 13% |
| Land division |
8 – 11% |
| Seabed Geosolutions |
5 – 10% |
| Return on capital employed , group |
8 – 12% |
The time frame in which Fugro will realise these targets is dependent on a recovery of the oil and gas market. In the current challenging market, Fugro will continue to focus on delivering positive cash flow. Reduced investment levels contribute to this objective.
Until the oil and gas services market improves, the company will limit its capital expenditure to around EUR 100 million per year. This level can be maintained until market conditions improve and a good level of opportunities for organic growth returns.
When the market improves, it is anticipated that Fugro’s capital expenditures will gradually increase, however not to the level of the past few years as Fugro can benefit for a long period of time from its large investments in new vessels between 2010 and 2014.