Fugro’s marine business has reported earnings before interest and tax (EBIT) of €22m in the first half of 2022, compared with €14m in the first half of 2021.
The marine business’s EBIT margin first half of this year was 3.8% compared with 3% for the same period in 2021.
Fugro’s 12-month backlog increased by 21.7%, supported by all regions with the share of renewables in the orderbook is growing and higher than the current 25% revenue share.
Fugro CEO Mark Heine said: “Against a backdrop of geopolitical uncertainty and volatile markets, we are experiencing high client demand for energy transition and climate change adaptation solutions across the globe.
“In particular for offshore wind developments, activity levels are high.
“Due to the tragic war in Ukraine, energy security is now also firmly on the agenda of countries worldwide and supports our traditional energy activities.
“Notable recent awards include site investigations for Denmark’s largest offshore wind farm Thor and for the Hung Shui Kiu/Ha Tsuen New Development Area in Hong Kong and the creation of a 3D elevation model to support Ireland’s coastal resilience.
“By now, over 60% of our revenue is generated from offshore wind, infrastructure and water related projects.”
Recent project awards include site investigations for offshore wind farms in the UK (Norfolk Boreas and MarramWind), Ireland (Arklow Bank Wind) and Germany (Gennaker), a geotechnical site investigation at one of the newly acquired New York Bight offshore wind lease areas, plus site investigations for three offshore wind contracts in Japan and for a floating wind farm near Ulsan in South Korea.
Fugro has reconfirmed the full-year outlook of continued revenue growth and further margin expansion.
Fugro will continue to “actively manage” any impacts of geopolitical uncertainties, inflationary and supply chain pressures, and remains focused on further margin expansion towards the 2023-2024 mid-term targets of an EBIT margin of 8-12% and a free cash flow of 4-7%, on the back of higher pricing, increasing asset utilisation, disciplined cost management, operational excellence and digital transformation.