• Careers
  • Fugro Global
  • Global

Q1 2021 trading update

Fugro shows margin resilience despite continued Covid-impact. Growth expected to resume in the course of the second quarter.

22 Apr 2021   07:00 CET
Leidschendam, the Netherlands

  • Slightly improved EBIT margin in a seasonally weak quarter
  • Revenue decline of 17.2% in the quarter, fully driven by the impact of Covid and a strong related decline in oil & gas activities, partly offset by revenue growth in other market segments 
  • Cost reduction programme, initiated last year, fully implemented by now, resulting in annualised savings of around EUR 130 million 
  • Divestment Seabed Geosolutions announced; transaction expected to be completed by mid-2021
  • Good order intake results in EUR 875.7 million backlog, in line with first quarter of 2020, and with an increasing share from renewables, infrastructure and nautical activities
  • Outlook 2021: revenue growth is expected to resume in the course of the second quarter. For the full-year, Fugro expects a modest margin improvement
Key figures (x EUR million)
from continuing operations
unaudited
Q1 2021 Q1 2020 Comparable growth1
Revenue 283.8 358.4 (17.2%)
Adjusted EBITDA2 13.1 7.2
Adjusted EBIT2 (14.9) (21.5)
Adjusted EBIT margin2 (5.3%) (6.0%)
EBIT (15.5) (26.5)
Cash flow from operating activities after investing (45.3) (21.5)
Backlog next 12 months 875.7 890.0 (0.9%)

1  Corrected for currency effect
2  Adjusted for onerous contract provisions, restructuring cost and impairment losses

Mark Heine, CEO: “This quarter, our revenue was again strongly affected by the pandemic and the related decline in oil and gas activity levels. This is evident in comparison with the first quarter of 2020, when the initial Covid impact became visible only towards the end of the quarter. At the same time, our results demonstrate once again our resilient operating model and increasingly diversified portfolio, with an increasing revenue share from renewables, infrastructure and nautical activities. We were able to slightly improve our margin in the seasonally weak first quarter. This was largely due to the comprehensive cost reduction programme which was initiated immediately after the outbreak of the pandemic and which is now fully effective. 

Based on the good order intake this quarter, we anticipate that revenue will start to grow again in the second quarter. Furthermore we expect a modest margin improvement for the full year. 

Backed by the knowledge, experience and commitment of our staff, the innovative solutions we provide and our increasingly diversified customer base, we will make our way back to our Path to Profitable Growth. In line with our 2021 management agenda, we have recently announced the divestment of Seabed Geosolutions and we expect to complete this transaction mid-2021. Furthermore, we are determined to deliver: ongoing focus on costs and cash flow generation; completion of the turnaround of the land business; further strengthening of operational and commercial excellence and employee engagement; enhancing our service delivery with new market leading digital and remote solutions; and implementing our ambition to achieve net-zero emissions in 2035.

Barbara Geelen is scheduled to start as our new CFO after approval from the EGM on 12 May, securing a smooth handover from Paul Verhagen.”

For more information

Media

Edward Legierse
Contact

+31 (0) 70 31 11147

Investors

Catrien van Buttingha Wichers
Contact

+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