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HY 2017: Slower than anticipated bottoming out of oil and gas market impacts results

03 August 2017, Leidschendam | Global

Growth in building & infrastructure and power segments

▪ Year-on-year revenue decline of 14.5% on a currency comparable basis, reflecting ongoing
  underinvestment in the offshore oil and gas market. The decline was less than during the last two years.
▪ EBIT margin (excluding exceptional items) declined to - 3.3%, mainly caused by continued price pressure
  in the Marine division and low utilisation at Seabed Geosolutions; marine asset integrity and land businesses
  improved compared to prior year.
▪ Additional measures being implemented to streamline business processes and further reduce
  cost, in order to restore profitability.
▪ Negative cash flow of EUR 66.1 million was to a large extent related to seasonality.
  Cash flow in the comparable period last year was negative EUR 44.3 million excluding
  EUR 111.1 million proceeds from certain asset disposals.
▪ Net debt/EBITDA of 2.2, well below covenant requirement of under 3.0.
▪ Backlog for the next 12 months is bottoming out with a decrease of 5.5% on a currency comparable
  basis compared to a year ago and 2.4% compared to the end of March.
▪ Outlook 2017: For the full year Fugro anticipates a decrease in revenue, however less severe than during
  the first half. The EBIT margin is expected to improve significantly during the second half year compared
  to the first, resulting in a negative low single digit margin (excluding exceptional items) for the full year.
  Cash flow from operating activities after investments is anticipated to be positive excluding the purchase
  of the REM Etive vessel (at conditions significantly more beneficial than a renewed charter agreement).

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