Q1 2017 trading update

Results impacted by continued decline in offshore oil and gas market - Outlook 2017 unchanged

Leidschendam, the Netherlands
02 May 2017

  • Year-on-year revenue decline of 14.6% or 16.3% on a currency comparable basis, which is less severe than last year, reflecting continued underinvestment in the offshore oil and gas market
  • Negative high-single digit EBIT margin (excluding exceptional items) in seasonally weak first quarter, compounded by the impact of challenging market conditions
  • Net debt/EBITDA of 1.3 well below covenant requirement of under 3.0
  • Backlog for the next 12 months has stabilised since mid-2016. Compared to the same quarter last year, backlog decreased by 12.9% on a currency comparable basis
  • Outlook 2017: For the first half of the year Fugro continues to anticipate a significant decline in revenue, however less severe than in the same period of 2016, and a negative low single digit EBIT margin (excluding exceptional items). Revenue decline is expected to bottom out towards the latter part of the year. Full year cash flow is expected to be positive
Key figures (x EUR million)
unaudited
Q1 2017 Q1 2016 Reported growth Currency comparable growth
Revenue 376.7 441.1 (14.60%) (16.30%)
Backlog remainder of the year 961.3 1,054.70 (8.90%) (11.10%)
Backlog next 12 months 1,051.90 1,175.80 (10.50%) (12.90%)
Net debt/EBITDA 1.3 1.7

Paul van Riel, CEO: ‘At the release of the full-year 2016 results we guided for a tough first half of 2017. In line with this, we experienced a seasonally weak first quarter which was further impacted by work volume reduction and price pressure due to continued underinvestment in the offshore oil and gas market.

We are addressing these still challenging market circumstances by continuing to reduce our cost base, improve efficiency, differentiate our service offering and invest in innovation to improve our competitive position. In combination with our strong global presence and technological capabilities this allows us to expand our market leading positions.

Our revenue in the building and infrastructure market grew, supported by a strengthening global economy. We are also benefiting from our very strong position in the growing offshore wind farm market, which has begun to expand globally from its North Sea nucleus.

We are pleased to see that the backlog is stable since mid-2016. This indicates the decline of revenue from the oil and gas market may bottom out towards year end.’


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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