Growth in Fugro’s offshore wind business helped limit an over 12% decline in its revenues caused by the impact of Covid-19 and the downturn in oil and gas in 2020.
The expansion of offshore wind and cost reductions supported margin recovery to 6.5% in the second half-year compared to 0.6% in the first six months of 2020.
In the second half of 2020, 59% of revenue was generated in renewables, infrastructure, nautical and other non-oil and gas-related markets.
Adjusted EBITDA across the business dropped to €162m in 2020 from €184.9m the previous year.
The directors, however, reported strong free cash flow of €105.4m thanks to exceptionally strong working capital performance, resilient EBITDA and proceeds from the sale of Global Marine.
At the end of the year, Fugro had a 12-month backlog of €866.2m, an 8% decrease compared to a pre-Covid backlog at the end of 2019.
In 2021, Fugro intends to continue to focus on managing costs and cash flow, and on operational and commercial excellence, with the aim of improving the margins.
Chief executive Mark Heine said: “In 2020, the Covid-19 virus took hold around the world and affected all of us.
“Fugro’s results reflect our resilient operating model, which enabled us to quickly respond to the impact of the pandemic and to continue to benefit from very strong growth in offshore wind.
“Despite the operational complexities and in close cooperation with clients, we have been able to continue working on the majority of our projects, while maintaining health and safety as a first priority.
“To protect our profitability and liquidity, we have acted decisively by promptly implementing a comprehensive cost reduction programme.
“In combination with the strong growth in offshore wind, this resulted in recovery of margins in the second half of the year, despite significantly lower revenue.”
“With almost 60% of our revenue coming from offshore wind, infrastructure, nautical and other non-oil and gas markets in the second half of the year, the diversification of our portfolio is well underway.
“We expect to return to more normal market conditions in the second half of the year.”