Offshore wind boosts Fugro's earnings

NETHERLANDS: Growth in its offshore wind services increased ocean surveyor Fugro's revenue in the first half of the year, the Dutch company's CEO said.

Fugro deployed its Explorer vessel to survey sites off north-east US coast
Fugro deployed its Explorer vessel to survey sites off north-east US coast

Its revenue between 1 January and 30 June 2018 of €797.4 million was 16.6% higher than in the same period a year earlier.

The Netherlands-based company’s earnings before interest, tax, depreciation and amortisation (Ebitda) also increased 21.6% year-on-year to €56.7 million.

Its order backlog shrank 2.9%, however, to €943 million by the end of the second quarter.

Fugro’s CEO Øysten Løseth said the increase in revenue was driven by "strong growth in offshore wind" as well as growth in the building and infrastructure market and a gradually recovering oil and gas market.

He added: "In the offshore wind market, where Fugro has strong positions, we benefit from large projects in the North Sea, the US and Asia.

"Strong revenue growth, in combination with last years’ cost reduction measures, has resulted in improved profitability."

Last year, the surveyors sold its marine cable laying and trenching assets to Global Marine Holdings. It also terminated two long-term charters for construction and installation vessels early, it said.

In March, Fugro started surveying a 38-kilometre route of Dutch and German transmission system operator (TSO) Tennet’s 380kV 140-kilometre Wesküstenleitung west coast line.

The line will carry power produced at onshore wind farms near Germany’s west coast to load centres in the south of the country.

It also carried out surveyed the site of the Hollandse Kust Noord offshore wind zone off the Dutch coast for the Netherlands Enterprise Agency between April and June.

The company started investigating two potential large-scale offshore wind sites for Ørsted off the coasts of New Jersey and Massachusetts, US, in December, with the work continuing into the new year.

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