Fugro maintains profit forecast

Barring unforeseen circumstances, Fugro expects that the profit over the year 2009 will be around EUR 260 million (2008: EUR 283.4 million).

Leidschendam, The Netherlands
19 Nov 2009

This is unchanged from the earlier released profit forecast.

Revenue over 2009 is expected to amount to approximately EUR 2.05 billion (2008: EUR 2.15 billion). The effect of currency exchange variations and acquisitions on the development of the revenue is insignificant.

As a result of the above, the net profit margin will be about 12.7% (2008:13.2%).

The lower revenue and profit are largely due to reduced contributions from the Geoscience division.

Business development
The slightly lower revenue results partially from price pressure in exploration activities in the oil and gas and mining sectors. Furthermore, the delay in delivery of a new vessel and the termination of the charter of two seismic vessels have an impact on the development of revenue.

Based on equal rates of exchange, the total order backlog has decreased by about 15% compared to one year ago. However, recently tender activity is increasing for projects in several market segments where Fugro is active, for instance in Southeast Asia and global frontier areas in deep water.

As a result of the increase of available capacity, the lead time for the award of projects has shortened. This, in addition to the aforementioned price pressure, has lead to a lower order backlog. This particularly concerns exploration work for offshore oil and gas and mining (Geoscience division), but activities for the field development for offshore oil and gas and infrastructure related work onshore (Geotechnical division and Survey division) are impacted to a much lesser degree.

In the oil and gas sector, large international oil and gas companies and national oil companies (NOCs) are continuing long-term development projects, for example in Australia and Brazil. In particular in the United States, stimulus programmes by governments are supporting projects for onshore and nearshore infrastructure.

In view of the decreased demand for marine seismic survey work, Fugro has terminated the charters of the Hawk Explorer (2D) and the Seisquest (3D), as well as of two support vessels.

The Fugro Synergy, a new multi purpose drilling vessel, has now been mobilised for a project in the North Sea.

The fleet renewal/extension scheme will be continued in accordance with the earlier published schedule.

Financial position
Fugro has a sound financial position with an equity of about EUR 1.1 billion and net financial debt of EUR 475 million, leading to a gearing of 43%. The cash flow and available bank facilities are ample to finance the scheduled investments and possible future acquisitions. Meanwhile, discussions with banks with regard to the extension of long term financing were successfully completed. These facilities have now been extended to a maturity date of April 2012 and amount to a total of EUR 425 million.

Fugro will publish the annual figures for the full year 2009 on 5 March 2010.

 

Cautionary Statement regarding Forward-Looking Statements
This announcement may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro N.V.'s beliefs, expectations, intentions, forecasts, estimates or predictions (and the assumptions underlying them).
Forward-looking statements necessarily involve risks and uncertainties. The actual future results and situations may therefore differ materially from those expressed or implied in any forward-looking statements. Such differences may be caused by various factors (including, but not limited to, developments in the oil and gas industry and related markets, currency risks and unexpected operational setbacks).
Any forward-looking statements contained in this announcement are based on information currently available to Fugro N.V.'s management. Fugro N.V. assumes no obligation to in each case make a public announcement if there are changes in that information or if there are otherwise changes or developments in respect of the forward-looking statements in this announcement.

For more information

Media

Edward Legierse
media@fugro.com
+31 (0) 70 31 11129

Investors

Catrien van Buttingha Wichers
c.vanbuttingha@fugro.com
+31 703 115 335

 

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