2014 Fugro formulated mid-term targets. Adjusted to the new divisional structure as per 2017, these targets are:
|
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% |
Fugro’s current results are significantly below these targets, driven by the deep and prolonged downturn of the oil and gas market. In order to restore profitability, Fugro continues to implement cost savings and performance improvement measures. Still, in order to realise these mid-term targets, a turnaround, or at least a stabilisation, of the oil and gas services market is needed.
In the current challenging market, Fugro will continue to focus on delivering positive cash flow. Reduced investment levels, with capital expenditure to around EUR 100 million per year, contribute to this objective.