Fugro sees increase in revenue and maintains profit outlookCompany News // November 23, 2010
Fugro says it expects to realise revenues of more than Euros 2.2 billion over the full year 2010 (2009: EUR 2.05 billion). Baring unforeseen circumstances, the net result after tax is expected to be around Euros 260 million (2009: EUR 263.4 million). This results in a net profit margin of around 11.8 per cent (2009: 12.8 per cent). The positive effect of rates of exchange on the full year’s revenue is estimated at around 4 per cent.
Revenues in the first six months of 2010 were almost equal to the revenue in the first half of 2009. This being the case, the above-mentioned revenue outlook results in an increase of some 15 per cent in the second half of 2010 compared to the same period in 2009. The revenue increase is applicable to all three divisions of the company.
Said Fugro: "The Macondo blow out in the Gulf of Mexico is now plugged and the price of oil has stabilised at around US$80 per barrel. Based on this, it appears that the oil and gas industry will resume increasing investment levels for the development of new fields. It is expected that these investments will increase by about 12 per cent worldwide in 2010 compared to the previous year and will further increase in 2011."
"Demand for geotechnical and survey services for the development of new fields seems to be improving. For installation-related work such as ROV services, this will only become noticeable in the course of the next year, due to the project phasing."
"There is good demand for marine seismic, but this has not yet resulted in restoring rates for contract work in this segment as other players continue to give priority to securing backlog through low pricing. However, the demand for so called multi-client data remains high and price sensitivity plays a lesser role here."
As Fugro noted, at the end of August the seismic vessel Geo Coral became operational. This completed Fugro’s multiple year expansion programme.