Energy Voice | Offshore wind, recovering oil market help Fugro narrow losses

An upturn in renewable energy and oil sector work helped Dutch firm Fugro narrow its losses in the first half of 2018.

Fugro recorded first half pre-tax losses of £20.3 million, compared with a deficit of £74m last year.

Revenues increased to £709m from £688m as the oil market continued to show signs of recovery and offshore wind demand grew.

Fugro said its marine and geosciences divisions had led the improvement in its financial performance.

Key contracts included geotechnical work at the Hornsea Two wind farm site in the North Sea.

The company said it was optimistic as more oil and gas clients are sanctioning new offshore developments.

But Fugro said the market was still oversupplied, creating uncertainty about the pace of recovery.

Fugro chief executive Oystein Loseth 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 benefit from large projects in the North Sea, the United States and Asia.

“Strong revenue growth, in combination with last years’ 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.”

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