Strong improvement in Fugro’s seabed geosolutions business and higher margins in its survey and offshore geotechnical operation have boosted the company’s first half results.
Furgro has reported revenue growth of 4.3% to €1.24bn (£840M) for the first six months of this year, compared to the same period last year.
The revenue generated a 34% increase in EBITDA to €197.7M (£138.2M).
“We have made good progress with the implementation of our 2015 management agenda: focus on profitability, cash flow and strengthening of the balance sheet,” said Fugro CEO Paul van Riel. We are pleased with the completion of the divestment of the multi-client library. The other planned portfolio changes are ongoing and are taking more time under the current market circumstances.
“The further deterioration of the oil and gas market has resulted in reductions of our customers’ project budgets, causing revenue decline and margin pressure for oil services companies such as Fugro. We do not expect the market to recover in the foreseeable future.
“We are managing through this downturn by proactively reducing costs and implementing performance improvement measures. This has resulted in an improved margin, in particular in seabed geosolutions and also in survey and offshore geotechnical.”
According to van Riel, the prospects for its geotechnical business are good and the company has recently won several new contracts, which he described as “important”. This includes the site investigation work on one of Europe’s largest infrastructure projects: the Fehmarnbelt Link tunnel between Denmark and Germany, where the client requires independent advice for the design and execution of this important construction project.