Barring unforeseen circumstances the net result is expected to be
at least EUR 275 million (2007: EUR 216 million), which means an
increase of more than 27% compared to last year. This leads to an
increase of the net profit margin to more than 13% (2007: 12%).
increase in revenue of nearly 20% compared to last year is largely the
result of organic growth. Despite the recent increased rate of exchange
of the US Dollar, the foreign currency effect over the full year will be
approximately 7% negative as a result of the on average lower rates of
exchange of the US dollar and the UK pound against the Euro. This will
partly be compensated by an increase in revenue from acquisitions by
approximately 4%. All three divisions are contributing to the growth in
revenue and result, with the strongest increase being in the Geoscience
As in the first half year, the demand for Fugro’s
services remained strong during the past few months. This is also
reflected in a strong order backlog for the coming period. In volume,
the order backlog has increased by 20% compared to one year ago.
is expected that in the event of continuing lower prices for oil and
minerals, some smaller clients (in the oil and gas sector as well as in
mining) which operate on the basis of external financing, may delay
projects or reduce their activities. On the other hand Fugro’s most
important group of clients, being National Oil Companies and large
international players, has indicated they intend to continue with
investments in new prospects targeted for future production. In this
regard the further decline of production in existing oil and gas fields
is an important consideration. Moreover the development of new fields
takes several years. Fugro is focused on being involved in several
phases of such development through its broad range of services.
market for large infrastructure (20% of revenue) shows a mixed picture.
In a number of countries a certain hesitation with respect to starting
up new projects is noticeable, while in other countries governments are
initiating measures to support this sector, as for example, in China.
Fugro’s new ROV support vessel, Fugro Saltire, started her operations at
the end of August and has orders for work until well into 2009. In
December three new vessels will commence operation on projects, two for
marine seismic (Geo Caribbean and Geo Natuna) and one for offshore
surveys (Fugro Solstice).
Fugro has reached agreement to acquire
GEO LLC, based in Anchorage, Alaska, United States. The company
specialises in offshore geophysical surveys, as well as in geotechnical
investigations for new oil and gas fields offshore, especially in the
arctic regions such as the Chukchi and Beaufort Seas. GEO LLC has an
annual revenue of EUR 7 million.
Fugro’s activities in Brazil are developing very successfully with recent awards of orders for Petrobras:
- a three year extension of a contract for two ROVs to execute IRM
(installation, repair and maintenance) work in the Santos and Campos
basins in up to 3,000 metres water depth;
- six ROV rig support contracts for a period of two to five years;
- a three year extension of a contract to perform air diving activities for maintenance work.
with the earlier announced contracts for Petrobras and for some
international oil companies for performance of various offshore
activities, the above mentioned contracts represent a value of over EUR
270 million for work to be executed in the coming years in Brazil.
Meanwhile Fugro operates 17 ROVs in Brazil and will add more in the
Fugro will publish its annual figures for the full year 2008 on 6 March 2009.