As expected, the market for offshore related oil and gas services will show a further decline in the first half of the year. 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 of Fugro’s backlog since mid-2016.

The outlook for 2017 is unchanged. For the first half of the year, Fugro continues to anticipate a further significant decline of its revenue, however less severe than in 2016, and a negative low single digit EBIT margin. Towards the latter part of the year, the company expects a bottoming out of the revenue decline. For the full year, cash flow is expected to be positive, taking into account capex of 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.

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