Fugro NV’s chief executive officer and finance chief have made a paper profit of almost 30% just two days after buying shares in the Dutch deepwater- oilfield surveyor.
CEO Paul van Riel bought 12,000 shares for 10.19 euros apiece on Nov. 4, while CFO Paul Verhagen bought 6,000 shares for 10.03 euros apiece the same day, according to filings posted on the financial-markets regulator AFM’s website. Fugro surged 29% to 13.03 euros at 1:03 p.m. in Amsterdam today after gaining 11% yesterday.
The shares have lost more than 70% this year, valuing Fugro at about 1.08 billion euros ($1.35 billion). Last month the Leidschendam-based company said it may not pay an annual dividend because of rapid deterioration in the oil and gas markets. Goldman Sachs Group Inc. raised its recommendation to buy from neutral and added it to its pan-Europe Conviction Buy List, citing the “recent sharp” decline in the shares.
CEO Van Riel owned 189,376 Fugro stock after Nov. 4’s transaction, according to the filing. Fugro Director Walter Scott Rainey bought 7,500 shares for 9.54 euros apiece, a separate filing showed.
“Management bought the shares to show it’s confident about the company’s strength and its long-term future,” Rob Luijnenburg, a spokesman for the company, said by telephone. The executives plan to retain the stock for an indefinite period, Luijnenburg said.