Fugro’s revenues are strong despite inflationary and supply chain pressures

Fugro recorded sales of 833 million euros for the first half of 2022, an increase of 17.2% compared to the same period last year, driven by growth in all markets, in particular strong customer demand for renewable energy services.

Fugro’s fleet utilization was 67% in the first half, compared to 69% in the same period last year, which is believed to be due to a relatively large number of scheduled dry-dockings in the first quarter and the second quarter. related increase in the number of short-term charters.

The EBIT margin improved to 4.6% from 2.5% last year, thanks to site characterization activities.

First-half operating cash flow increased, offset by €65.2 million of capex, due to a higher number of dry dockings scheduled this year and the major conversion of the Fugro Quest to a vessel Geotech. As a result, free cash flow amounted to 74.9 million euros, the Dutch company said.

Net debt amounted to 389.2 million euros compared to 292.7 million euros at the end of 2021.

The order book over 12 months increased by 21.7%, supported by all regions and all businesses.

Source: Fugro

“Amid geopolitical uncertainty and volatile markets, we are experiencing strong customer demand for energy transition and climate change adaptation solutions across the globe,” said Marc HeineCEO of Fugro.

“Particularly for offshore wind developments, activity levels are high. Due to the tragic war in Ukraine, energy security is now firmly on the agenda of countries around the world and underpins our traditional energy activities.

In the second quarter of 2022, revenue increased by 12.8%, to 467.7 million euros. Oil and gas revenue growth was flat year-over-year, while vessel utilization was 74%, down from 71% in the second quarter of 2021.

Fugro said the EBIT margin improved despite higher cost levels and supply chain pressures, which primarily affected the shipping business. Inflationary pressure has been greatest for fuel, charters and third-party personnel, while supply chain issues have led to delays in vessel mobilization.

“Our EBIT margin has improved, and I am pleased that in addition to Europe-Africa, the Americas, Asia-Pacific and Middle East & India are once again contributing to the group’s performance”, Heine said.

“At the same time, the uncertain macro-economic environment, intensified by the war in Ukraine, has led to a sharp increase in inflationary and supply chain pressures in recent months, particularly in the maritime sector. However , in good cooperation with our customers, we managed to partially mitigate the impact of these unprecedented price increases.

New ordinary shares

Fugro also announced that it raised approximately €116 million by issuing 10,319,036 new ordinary shares at an offer price of €11.25 per new share through an accelerated bookbuilding.

The offer represented approximately 10% of the issued and outstanding share capital of the company.

Fugro expects to use the net proceeds of the offering, in conjunction with the previously disclosed new sustainability-linked bank financing agreement, consisting of a three-year, €200 million revolving credit facility and a term loan of €200 million over three years to refinance indebtedness, including a potential put investor of the outstanding 2024 convertible bond and for general corporate purposes.

Admission to listing and trading of the new shares on Euronext Amsterdam and delivery of the new shares are expected to take place on July 28.