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Q3 2020 trading update

Improved EBIT margin and full-year outlook

19 Oct 2020   18:50 CET
Leidschendam, the Netherlands

This Q3 2020 trading update, which was originally planned for 30 October 2020, is issued today in support of the proposed comprehensive refinancing announcement, including a plan to raise equity to strengthen the company’s balance sheet, details thereof are included in a separate press release. 

  • Revenue in the third quarter declined by 15.8% on a currency comparable basis due to the impact of Covid-19 and the related downturn in oil and gas markets, partly offset by strong growth in the offshore wind market 
  • Continued diversification in Fugro’s business; in the third quarter, 66% of revenue was generated in offshore wind, infrastructure, nautical and other non-oil and gas related markets, up from 48% in FY 2019 
  • Improved adjusted EBIT margin  of 11.2%, compared to 9.5% in the same quarter last year
  • Cash flow from operating activities after investing of EUR 39.7 million 
  • Good liquidity with around EUR 400 million in cash and available facilities as at 30 September 2020
  • Solid 12 month backlog of EUR 841.8 million, which represents a 3.7% year-on-year decrease; with growth in three of the four business lines, offset by a decline in the marine asset integrity business line
  • Non-cash impairment expected of around EUR 30 million in Seabed Geosolutions (held for sale) 
  • Net debt/EBITDA of 1.8 as per 30 September 2020 
  • Improved full-year 2020 outlook with expected adjusted EBITDA of around EUR 150 million, adjusted EBIT of around EUR 40 million and a positive free cash flow 
  • Fugro also announced today in a separate press release a proposed comprehensive refinancing, including a plan to raise capital through an equity issuance
Key figures (x EUR million) from continuing operations1 unaudited YTD 2020 YTD 2019 Q3 2020 Q3 2019
Revenue 1,068.20 1,241.00 360.7 444.2
  comparable growth2 (12.3%) (15.8%)
Adjusted EBITDA3 128.8 153.4 67.5 70.1
Adjusted EBIT3 44.7 65.4 40.4 42.1
Adjusted EBIT margin3 4.20% 5.30% 11.20% 9.50%
EBIT 23.9 56.6 34.6 39.8
Backlog next 12 months 841.8 934.1 841.8 934.1
  comparable growth2 (3.7%) (3.7%)

1 Excluding Seabed Geosolutions, which is held for sale
2 Corrected for currency effect
3 Adjusted for onerous contract provisions, restructuring cost, impairment losses and certain adviser- and other costs or gains

Mark Heine, CEO: “Since the start of the pandemic, we have been able to operate within the constraints of Covid-19. While maintaining health and safety as a first priority, we have continued operations for the vast majority of our projects. Thanks to our comprehensive cost reduction programme, in combination with continued strong growth of our offshore wind business, the third quarter results show a year-on-year improvement of our adjusted EBIT margin, despite the revenue decline, resulting in an improved full-year adjusted EBITDA outlook of around EUR 150 million. 

Offshore wind grew this quarter by 42%, making it a key market for Fugro, with 30% of our revenue. This quarter, two-thirds of group revenues was generated in non-oil and gas related activities. This is fully in line with our strategy to diversify further towards markets where we can support as well as benefit from the energy transition, climate change adaptation and sustainable infrastructure development. 

Our recent performance under difficult circumstances reflects our leading market positions and has shown our flexibility to shift our versatile assets and capabilities to new growth markets. In order to grow our margins, we will continue to implement our rigorous cost reduction program and complete the turnaround of the underperforming land business. 

The need for sustainable development and climate change adaptation across the globe leads to increased spending on renewable power and electricity networks, subsea cables, coastal defense, hydrography and freshwater projects, creating ample opportunities for Fugro. This supports our mid-term targets, in combination with continued disciplined management of our cost base, working capital and liquidity, value-based pricing and digital transformation to increase efficiency. 

The contemplated comprehensive refinancing will provide us with increased flexibility to deliver on our Path to Profitable Growth strategy.” 

For more information


Serge van de Ven

+31 (0) 70 31 11129


Catrien van Buttingha Wichers

+31 (0) 70 31 15335


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