Robust backlog drives Fugro’s revenue increase

Fugro has reported a revenue of €465.8 million for the first quarter of 2023, representing an increase of 27.5 per cent, said to be especially related to offshore wind site characterization solutions, with all regions reporting double-digit growth.

Overall, revenue in marine was €335.1 million, up by 34.7 per cent, as a result of increasingly substantial energy transition roadmaps in numerous countries, in combination with renewed interest in traditional energy sources, specifically gas, to support energy security, Fugro said.

Furthermore, revenue in land increased by 12.1 per cent, to €130.7 million, supported by nearshore activities for offshore wind and LNG developments.

“These first quarter results represent a further step-up in our performance. I am particularly pleased with the strong margin and cash flow improvement, with all four regions contributing,” said Mark Heine, Fugro’s CEO.

“We are delivering on the ongoing significant client demand, in particular for our offshore wind farm site characterisation solutions, resulting in higher vessel utilisation and better pricing. In our land business, we report a continuation of the performance improvement as demonstrated over the past quarters.”

The 12-month backlog was up by 22.4 per cent in all regions, most notably in marine site characterization, while the land backlog declined, said to be mainly as a result of portfolio rationalization.

Vessel utilization was 68 per cent versus 61 per cent in the comparable period last year.

“Our robust backlog provides support towards our mid-term margin. In order to remain successful in capturing the market opportunities and realise controlled growth, we continue to invest in project execution, our people and asset base,” Heine said.

Fugro received €9.9 million in proceeds from the divestment of its remaining non-core interest in Global Marine Group. Operating cash flow increased by €29.3 million to €42.2 million due to higher profitability, partly offset by higher growth-related working capital, resulting in a free cash flow of €15.6 million

For 2023, Fugro expects ongoing growth in the infrastructure, water and energy markets, in particular renewables, resulting in ongoing strong revenue growth.

Capex is estimated at €200-225 million, including the acquisition of two geotechnical vessels, and investments in Fugro’s uncrewed vessel strategy and net zero roadmap.

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