2018 a ‘turning point’ for Fugro

Survey vessel Fugro Brasilis off Rio de Janeiro
Survey vessel Fugro Brasilis off Rio de Janeiro

Bosses at Fugro said 2018 was a ‘turning point’ for the Dutch geo-data firm.

Revenues increased by about 10% at Fugro to £1.43 billion last year amid a “gradual recovery” in the oil and gas market and the ongoing expansion of offshore wind.

Earnings before interest and taxes (Ebit) totalled £11.4 million in 2018, against a deficit of £27.9m a year earlier.

Fugro said all of its divisions enjoyed growth, but that the marine branch outshone them all.

The “seabed” business’ results were less encouraging, impacted by “project execution issues” in the fourth quarter.

In 2019, Fugro predicts continued revenue growth, further improvement of Ebit margin and positive cash flow from operating activities after investments.

Chief executive Mark Heine said: “Our updated strategy ‘Path to Profitable Growth’ is the basis for further improvement of our profitability by capturing the upturn in energy and infrastructure, differentiating by integrated digital solutions and leveraging our core expertise in new growth markets.

“We continue to look for divestment opportunities of our non-core assets.

“To accelerate strategy implementation and further increase efficiencies we have decided to simplify the top structure by introducing a regional model with four regions, directly reporting to the board.

In addition, an executive leadership team will be established which comprises, besides the board of management, the regional group directors and several functional directors.

“This enhances alignment in our organisation and creates more focus on our strategic and operational priorities.”