Fugro: Growth in revenue and net profit in 2011
Key figures (in EUR million) 31 December 2011 Change 31 December 2010
Revenue 2,577.8 13.0% 2,280.4
EBITDA 581.0 3.5% 561.1
EBIT 349.3 (0.6)% 351.5
Net result 287.6 5.7% 272.2
Net margin (%) 11.2 11.9
Basic earnings per share (EUR) 3.63 4.6% 3.47
Proposed dividend per share (EUR) 1.50 1.50
Cash flow 526.9 7.6% 489.8
Investments 320.9 443.8

Business development
The global economic recovery expected in early 2011 failed to materialise. The continuing growth in a number of countries, particularly in the Far East, was largely offset by stagnation in Europe and the Middle East. Europe and the USA are still suffering the aftermath of the financial crisis that started in 2008, while the political changes in the Arab world and North Africa are slowing down economic developments in those regions.

The demand for energy remained stable, as also reflected in oil prices of around USD 100 per barrel (WTI). As a result, and in order to meet the expected increase in future demand, the oil and gas industry has increased its spending on global exploration and production. Oil and gas will remain important in the coming years. Although use of energy from renewable sources such as offshore wind farms is growing rapidly, it still only makes a small contribution globally. The disaster that struck the Japanese nuclear power plant following the earthquake and tsunami caused many countries to reconsider the use of nuclear energy.

Many of Fugro’s activities are related to energy, and the above global developments have resulted in an increasing demand for our services in various activities, but fell short of earlier expectations. This applies specifically to marine seismic surveys and support services for offshore installations, where prices remained under pressure throughout the year. The fact that marine seismic activities in the Gulf of Mexico failed to recover after the 2010 Macondo incident meant that there was still overcapacity of seismic vessels in 2011. Demand for offshore construction-related services picked up slightly during the year.

The picture in other sectors in which Fugro operates showed regional variations. Demand for services for large infrastructure projects in Europe and the United States, for example, was weak. Although activities that largely depend on government funding, such as infrastructure, aerial mapping and construction, were generally under pressure in the ‘old economies’, this was offset by growing demand in emerging regions such as Brazil, China (Hong Kong) and Western Australia. Mining-related work is recovering strongly after a few difficult years, thanks in part to the broader range of services which we can now also offer in onshore oil and gas exploration.

The growth in revenue that occurred in the first half of 2011 continued during the rest of the year, with second-half revenue increasing by more than 13% compared to the corresponding period in 2010. As a result, Fugro achieved record revenue for the year of EUR 2,577.8 million. The increase was mainly attributable to the Survey and Geoscience divisions, while the Geotechnical division’s revenue was at the same level as in the previous year.

Continuing price pressure in a number of sectors and costs needed to integrate acquisitions completed in 2011 resulted in a slightly lower net profit margin of 11.2% (2010: 11.9%). In absolute terms, however, net profit for the year of EUR 287.6 million exceeded that of any previous year.

The afore mentioned matters also impacted the EBIT.

Fugro’s financial position is solid and was further secured in 2011 by the decision to expand our long-term borrowing facilities. This helped us to continue an active acquisition strategy designed to reinforce market positions, broaden our range of services and to support further growth in the future. Our program for investing in new vessels, specialised equipment and ROVs will also support continued organic growth.

Fugro’s broad range of services enables the company to offer one-stop-shopping solutions to clients for complex projects. This applies both for new oil and gas developments, as well as large infrastructure projects such as harbour extensions and offshore wind farms. Fugro also has extensive capacity in equipment and expertise for the exploration of valuable mineral resources.


tijd 10.03
Fugro EUR 51,31 -1,82 en 296.000 sts omzet.