Slower than anticipated bottoming out of oil and gas market impacts results. Growth in building & infrastructure and power segments
▪ Year – on – year revenue decline of 1 4 . 5 % on a currency comparable basis, reflecting ongoing underinvestment in the offshore oil and gas market. The decline was less than during the last two years .
▪ EBIT margin (excluding exceptional items) declined to – 3.3%, mainly caused by continued price pressure in the Marine division and low utilisation at Seabed Geosolutions; marine asset integrity and land businesses improved compared to prior year.
▪ Additional measures being implemented to streamline business processes and further reduce cost, in order to restore profitability.
▪ Negative cash flow of EUR66.1 million was to a large extent related to seasonality. Cash flow in the comparable period last year was negative EUR44.3 million excluding EUR111.11 million proceeds from certain asset disposals.
▪ Net debt//EEBITDA of 2.2, well below covenant requirement of under 3.0.
▪ Backlog for the next 12 months is bottoming out with a decrease of 5.5% on a currency comparable basis compared to a year ago and 2.4% compared to the end of March .
▪ Outlook 2017: For the full year Fugro anticipates a decrease in revenue, however less severe than during the first half. The EBIT margin is expected to improve significantly during the second half year compared to the first, resulting in a negative low single digit margin (excluding exceptional items) for the full year. Cash flow from operating activities after investments is anticipated to be positive excluding the purchase of the REM Etive vessel (at conditions significantly more beneficial than a renewed charter agreement ).