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Fugro 2013 Annual Results Mixed Performance

Traction with growth and performance improvement under the 'Growth through Leadership' strategy

Leidschendam, The Netherlands
07 Mar 2014  

General highlights 2013

  • Reasonable performance of Geotechnical and Survey divisions; improving performance of the Subsea Services division (which was reported as part of the Survey division before 2013); start-up losses for Seabed Geosolutions and lower than expected year-end multi-client sales.
  • Completion of the divestment of the majority of the Geoscience division to CGG for a total consideration of EUR 1.2 billion with a net transaction result of EUR 205 million. The sale was completed in two tranches. The first tranche excluding the airborne activities, was completed on 31 January 2013. The second tranche, the sale of the airborne activities was completed on 2 September.
  • Establishment of Seabed Geosolutions on 16 February 2013, a joint venture with CGG to which both parties contributed their seabed geophysical activities and in which Fugro has obtained a 60% controlling stake by paying EUR 225 million via a set-off agreement to CGG. Seabed Geosolutions collects geophysical data on the seabed for oil and gas companies.
  • An in-depth strategic review resulted in the updated strategy ‘Growth through Leadership’, which builds on the same strategic drivers which are core to Fugro’s historic success. Fugro is targeting expansion of its activities in the strong Geotechnical and Survey divisions, leading to a step-up in investments in the vessel fleet in the next years. In addition, Fugro targets profitability improvement in the Subsea Services division, and both growth and profitability improvement in Seabed Geosolutions.
  • Starting with the 2013 dividend (to be paid in 2014), dilution resulting from the optional dividend (cash or shares) will be offset through a share buy-back and cancellation of the same number of shares issued as stock dividend.
  • Composition Supervisory Board and Board of Management; proposals to AGM.

Financial highlights 2013

Key figures(x EUR million) 31 December 2013 Change % 31 December 2012
Revenue 2,424.0 2,165.0
Revenue (including multi-client)1) 2,437.2 1.5 2,400.0
Result from operating activities before depreciation and amortisation (EBITDA) 457.4 (1.7) 465.4
Result from operating activities (EBIT) 267.0 (12.9) 306.6
Net result 224.2 (3.2) 231.5
Net result (including discontinued operations) 428.3 47.8 289.7
Cash flow 404.3 1.0 400.1
EBIT margin (%) 11.0 14.2
Net profit margin (%) 9.3 10.7
Earnings per share (including discontinued operations) 5.29 46.5 3.61
Dividend for the year under review 1.50 1.50
Extra dividend for the year under review related to sale of majority Geoscience business - 0.50
Investments 318.8 21.8 261.7
Return on capital employed (ROCE, %) 8.2 11.0

1)The multi-client library sales (of EUR 235 million for full year 2012 and EUR 13 million in January 2013) was reported as discontinued operations. As from 1 February 2013, the multi-client revenue is included in continued operations. For comparison reasons the line 'revenue including multi-client' has been included (which includes the multi-client revenue for the full period).

Refer to appendix 1 for a further explanation on the presentation of results.

Continued

  • Revenue increased from EUR 2,165.0 million in 2012 to EUR 2,424.0 million in 2013. This growth is to a large extent related to the fact that multi-client revenue is included only as per February 2013.
  • Revenue including multi-client increased by 1.5% from EUR 2,400.0 million to EUR 2,437.2 million. Growth at Survey and the revenue contribution from Seabed Geosolutions were partly offset by lower multi-client sales and a negative foreign currency effect of 4.6%. Corrected for the negative exchange rate effect, revenue increased by 6.1%.
  • EBIT was 13% lower at EUR 267 million, impacted by the start-up loss of Seabed Geosolutions and a lower contribution from multi-client.
  • Net result from continuing operations was EUR 224.2 million in 2013, which is 3.2% lower than in 2012.
  • Earnings per share was EUR 2.77 (2012: 2.89).
  • Backlog at the beginning of 2014 is EUR 1,800.8 million, or 19% higher than a year ago. Excluding Seabed Geosolutions, the increase at constant exchange rates is 9%.
  • Fugro’s financial position is solid with a net debt to EBITDA ratio of 1.53, well below the target of less than 2.

Continued and discontinued

  • Revenue decreased from EUR 2,952.7 million in 2012 to EUR 2,518.2 million in 2013. This decrease is mainly related to the divestment of the majority of the Geoscience activities per 31 January 2013.
  • Net result (including discontinued operations) was EUR 428.3 million in 2013 (2012: EUR 289.7 million) and includes the net transaction result of EUR 205 million on the divestment of the majority of the Geoscience activities.
  • Earnings per share (including discontinued operations) was EUR 5.29 (2012: EUR 3.61).
  • Proposed dividend for 2013 is EUR 1.50 per share.

For more information

Media

Martine Langerak
media@fugro.com
+31 (0) 70 31 11147

Investors

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

 

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