Fugro boosts revenues off back of oil and wind energy contracts

Fugro news
Fugro news

Growth in the oil and gas and renewables sectors saw Fugro report a boost to revenues for the first quarter of the year.

Revenues for the quarter were £341m, up from £302m in the same period last year, while order  backlog for the remainder of the year was £819m, an 8.7% jump.

Fugro reported growth in offshore wind and oil and gas projects, including ROV work with ConocoPhillips in the North Sea and unexploded ordnance surveys at Orsted’s Hornsea Windfarm.

However issues around project executions in the Gulf of Mexico and Middle East weakened performance from the Geoscience division, resulting in earnings being “below expectations”.

The firm said the EBIT margin (earnings before interest and tax) was mid-single digit negative and below last year.

CEO Mark Heine said: “We realised further growth in our site characterisation services for offshore wind developments and oil and gas projects. We are also benefiting from higher revenue in new growth markets whilst in our Land business the asset integrity services are picking up.

“Despite the continued growth ofrevenues, EBIT in the quarter was below expectations, mainly due to Seabed Geosolutions which still suffered from previously reported challenges at two projects, and deferred vessel maintenance after a busy fourth quarter of 2018.

“Nevertheless, I am positive about the remainder of this year. Our site characterisation activities in offshore wind and in oil and gas will continue to grow and moreover, prices are improving.”

Fugro said the outlook for 2019 remains focused on continued growth in revenues and earnings.

The firm plans to restructure its management next month, resulting in the land and marine divisions being integrated.

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