Fugro has reported an 86% increase in earnings before interest and tax (EBIT) to over €97m in third quarter 2023, compared with €52m in the same period in 2022.
A 32.6% revenue growth in the quarter was driven by “successfully capturing high client demand”, mainly in the energy market, most notably in renewables and oil & gas, the company stated.
All regions reported higher margins as a result of topline growth in combination with operational efficiencies.
Driven by an “outstanding performance” in marine site characterisation, the EBIT margin amounted to 16% compared to 10.9% in the third quarter of last year and 11.8% in the second quarter of this year.
Following steep growth during the previous quarters, the 12-month backlog continues to be robust with an increase of 14.5%; all business lines report a higher backlog.
Fugro expects ongoing growth in the energy markets, in particular renewables, resulting in strong revenue growth for the full year.
The EBIT margin and return on capital employed will be within the mid-term target range of 8%-12% and 10%-15% respectively, and free cash flow is anticipated to be positive.
In the fourth quarter, Fugro will unwind the sale and leaseback arrangement for the Fugro Scout and Fugro Voyager.
Fugro will take early delivery of the vessels instead of extending the financing arrangement, resulting in a further reduction of gross debt and financing costs.
“We again realised substantially higher revenue in renewables, to one third of group revenue year-to-date,” said Fugro chief executive Mark Heine.
“Despite recent news flow around delays in several offshore wind projects, we anticipate continued growth going forward, supported by the recent launch of the ‘Wind Power Package’ in the EU,” he added.