Fugro has reported its first revenue increase in 12 quarters to 3.3%, in comparable terms on the same period last year, as a result of a stabilisation in the offshore oil and gas market.
“After three years of dealing with a strongly contracting offshore oil and gas market, we are pleased to report an increase in our activity level,” said Fugro CEO Paul van Riel. “Supported by the measures taken last year, results improved, but limited as we are still working on low margin contracts which were secured at the bottom of the market.”
Fugro’s first quarter update shows that revenues we up 7% to €376.7M (£329.4M), although this is reduced to 3.3% when corrected for currency fluctuations. The company’s order backlog for the next 12 months is also up 8.4% to €1bn (£920M).
“The non-oil and gas markets that are relevant for Fugro, mostly building and infrastructure and offshore wind, continue to develop positively,” added van Riel. “Especially in offshore wind, Fugro benefits from the plans for large developments in the North Sea and elsewhere. In the offshore oil and gas market, the clear increase in the number of sanctioned projects indicates that we are at an inflection point.
“Currently we are still facing oversupply and a strongly competitive environment, but we are achieving some price recovery in selected markets. We continue to focus on price improvement, cost control and positive cash flow generation.”