Backlog in Furgo’s early cyclical marine site characterisation business and CEO Paul van Riel says this is an important early indicator for recovery in the oil and gas market.
“The offshore oil and gas market appears to be reaching its inflection point,” he said in Fugro’s statement on its third quarter results which showed a 23% drop in revenues to €364M (£322M) compared to the same period last year.
Despite the fall in revenues, the company reported an increase in EBITDA to 2.9% compared to 1.8% for the third quarter in 2016.
“This quarter, results were unfortunately impacted by technical downtime of some vessels and hurricanes,” said van Riel.
Nonetheless, he reported that Fugro’s building and infrastructure market is growing and the company has a strong position in the renewables market with good potential for further growth.
The company has said that it expects the fall in revenues to slow in the fourth quarter and be a single digit drop, however, the result for the full year is expected to show a double digit decline.