Major developments in the first half of 2010

• Revenue in the first half of 2010 increased by 0.7% to EUR 1,042.4 million (first half of 2009: EUR 1,035.3 million).

• The net result for the first six months of 2010 decreased by 10.1% to EUR 101.0 million (first half of 2009: EUR 112.4 million).

• In a number of activities price pressure continues. Nevertheless the decrease of the net result was limited as a result of the company's market position and focus on securing utilisation for key assets.

• Sofar there is little impact from the Macondo oil spill on Fugro's activity. About 6% of the total revenue of Fugro is generated in the USA part of the Gulf of Mexico. A substantial part is related to servicing existing production and is not affected by the exploration moratorium.

• In the first half of 2010 two new-build vessels were added: the chartered seismic vessel Geo Caspian and the Fugro owned survey vessel Fugro Searcher.

• Fugro placed orders for two new survey vessels and two new specially designed geotechnical vessels for deepwater work in order to have in time capacity available for future expansion in these segments.

• Interra S.A., Chile and its sister company TerraLaser S.A., Peru were acquired in June 2010. The annual revenue is EUR 3.0 million and the purchase price amounts to EUR 2.0 million.

• New facilities in Macae, Brazil, supporting the marine operations with some 850 staff, were officially opened in the second quarter of 2010.

Outlook

• Barring unforeseen circumstances, and assuming reasonably stable exchange rates, Fugro expects that the revenue for the whole of 2010 will be approximately EUR 2,200 million (2009: EUR 2,053.0 million) with a net result of around EUR 260 million, which is comparable to the full year result over 2009 (EUR 263.4 million). This will result in a net profit margin of 11.8% for the whole of 2010 (2009: 12.8%)

• Activities related to exploration continue to experience price pressure.

• The longer term impact (if any) of the oil spill in the Gulf of Mexico cannot be assessed at this stage.

• The previously initiated investment programme, which includes the refitting and renewal of the marine fleet, is progressing in line with plan.

• The order backlog for the coming six months amounts to EUR 1,038 million (end June 2009: EUR 931 million).

Key figures 30 June 2010 30 June 2010 compared to 30 June 2009 30 June200
Financial data (EUR x million)
Net result 101.0 (10.1)% 112.4
Revenue 1,042.4 0.7% 1,035.3
Result from operating activities (EBIT) 139.0 (21.3)% 176.6
Cash flow 204.9 (0.1)% 205.1
Investments 166.3 72.3
Assets under construction 18.8 79.2

Per share (in EUR)
Basic earnings 1.30 (12.8)% 1.49
Diluted earnings* 1.27 (14.2)% 1.48
Cash flow 2.63 (3.7)% 2.73
Number of employees 13,434 (2.2)% 13,742

* After dilution effect of the share option scheme.

Results first half of 2010

In the first half of 2010 some signs of recovery from the financial crisis that kept the world in its grip in 2009 became noticeable. These fragile recovery signs were tempered by financial problems in a number of European countries. Moreover, a disaster in the Gulf of Mexico took place. A large oil spill resulted in an exploration moratorium for offshore USA and deferral of potential new exploration opportunities in USA waters.
These uncertainties are causing some clients to exhibit restraint in their activity, while large oil and gas companies and national oil companies continue their longer term investment plans.
The performance in the first half year was affected by the continuing price pressure in a number of activities as well as some delays in marine operations in the beginning of the year as a result of bad weather.

Revenue for the first six months of 2010 amounted to EUR 1,042.4 million (first half of 2009: EUR 1,035.3 million), an increase of 0.7%, almost the same as achieved in the first half of 2009. Revenue decreased organically by 5.1% and increased 0.7% as a result of acquisitions. The foreign currency effect was 5.1% positive.

The net result for the first six months of 2010 was EUR 101.0 million - 10.1% lower than the EUR 112.4 million achieved in the first half of 2009. As a result of good resource utilisation and the company's market position, the decrease in the net result was limited.

Growth of revenue
(In % compared to first half of 2009)
Organic (5.1)
Acquisitions 0.7
Exchange rate effects 5.1
Total 0.7

The EBIT for the first half of 2010 was EUR 139.0 million. This is 21.3% lower than the EBIT in the first half of 2009 (EUR 176.6 million). The EBIT in the first half of 2010 was affected by the earlier mentioned delays in the marine operations in the first part of the year due to bad weather. It is expected that the effect of this will flatten out over the full year.
Lower financing costs of EUR 18.7 million (mainly due to lower exchange differences of EUR 15.0 million) and a lower tax charge of EUR 7.5 million caused the difference on a percentage basis between EBIT and net result.
In the first part of the year tender activity increased. This is reflected in the backlog showing improvement in the first half of 2010.

Working capital as per 30 June is EUR 179.5 million (31 December 2009: EUR 140.3 million). The main reason for the increase is the value of the seismic data library reflecting an increase of EUR 60 million to EUR 127 million at the end of June.

The higher balance of trade receivables is mainly caused by delayed payments from clients responding to ongoing global financial uncertainty. In the first six months of 2010 EUR 1.4 million was charged against the provision for bad debt, no material amounts were released from the provision for bad debt.

Currency effects were significant in the first half of 2010. The rate of exchange gain in the consolidated statement of comprehensive income is EUR 3.4 million (first half of 2009: EUR 11.6 million negative). The exchange differences were mainly caused by the strengthening of currencies such as the Australian dollar, the Brazilian Real and the Canadian dollar against the euro. This also had an impact on costs, such as personnel expenses. The average US dollar rate over the first half of 2010 was EUR 0.76 (first half of 2009: EUR 0.75).
The foreign currency translation difference for foreign operations had a positive effect on the equity per 30 June 2010 of EUR 171.1 million (30 June 2009: EUR 40.9 million positive). The majority of this translation difference relates to the US dollar.

The effective tax rate over the first half of 2010 was 24.4% against 26.3% over the first half of 2009.

As a result of the above, the net profit margin was 9.7% (first half of 2009: 10.9%).

Basic earnings per share over the first half of 2010 amounted to EUR 1.30 (first half of 2009: EUR 1.49).

tijd 17.29
Fugro in de AEX de witte raaf op EUR 45,21 +2,28 en 1,47 miljoen sts omzet.