Fugro has set out its plans to grow the business through to 2023 with a new strategy published during its capital markets day in Amsterdam yesterday.
In its Path to Profitable Growth strategy, Fugro has said that recovery of the oil and gas market and ongoing growth in offshore wind and infrastructure markets create “ample opportunities” for further growth.
The company has said that the recent downturn in the oil and gas market helped the business position itself as a geodata specialist, which it says will help it capitalise on current market trends.
As part of the strategy, Fugro has set out its financial aims for the period between 2021 and 2023, which include achieving EBIT of 8-12% and improving cash flow to 4-7% of revenue.
The company said that it is targeting organic growth and deleveraging to achieve these aims.
Fugro CEO Mark Heine said: “We are ready to capture the upturn in the oil and gas market and the continued growth in offshore wind and infrastructure markets. The year 2018 marks the turning point in our results, driven by sharp growth and improving prices in our early cyclical marine site characterisation activities. Still, it is obvious that our results need further improvement. Our ‘Path to Profitable Growth’ strategy targets volume growth, while operating leverage, increased prices and improved productivity will push our margins. Applying robotics, digitalisation and advanced analytics will increase efficiency and allow for more remote, lightly manned and autonomous operations, reducing field exposure and increasing safety.”