Fugro Sees Revenue Slip

Dutch subsea and survey specialist Fugro has posted revenue decline of some 23 percent in the third quarter of 2017, mostly impacted by lack of activity in its geoscience division.

The company’s revenue fell from €474 million in the third quarter of 2016 to €364 million for the period ended September 30, 2017.

Lower-than-expected revenue and EBIT are said to have been caused by technical down time of some vessels leading to project delays, and the impact of hurricanes in the Americas.

Fugro said it expects double-digit decline in revenue for the full year, and further decline in the fourth quarter 2017.

The company’s marine division, with revenue at €252 million, generated some 15 percent less than in the third quarter of 2016. Marine division backlog for the next 12 months stood at €508 million.

The geoscience division (mostly Seabed Geosolutions with 60 percent stake) generated no revenue during the quarter. Early next year, this business line is expected to start the industry’s largest ever ocean bottom node survey in the Santos Basin in Brazil.

For the next twelve months, Fugro’s backlog at the end of Q3 2017 stands at approximately €867 Million, against €1.06 billion in the corresponding period in 2016.

In addition, Fugro has launched a subordinated convertible bond of EUR 100 million. Proceeds will be offered to the USPP noteholders for early repayment. Pro forma net debt/EBITDA per the end of September is 1.8 including assumed proceeds of EUR 100 million from this bond.

The company has reduced its headcount by 102 employees to 10,250. As announced earlier, Fugro will continue to adjust its resources and cost base in line with activity levels. The company has also sold its cable-laying and trenching business to Global Marine Group.

Subsea World News Staff