Highlights
- Year-on-year revenue decline of 2.1% on a currency comparable basis.
- EBIT margin improved compared to the relatively weak first quarter of 2014.
- Seabed Geosolutions reported a small positive result, driven by restructuring and improved utilisation.
- Cost reduction and performance improvement measures on track; additional measures will be implemented to align capacity to a further decline of the oil and gas market.
- Planned portfolio changes progressing, both in relation to Subsea Services and Fugro’s stake in Seabed Geosolutions.
- Positive cash flow from operating activities after investments.
- Net debt to EBITDA of 2.2 compared to requirement of below 3.25, despite adverse effect of stronger USD on debt position.
- Backlog for the next 12 months of the Geotechnical and Survey divisions relative to the first quarter of 2014 down by 15.7% at constant currencies, reflecting market developments.
| Key figures (x EUR million) 1 |
Q1 2015 |
Q1 2014 |
reported growth |
currency comparable growth |
| Revenue |
594.3 |
535.5 |
11.0% |
(2.1%) |
| Backlog remainder of the year |
1,410,3 |
1,571.3 |
(10.2%)
|
(23.0%) |
| Backlog next 12 months |
1,610.2 |
1,802.3 |
(10.7%) |
(23.3%) |
1 unaudited figures
Paul van Riel, CEO:
"Despite the challenging oil and gas market, we are able to report an overall margin increase. This was partly due to achieving profitability in Seabed Geosolutions as a result of restructuring in combination with improved utilisation. The drop in backlog however is a clear signal of the continuing downturn in the oil and gas market. We are reducing our fleet, headcount and costs as planned. In light of oil and gas market developments and reduced visibility, we have decided to implement additional cost reduction measures during the remainder of the year. Through these measures, we remain confident about our ability to deliver strong cash flow and strengthen the balance sheet.
We have been able to build our global market leading Geotechnical and Survey divisions into pillars of strength for Fugro on the foundation of being an independent service provider. Strategically, the way forward is to focus on our geotechnical and survey activities."