Fugro's Revenues Dive, Sending Shares Lower
Dutch deep-sea energy prospector Fugro reported a steeper than expected drop in third-quarter revenue on Monday and said it expects negative cash flow for the full year, sending its shares down more than 10 percent. Fugro is still suffering the impact of a rout in oil prices that have fallen by more than 50 percent from mid-2014 highs, affecting its business as makes it uneconomic to prospect for the hard-to-reach subsea deposits in which it specialises.
GMG Acquires Fugro’s Trenching, Cable Laying Business
Global Marine Group (GMG) will acquire Fugro’s trenching and cable laying business in exchange for an equity stake of around 24 percent in the combined business valued at $65 million, and a one year secured vendor loan of $ 7.5 million. Fugro said it will realize a gain on this transaction, valued at approximately $73 million. GMG is a supplier of subsea cable installation and maintenance services in the telecoms, offshore renewables, power and oil and gas market segments.
Fugro Slashes Jobs, Sheds Subsea Business Unit
Marine engineer Fugro announced a further 600 job cuts and the sale of one of its business units as it battles to cut costs in response to weak oil and gas prices. The company, which specialises in prospecting for hard-to-reach subsea deposits that are uneconomic at low oil prices, saw first-half core earnings tumble by 49 percent, though CEO Paul van Riel said he hoped conditions would improve next year.
Fugro to Divest its Multi-Client Data Library to Spectrum
The multi-client library business has been non-strategic since the divestment of the majority of Fugro’s geoscience activities in 2013, and this transaction is consistent with Fugro’s strategy to focus on its geotechnical and survey activities going forward. The multi-client library consists of high quality seismic data in support of oil and gas exploration. The database contains about 1.6 million kilometres of 2D and over 140…
Fugro Cut Costs on Market Downturn
Sales down 2.1 percent, order backlog falls 11 percent. Dutch marine services company Fugro said on Wednesday it would further cut costs and reduce the number of ships in its fleet in light of the continuing downturn in the oil market affecting its customers. The company reported a 2.1 percent fall in sales to 594 million euros ($652 million) for the first quarter of 2015 from the same period a year ago.
Fugro Report Mixed Fortunes in First Half 2014
Fugro report first half-year revenue of EUR 1,186.9 million compared to EUR 1,167.9 million in first half of 2013. Year-on-year revenue growth at constant currencies of 6.2% or 7.9% excluding multi-client seismic surveys. Non-cash impairments and one-off write-offs of EUR 346.6 million due to weak results and the more challenging oil and gas market outlook. This was mostly related to the Geoscience division.
Weakening Energy Sector a Factor in Fugro Profit Slide
Following a weak first quarter and due to poorer than expected results during the past months, Fugro says it has decided to disclose preliminary non-audited information on its performance in the first half of 2014. Low single digit EBIT margin (excluding non-cash impairments). This compares to an EBIT margin of 11.4% in the same period last year, or 10.3% excluding special items1. Non-cash impairments in a range of EUR 300-350 million.
