Focus on upholding performance; maintaining strategy to grow in the future

Major developments in the first half of 2010

• Revenue in the first half of 2010 increased by 0.7% to EUR 1,042.4 million (first half of 2009: EUR 1,035.3 million).
• The net result for the first six months of 2010 decreased by 10.1% to EUR 101.0 million (first half of 2009: EUR 112.4 million).
• In a number of activities price pressure continues. Nevertheless the decrease of the net result was limited as a result of the company’s market position and focus on securing utilisation for key assets.
• Sofar there is little impact from the Macondo oil spill on Fugro’s activity. About 6% of the total revenue of Fugro is generated in the USA part of the Gulf of Mexico. A substantial part is related to servicing existing production and is not affected by the exploration moratorium.
• In the first half of 2010 two new-build vessels were added: the chartered seismic vessel Geo Caspian and the Fugro owned survey vessel Fugro Searcher.
• Fugro placed orders for two new survey vessels and two new specially designed geotechnical vessels for deepwater work in order to have in time capacity available for future expansion in these segments.
• Interra S.A., Chile and its sister company TerraLaser S.A., Peru were acquired in June 2010. The annual revenue is EUR 3.0 million and the purchase price amounts to EUR 2.0 million.
• New facilities in Macae, Brazil, supporting the marine operations with some 850 staff, were officially opened in the second quarter of 2010.

Outlook

• Barring unforeseen circumstances, and assuming reasonably stable exchange rates, Fugro expects that the revenue for the whole of 2010 will be approximately EUR 2,200 million (2009: EUR 2,053.0 million) with a net result of around EUR 260 million, which is comparable to the full year result over 2009 (EUR 263.4 million). This will result in a net profit margin of 11.8% for the whole of 2010 (2009: 12.8%)
• Activities related to exploration continue to experience price pressure.
• The longer term impact (if any) of the oil spill in the Gulf of Mexico cannot be assessed at this stage.
• The previously initiated investment programme, which includes the refitting and renewal of the marine fleet, is progressing in line with plan.
• The order backlog for the coming six months amounts to EUR 1,038 million (end June 2009: EUR 931 million).