Losses from an arbitration case in Singapore and impairments from a seismic data business saw Dutch marine firm Fugro sink to a heavy set of losses last year.
The company posted a full year loss of £101.7m for 2019, more than doubling the previous year’s deficit of £46m, despite revenues increasing 6% to £1.35billion.
Fugro partly attributed the drop to the discontinuation of certain operations from its Seabed Geosolutions joint venture, which resulted in a £63.3m impairment.
The firm said there were execution issues on three projects in the first half of the year and another case where a crew was under-utilised in the fourth quarter.
Fugro is now in the process of acquiring partner CGG’s stake in the Seabed Geosolutions business.
Excluding the “discontinued operations” Fugro’s net result was a £33m loss, compared to a £32.3m defecit in 2018.
Elsewhere Fugro also took a £21million hit after losing an arbitration case over an offshore supply ship in Singapore.
Fugro had chartered the Southern Star vessel for six years but terminated the contract after just 22 months in 2019, leading to court proceedings with Tasik Subsea.
On a pre-tax basis losses were £19million, compared to a £16m deficit in 2018, but adjusted EBITDA (earning before interest, tax, depreciation and amortisation) increased from £100m in 2018 to £153.7m.
Chief executive Mark Heine praised a “second year of recovery” with revenue once again growing, but the “land” segment of the business was “disappointing” with a drip in earnings.
He added: “We have become a much more resilient company.
“By now, around 50% of our revenue is generated in offshore wind, hydrography and infrastructure.
“In a rapidly changing world, there are ample opportunities for us to contribute to the safe, sustainable and efficient development and operation of our clients’ assets.”
Fugro has around 10,000 employees worldwide, with three offices in Aberdeen.
The firm also divested its 23% interest in UK-based Global Marine last year.