• Careers
  • Fugro Global
  • Global

Q1 2016 trading update: ongoing challenging oil and gas market continues to impact Fugro results

Positive cash flow and reduced net debt

29 Apr 2016  
Leidschendam, The Netherlands

  • Year-on-year revenue decline of 25.8% or 23.4% on a currency comparable basis, in line with oil and gas market developments.
  • Negative low single digit EBIT margin in traditionally weak first quarter as a result of ongoing challenging market conditions.
  • Positive cash flow from operating activities after investments (including proceeds from sale and lease back of a geotechnical vessel).
  • Further reduction of net debt; net debt/EBITDA of 1.7 compared to covenant requirement of below 3.0 .
  • In April, agreement reached on sale of CGG USD 90 million term loan for around USD 71 million (EUR 63 million), to be fully applied to debt reduction.
  • Backlog for the next 12 months decreased by 22.3% on currency comparable basis compared to a year ago and by 8.6% compared to the previous quarter.
  • Outlook 2016: positive cash flow, further reduction of cost base and severe pressure on margins.
Key figures (x EUR million)
Q1 2016 Q1 2015 reported growth currency comparable growth
Revenue 441.1 594.3 (25.8%) (23.4%)
Backlog remainder of the year 1,054.7 1,410.3 (25.2%) (20.5%)
Backlog next 12 months 1,175.8 1,610.2 (27.0%) (22.3%)
Net debt/ EBITDA 1.7 2.2    

Paul van Riel, CEO:

"The exceptionally deep downturn in oil and gas services has by now entered its third year. We had already guided for a very difficult 2016, and during the past months our clients' exploration and production budgets again declined significantly. We are therefore anticipating strong revenue decline and severe margin pressure. We are continuing to adjust our cost base and capacity to market reality. Generating positive cash flow is our number one priority.

Also under these tough market circumstances we are executing on our strategy and we are successful in strengthening our market leadership positions. The non-oil and gas related building, infrastructure and power markets continue to provide good opportunities in several regions. In the oil and gas market, there is increasing evidence that fundamentals are moving back towards balance. In recent months, the oil price has gradually increased from its lowest point early this year but it is uncertain when this will have a positive impact on our business. Overall, the company is well positioned to benefit from the recovery in the market when the supply-demand balance is restored and markets start to recover."

For more information


Serge van de Ven

+31 (0) 70 31 11129


Catrien van Buttingha Wichers

+31 (0) 70 31 15335


Share this page

Learn about Fugro

Case studies

Explore our global expertise in this collection of real-world projects where we illustrate solutions for clients across many industry sectors.

More Information

Fugro World

Regular articles from our people that provide insight and thought leadership into industry challenges, technologies and projects.

More Information

News releases

Catch up on the latest news and project awards to get an insight into our diverse range of services and the sectors we operate in.

More Information

Keep up to date with the latest news and stories from Fugro, direct to your inbox