Fugro’s marine business reported increased earnings before interest and tax (EBIT) to over €14m in the first half of 2021.
EBIT reached €14.2m compared with €9.4m in the first half of 2020.
EBIT margin increased to 3% in the first half of 2021, against 1.8% in the same period of 2020.
Revenue declined by 6.4%, a 24.2% decrease in the first quarter, which was followed by a 11.8% increase in the second quarter of 2021.
Fugro said the delta was particularly large in site characterisation, thanks to the strong growth in offshore wind projects in combination with a slight increase in oil and gas related revenue in the second quarter.
Utilisation of Fugro’s owned vessel fleet was up in the Americas, Asia Pacific and in particular Europe-Africa.
Overall, it was 69% compared to 60% in the first half of 2020, combined with a decline in the number of short-term charters. Covid-19 related mobilisation and operational challenges continued to affect operations, Fugro said.
For full-year 2021, growth is expected to continue in the renewables, infrastructure and nautical markets.
While there are still Covid-19 uncertainties that impact the business, Fugro said it expects revenue growth, a modest margin improvement and around break-even cash flow for the full-year. Capex will be around €80-90m.
Fugro chief executive Mark Heine said: “During the second quarter, one year after the outbreak of the pandemic, we have returned to growth.
“This was largely on account of our renewables business, highlighting our leading position and flexibility to shift assets and capabilities to growth markets.”
“We continue to make progress with our diversification. Currently, 60% of our revenue is generated in renewables, infrastructure and nautical.
“This is in line with our objective to support clients with the energy transition, climate change adaptation and the development of sustainable infrastructure.
“For example, we are presently executing services for offshore wind projects for Atlantic Shores in the US and Thang Long in Vietnam, and a cable route survey for Alcatel’s new fibre-optic cable system connecting North America to Asia.”