Fugro has withdrawn its business outlook for 2020 in the face of severe COVID-19 challenges.
In a statement, the global geodata specialist said some projects cannot be executed as originally planned due to increasing travel restrictions and country lockdowns, which are impacting the business, particularly in the Europe-Africa region.
“The impact of the virus is compounded by oil and gas companies’ recently announced spending cuts due to the sharp decline in the oil price. At the same time, offshore wind is anticipated to show continued growth, though somewhat less than assumed at the start of this year,” the statement said.
“The pandemic may result in a decline in building and infrastructure activities, which could be partly compensated by government initiatives for additional infrastructure investment programmes,” it added.
The company said it would take “painful measures” to mitigate the impact of the virus on its business, including minimising the hire of short-term charters, implementing a hiring and salary freeze and measures to reduce our workforce.
Fugro said it is assessing all available possibilities for government support to bridge this difficult period, adding that current liquidity is good with over €400m available in cash and committed facilities.
“At this stage, it is impossible to forecast the magnitude and duration of the impact of the virus and oil price development given the limited visibility on how this global crisis will unfold,” the statement said.
“Therefore, Fugro withdraws its earlier guidance for 2020 and will provide further information on 30 April, with the publication of its first quarter trading update,” it said.
Fugro chief executive Mark Heine said: “Our priorities in this complex environment are clear: preserve the health and wellbeing of our people and those of other stakeholders, ensure business continuity and reduce costs and capex in order to protect liquidity and profitability.”