Fugro is confident that it will achieve its revenue growth target of 2024 as the wind and LNG markets stabilize.

The CEO of Dutch geological data specialist Fugro said that the company is confident in meeting its target of mid-single-digit revenue growth for full-year, as it anticipates the wind energy and LNG market to stabilize after next week's U.S. elections.

Fugro shares fell up to 21.3% Friday, after the company announced a 21% drop in revenue for the Americas due to the postponement offshore wind, carbon storage & storage and liquefied gas projects in the United States.

These sectors receive geological data from the company. The company's revenues in the Middle East fell by 21%.

Mark Heine, CEO of the company, said that he expected multiple projects to resume, particularly in South America that were put on hold because of political uncertainty, after the U.S. Presidential election on November 5. He cited ongoing discussions about a "large LNG project" that is yet to be disclosed in Mexico and Guyana.

In the short term, he also expects to see an increase in orders, after a July ruling against the Biden Administration's suspension of approvals for LNG export applications. He anticipates that the backlog will grow by 25% over the next twelve months.

Fugro CEO, said that "activity levels have already picked up and we believe that this will further stabilise after the elections", adding that recovery is not heavily dependent on the next U.S. President.

Fugro also faces delays in commissioning some offshore wind project in the United States due to renegotiation with a blade maker on pricing and supply issues.

(source: Reuters)