Fugro's growth 'mainly driven' by wind

NETHERLANDS: Expansion of offshore wind activities and the recovery of the global oil and gas market have boosted Fugro's revenue in the third quarter.

Fugro deployed its Pioneer vessel to survey Iberdrola's Baltic Eagle site for unexploded ordnance
Fugro deployed its Pioneer vessel to survey Iberdrola's Baltic Eagle site for unexploded ordnance

The Dutch company recorded revenue of €434.7 million during Q3, up 19.4% year-on-year, in its third quarter results.

Its backlog for the remainder of 2017 (€366.9 million) and for the next 12 months (€916.8 million) were also up 5.2% and 5.7% year-on-year respectively.

Mark Heine, Fugro’s CEO, said that this growth was "mainly driven by offshore wind and oil and gas market recovery".

The company had blamed an "exceptionally deep downturn in oil and gas services" for a decline in revenue in 2017, but in its last two quarterly reports Fugro noted solid performance in offshore wind earnings.

Heine added the company was experiencing "sharp growth" in its "early cyclical marine site characterisation activities".

Revenue from site characterisation contracts increased by 69.8% to €168.2 million, Fugro stated.

This reflected "a higher workload in both the oil and gas and renewable markets globally", the company added.

Fugro was awarded a contract to carry out geophysical surveys and identifications and clearance of unexploded objects (UXO) for transmission system operator (TSO) Tennet at the site of Vattenfall’s 700MW Hollandse Kust Zuid wind farm.

It also won a contract from developer Deepwater Wind for a geophysical site survey off the north-east coast of the US.

Fugro started investigating the site of Iberdrola’s 476MW Baltic Eagle wind farm off the island of Rügen, north-east Germany in September.

The surveyor repaid in full a loan it received following the sale of its non-core trenching and cable-laying business in the quarter. It sold the businesses in November 2017.

Fugro added the outlook for its market segments — it also surveys sites of infrastructure projects on land — was "positive".

It expects offshore wind developments will continue to grow and that it believes the oil and gas market is gradually recovering.

Heine said Fugro plans to present a strategy update on 14 November.

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