Fugro has reported that its revenues have fallen for the third consecutive year by 16% to €1.49bn (£1.3bn).
In its annual report, the company announced that the “exceptionally deep downturn” in offshore oil and gas was to blame for the loss in overall revenue, even with a 9% increase in revenue from other areas of the business, such as building and infrastructure, renewables and power.
Fugro chief executive officer Paul van Riel said: “This was the fourth consecutive year of an exceptionally deep downturn in offshore oil and gas services, currently our largest market.
“The impact of the 25% lower oil and gas related revenue could not be fully compensated by continued capacity and cost reduction measures, and an organic 9% revenue increase in our other markets.“
Van Riel said that Fugro were anticipating improved results in 2018.
“For the first time since the start of the downturn in the offshore oil and gas market, we see signs of stabilisation, and our other markets are expected to grow further as the world economy is strong.
“A key strategic driver for Fugro is to work across different markets, as this improves resilience. In 2017, non-oil and gas represented 43% of total revenue because of growth in building and infrastructure, renewables, power and nautical markets on the one hand, and a decline in the oil and gas market on the other hand.”
Fugro has ended 2017 with an operating loss of 2%.
In 2015 Fugro reported a 9% fall in revenue, followed by a 25% drop in 2016.