Focus on cost reduction and cash flow maintained
▪ Mid-single digit EBIT margin (excluding exceptional items) improved compared to the third quarter of 2014 mainly due to continued strong performance of Seabed Geosolutions.
▪ Year-on-year revenue decline of 13.2% or 21.5% on a currency comparable basis, in line with oil and gas market developments.
▪ Cost reduction and performance improvement measures stepped up and progressing ahead of schedule.
▪ Due to deteriorated market outlook, non-cash impairments expected in the range of EUR 250 - 300 million, mainly related to Subsea Services division.
▪ Key terms agreed for sale & lease back of 2 geotechnical vessels with expected net cash proceeds of around EUR 100 million in the fourth quarter.
▪ Planned portfolio changes will be selectively pursued, given the current market circumstances.
▪ Agreement reached with lenders on key conditions for refinancing of current revolving credit facility into a new EUR 500 million 5-year facility, including alignment with USPP noteholders and additional headroom under fixed charge cover covenant.
▪ Backlog for the next 12 months down by 21.8% on currency comparable basis compared to a year ago and by 8.1% compared to the end of the second quarter, confirming tough trading conditions.
▪ EBIT margin in the seasonally weak fourth quarter, compounded by the adverse market conditions, is expected to be negative (excluding exceptional items) and could result in a full year margin slightly better than last year.

Key figures (x EUR million)
unaudited Q3 2015 Q3 2014 reported growth currency comparable growth
Revenue 610.9 703.7 (13.2%) (21.5%)
Backlog remainder of the year 500.9 623.8 (19.7%) (23.2%)
Backlog next 12 months 1,341.7 1,651.7 (18.8%) (21.8%)
Net debt/ EBITDA 2.0 2.9

Paul van Riel, CEO:
“We have made good progress with the implementation of our management agenda: focus on profitability, cash flow and strengthening of the balance sheet. The implementation of the cost reduction and performance improvement measures is progressing ahead of schedule.

With our clients further reducing their E&P spend, visibility is low. We expect the coming quarters to be difficult with pressure both on activity levels and pricing, and we will continue to manage through the downturn by adjusting our resources and costs in line with activity levels.

I am pleased that we reached an agreement on the sale & lease back of some of our assets and on the refinancing of the company for the next five years, which allows us to adjust our business and to benefit from our strong market positions once the market starts to improve. Due to the current market conditions no agreement on a divestment of our non-core assets could be reached at a fair valuation. We continue to focus on our core businesses by pursuing divestment opportunities, but more selectively and phased in time.”


tijd 09.01
De Midcap 694,46 +2,17 +0,31% Fugro EUR 16,475 -42ct vol. 52.500

tijd 09./27
Fugro herstelt naar EUR 17,21 +,31ct = 1,83% vol. 212.000