High Offshore Wind Demand Lifts Fugro

Fugro has reported a revenue of EUR 480.2 million for the third quarter of 2022, an increase of 17.4 per cent compared to EUR 378 million in Q3 2021, said to be supported by high demand for offshore wind solutions.

The increase in revenue was fuelled by ongoing high client demand across markets, most notably renewables, and to a lesser extent infrastructure, Fugro said, adding that oil and in particular gas related revenue is increasing.

In Marine, revenue was up by 13.4 per cent, while the utilization of Fugro’s owned and long-term chartered vessel fleet was in line with the comparable period last year – 75 per cent versus 76 per cent in Q3 2021. Growth was driven by marine site characterization, especially in Europe-Africa and Middle East and India.

In Q3 2022, EBITDA amounted to EUR 83.1 million, an increase from EUR 57.8 million reported in the third quarter of last year, which, as Fugro said, resulted in a higher operating cash flow before changes in working capital.

The group’s profitability also continued its upward trajectory. The EBIT margin amounted to 10.9 per cent compared to 7.6 per cent in the third quarter of last year and 8.7 per cent in the second quarter, broad-based and supported by all regions and business lines.

Capital expenditure was higher, EUR 29.1 million compared to EUR 17.2 million last year. As a result, free cash flow amounted to EUR 69.5 million, slightly below EUR 77.4 million in Q3 2021.

The 12-month backlog increased by 33.9 per cent to EUR 1,348.3 million, again supported by all the regions.

“I am pleased to report a solid set of results. In uncertain macro-economic and geopolitical times, we continue to experience strong demand for our solutions for the energy transition and climate change adaptation,” said Mark Heine, Fugro’s CEO.

“With our solutions for the energy transition, climate change adaptation and sustainable infrastructure, we are well placed to capitalise on the strength of our end-markets, with clients seeking to secure capacity, also beyond the coming 12 months. We are making good progress on our Path to Profitable Growth and we are on track to deliver on our mid-term targets.”

Given the year-to-date realization and the strong backlog, Fugro said it expects ongoing revenue growth, margin expansion and a positive free cash flow for the whole year of 2022.

Management will remain focused on managing any impacts of geopolitical uncertainties, inflationary and supply chain pressures, the Netherlands-headquartered company concluded.

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