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Strong revenue growth and improved EBIT. Continued competitive offshore market conditions.

01 Aug 2018   07:00 CET
Leidschendam, The Netherlands

  • Revenue growth of 16.6% on comparable basis mainly driven by renewables, oil & gas and building & infrastructure
  • EBIT margin turns positive as a result of significantly improved EBIT in the Marine division
  • Cash flow from operating activities after investments is negative, resulting from strong revenue growth and related working capital increase
  • Net debt/EBITDA of 2.5; expected to improve towards year-end
  • Continued backlog growth on a comparable basis
  • Outlook 2018: Fugro expects revenue growth on a comparable basis, a marginally positive EBIT margin and positive cash flow from operating activities after investments dependent on revenue growth and the related working capital requirements
  • Strategy update to be presented November 2018
Key figures (x EUR million) HY 2018 HY 2017
Revenue 797.4 774.3
  comparable growth1 16.6% (14.5%)
EBITDA (excluding exceptional items2) 56.7 46.6
EBIT (excluding exceptional items2) 4.0 (25.3)
EBIT margin (excluding exceptional items2) 0.5% (3.3%)
Net result (40.5) (96.4)
Backlog next 12 months 943.0 971.2
  comparable growth1 3.1% (5.5%)
Cash flow from operating activities after investments (43.5) (66.1)
Net debt/EBITDA 2.5 2.2

The information in this report is unaudited. Refer to annual report 2017 for definition of EBITDA for covenant purposes.
1  Corrected for currency effect (of around - 7% on revenues and - 2% on backlog) and for portfolio changes related to the divestment of the marine construction and installation activities in 2017
2  Onerous contract provisions, restructuring cost, impairment losses, and other exceptional items totalling EUR 0.5 million compared to EUR 25.3 million in HY 2017 (EBIT impact)

Øystein Løseth, CEO: “In the second quarter revenue growth increased substantially driven by strong growth in offshore wind, growth in the building & infrastructure market and a gradually recovering oil and gas market. Oil companies are starting to increase their investment levels in order to meet future demand. This is reflected in strong growth of the early cyclical marine site characterisation activities. In the offshore wind market, where Fugro has strong positions, we benefit from large projects in the North Sea, the United States and Asia. Strong revenue growth, in combination with last years’ cost reduction measures, has resulted in improved profitability. We are still working on low margin contracts, secured at the bottom of the oil and gas market. We do see some price recovery, however overall the offshore market is still oversupplied, resulting in a continued challenging pricing environment.

I have spent the past months getting to know our business, people and clients around the world, in order to understand their needs and priorities. It is clear that Fugro has a strong brand and technological platform, professional and motivated people and a unique ability to provide integrated services on a global scale. I believe Fugro is well positioned to capture profitable growth in the years ahead.

With Fugro’s current ‘Building on Strength’ strategy four years underway and in light of changing market circumstances and long term trends, Fugro will provide a strategy update in November. In that update we will address both the needed improvement in our performance and our long term vision.”

For more information

Media

Edward Legierse
Contact

+31 (0) 70 31 11147

Investors

Catrien van Buttingha Wichers
Contact

+31 (0) 70 31 15335

 

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