Fugro said it has seen strong revenue growth in Q2 2018, primarily from offshore wind, but said the offshore oil and gas market remains “tough.”
The company’s chief executive Øystein Løseth said, “In the second quarter revenue growth increased substantially driven by strong growth in offshore wind, growth in the building and infrastructure market and a gradually recovering oil and gas market.
“Oil companies are starting to increase their investment levels in order to meet future demand. This is reflected in strong growth of the early cyclical marine site characterisation activities.
“In the offshore wind market, where Fugro has strong positions, we benefited from large projects in the North Sea, US and Asia. Strong revenue growth, in combination with last year's cost reduction measures, has resulted in improved profitability. We are still working on low margin contracts, secured at the bottom of the oil and gas market. We do see some price recovery, however overall the offshore market is still oversupplied, resulting in a continued challenging pricing environment.”
The company had revenue growth of 16.6% on comparable basis mainly driven by renewables, oil and gas and building and infrastructure. EBIT margin turned positive as a result of significantly improved EBIT in the company's marine division.
The company said that for the remainder of 2018 it expects revenue growth on a comparable basis, a marginally positive EBIT margin and positive cash flow from operating activities after investments, dependent on revenue growth and the related working capital requirements.
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