During the first half of 2017, the market for offshore related oil and gas services is expected to show a further significant decline.
Towards the latter part of the year it is expected to bottom out as oil and gas companies move from a cost savings mode to cautious preparations for new investments. This expectation is supported by the stabilisation in Fugro’s backlog during the second half of 2016.
In line with market developments, Fugro expects a further significant decline of its revenue for the first half of the year, however less severe than in 2016, and ongoing pressure on margins. Towards the latter part of the year Fugro anticipates a bottoming out of the revenue decline. For the full year, we expect a positive cash flow. Capex will be around EUR 100 million.
Until the oil and gas market recovers, the company will continue to adjust its resources and cost base in line with activity levels.
In the building & infrastructure, offshore wind and mining markets, Fugro expects modest growth.