Fugro’s marine business reported increased earnings before interest, tax, depreciation and amortisation (EBITDA) of €170m in 2022, compared with €145m in 2021, driven by offshore wind contracts.
In 2022, 63% of revenue was in wind, infra and water, with an over 40% increase in offshore wind, Fugro stated.
In its outlook for 2023 Fugro reported ongoing “strong revenue growth and further margin expansion”.
It stated: “Capex is estimated at €200m-€225m, including the acquisition of two geotechnical vessels, and investments in uncrewed vessel strategy and net zero roadmap.”
In light of the accelerated market developments, Fugro plans to update the market on the next phase of the Path to Profitable Growth strategy in the second half of the year.
Significant contracts in offshore wind include a major geotechnical contract with Energinet for its North Sea I wind development as well as “multiple geotechnical investigations” for the Netherlands Enterprise Agency (RVO) for the development of several wind farms, including the IJmuiden Ver Site V-VI, Nederwiek (zuid) Site I and Hollandse Kust (west) Site VIII zones.
In the US, Fugro secured a survey contract to support site appraisal and concept design activities for Community Offshore Wind project, while in the Asia Pacific region, the company secured contracts for site investigations for offshore renewable projects in Australia and Taiwan.
Fugro chief executive Mark Heine said: “I am pleased with the solid improvement in our margin and operating cash flow, while investing in further growth to benefit from buoyant markets.
“We experience particularly high demand for our offshore wind site characterisation solutions, of which the major geotechnical contract for Energinet’s North Sea I wind development is a prime example.
“The rapid growth provides many opportunities, but also comes with challenges, as supply chains and legislative frameworks are still being developed.
“While offshore wind developments are gearing up, we also see renewed interest in traditional energy sources, in particular gas, to support energy security, which is high on the agenda of many countries.”
Due to offshore wind growth, leading to “high demand for Fugro’s services and strong backlog growth”, the company has purchased two platform supply vessels, Topaz Endurance and Topaz Energy, which will be repurposed to geotechnical vessels.
The purchase of these core strategic assets also supports Fugro’s net zero 2035 roadmap, as the vessels are “significantly more energy efficient” than Fugro’s current fleet and offer options for hybrid conversions and/or alternative marine fuels in the future.