Fugro has recorded third-quarter 2016 revenue drop of some 22 percent, compared to the same time last year.
The revenue drop was mostly caused by the downturn in the oil and gas services market, leaving the Dutch subsea and survey specialist with revenue of €474 million (approximately $521 million), against €611 million ($671 million) in the prior-year comparable period.
The company said it managed to reduce its net debt by €42 million in the quarter to €425 million.
In addition, Fugro has launched a subordinated convertible bond of approximately €150 million with an increase option of up to €40 million. The proceeds are expected to be used for early repayment of part of the United States Private Placement notes (USPP).
Backlog for the next 12 months decreased by 19.8% on a currency comparable basis compared to a year ago. Backlog was flat compared to the previous quarter.
Paul van Riel , CEO, said: “Fugro is coping with the tough oil and gas market conditions by focusing on market share, utilisation levels and continuous adjustment of cost base and capacity. As a result, we are generating good cash flow. EBIT margin in the quarter was supported by a solid performance in our renewables and building and infrastructure business.”
Regrouping of activities
“We are also making good progress with the implementation of our strategic road map. We are building a truly customer centric and more efficient organisation by combining our services into integrated value propositions for our customers. To achieve this we are regrouping our geotechnical, survey and subsea activities into site characterisation and asset integrity business lines within two divisions: Marine and Land,” said Paul van Riel.
According to Fugro, the change in reporting structure is expected as of 2017.
The company added that its restructuring is ahead of plan with a year-to-date reduction of 1,120 employees, and active fleet by 5 vessels. For the remainder of the year, more reductions will be made as needed, Fugro noted.
Subsea World News Staff