The high demand for Fugro's
services continues unabated, especially from the oil and gas sector and
for large-scale infrastructure projects.
(marine seismic surveys) for the oil and gas industry show a strong
increase as a result of the additional vessels taken into service during
2007, the utilisation of which will also be high for the rest of the
year. Multi-client data sales showed a sharp increase compared to the
same period in 2007.
In line with the above trend, the order backlog is also higher than a year ago.
intended expansion of the marine fleet by six vessels (two owned, the
rest chartered) has now been arranged. It is expected that the two new
vessels being built will experience a few weeks delay in delivery. The
concurrent operational equipment expansion includes twenty ROVs
(Remotely Operated Vehicles) and an AUV (Autonomous Underwater Vehicle).
Fugro's workforce has now increased to more than 12,400 employees.
three divisions are expected to show an increase in revenue and result
for the first half of 2008. Most of the revenue growth will be organic.
The lower US Dollar and British Pound exchange rates will, at their
current level, have a negative impact of approximately 7% on the revenue
growth. This will largely be offset by a revenue increase of around 5%
as a result of acquisitions completed during 2007 and 2008.
unforeseen circumstances and a further decline of the US Dollar and
British Pound, revenue for the company for the first half of the year is
expected to increase by approximately 20% to around EUR 1 billion
(first half of 2007: EUR 826.3 million) and net profit is also expected
to increase by approximately 20% to over EUR 100 million (first half of
2007: EUR 85.9 million). This means that last year's strong increase in
the first half year net profit margin to over 10% will be maintained
(first half of 2007: 10.4%).
of EUR 118,602,000 of the nominal EUR 125 million convertible bond loan
issued in 2005 has now been converted for which 4,890,804 depository
receipts of shares have been issued. As from 11 May 2008 Fugro is
entitled, under certain conditions, to redeem (the remainder of the)
convertible notes prior to the expiry date. Fugro intends to redeem the
remaining portion of the bond and will shortly start the procedure for
As a result of the above mentioned issue of certificates of
shares the total number of outstanding certificates of shares increased
to 75,311,780 on 13 May 2008 of which 1,444,646 were held in treasury.
Expansion in Brazil
has acquired the remaining 38% interest in the Fugro-Oceansatpeg
joint-venture in Brazil. This joint venture was established in 2005 to
provide marine survey services in Brazil, primarily for the oil and gas
industry. These activities will be continued under the name 'Fugro
Brazil Ltda' from a new office near Rio de Janeiro. During the first
quarter of 2008 Fugro-Oceansatpeg received new orders worth a total of
around USD 30 million. These orders are for ROV services for several
clients, including Petrobras, as well as for offshore surveys and diving
activities related to production facilities in various locations
including the Campos field.
Fugro has also reached agreement
regarding the acquisition of In Situ Geotecnia Ltda. - a leading
Brazilian company in the field of geotechnical services. In Situ
operates throughout Brazil with offices in Curitiba and Sao Paulo and
has an annual revenue of EUR 4 million and 100 employees. In Situ
Geotecnia Ltda. will be part of the onshore geotechnical business line.
has been active in Brazil for many years providing various services,
including airborne surveys for the mining industry, as well as marine
seismic, offshore surveys and geotechnical work for the oil and gas
Fugro now employs 900 people in Brazil.
Half-yearly figures 2008
Friday 8 August Fugro will announce results for the first six months of
2008, and give an update regarding the expected profit for the full