Offshore Wind Shines Bright for Fugro Yet Again

Fugro has reported a revenue of EUR 1.76 billion for the whole year of 2022, representing a 14.8 per cent growth in comparison to 2021, said to be due to a 42 per cent increase in offshore wind.

Infrastructure and oil & gas were also up, with 7 per cent and 9 per cent respectively. Marine revenue increased by 12.9 per cent, said to be driven by site characterization.

EBITDA amounted to EUR 230.4 million, compared to EUR 175.6 million in 2021, and net result to EUR 74.1 million.

The utilization of Fugro’s owned and long-term chartered fleet was unchanged compared to 2021 at 72 per cent. In land, the early cycle activities showed the strongest increase, in particular nearshore activities for offshore wind and LNG developments.

In marine, Fugro said it was successfully passing on higher cost for fuel, charters, and third-party personnel, while the strong growth in site characterization requires the additional mobilization of vessels, which resulted in delays.

The 12-month backlog increase by 37.5 per cent is supported by all regions and business lines, reflecting both volume and price increases, the company stated.

In the fourth quarter of 2022, revenue increased by 8.5 per cent compared to a particularly strong growth in the same period in 2021, supported by high client demand in the renewables market.

The EBIT margin declined compared to Q4 2021, as a result of disappointing operational performance in marine site characterization in the Americas, Fugro noted.

“I am pleased with the solid improvement in our margin and operating cash flow, while investing in further growth to benefit from buoyant markets. We experience particularly high demand for our offshore wind site characterisation solutions, of which the major geotechnical contract for Energinet’s North Sea I wind development is a prime example,” said Mark Heine, Fugro’s CEO.

“The rapid growth provides many opportunities, but also comes with challenges, as supply chains and legislative frameworks are still being developed. While offshore wind developments are gearing up, we also see renewed interest in traditional energy sources, in particular gas, to support energy security, which is high on the agenda of many countries.”

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

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

“We are making good progress implementing our ambitious net zero roadmap, resulting in a further decline in vessel emission intensity by 7% in 2022. In combination with an increase in the percentage of women in senior management positions to 19%, we are delivering on our sustainability targets embedded in our business strategy,” Heine said.

“For 2023, we are well positioned to make further progress towards our mid-term targets. Supported by a strong backlog at improved price levels, we are stepping up our investment levels. In the second half of the year, we plan to update the market on our ambitions and roadmap for the next phase for the company.”