Adjusted EBIT margin of Fugro’s core business improved to 4.2% from 1.9% last year; driven by improved performance of the marine business, in particular in the fast growing offshore wind market.
Modest revenue growth, on top of a very strong increase in the previous year, due to selective tendering, prioritising profitability and cash flow over revenue growth.
Cash flow from operating activities after investing improved strongly to EUR 58.3 million.
Strong backlog growth of 9.9%, driven by Europe-Africa and Middle East & India.
Net result was positive excluding previously announced specific items, mainly related to Southern Star arbitration and impairment on Seabed Geosolutions (held for sale).
Net debt/EBITDA improved to 1.9.
Fugro announces a comprehensive refinancing of its capital structure to extend its maturity profile.
Outlook 2020: Fugro will continue to deliver on its Path to Profitable Growth strategy, capturing market opportunities, driving margin improvement and sustained free cash flow.

Mark Heine, CEO: “ I am pleased to announce a second year of recovery with continued revenue growth and margin expansion and strongly improved free cash flow. Revenue growth of 2.7% was modest but came on top of a very strong increase last year and was impacted by our focus on profitability and cash flow.

The marine business performed significantly better, as a result of higher activity levels, better pricing and disciplined cost management, thus benefiting from operating leverage. We are involved in site characterisation projects for offshore wind farms, all over the world, which is a clear example of the role we play in the energy transition. In oil and gas, we benefit from a return to healthy levels of offshore investments, including deep water. As guided, margins in our late cyclical marine asset integrity business improved considerably, as a result of the measures taken earlier and a gradually improving market.

While our land asset integrity business showed a modest improvement, the overall land performance was disappointing. This was due to a combination of a challenging geopolitical and macroeconomic environment in certain key markets, and some underperforming services in specific countries. Although the impact of the restructuring measures that are being implemented is not yet visible in our results, I am confident that these will lead to improvements during the coming quarters and structurally higher margins going forward.

We have become a much more resilient company. By now, around 50% of our revenue is generated in offshore wind, hydrography and infrastructure. In a rapidly changing world, there are ample opportunities for us to contribute to the safe, sustainable and efficient development and operation of our clients’ assets.

Furthermore, the recently announced divestment of Global Marine is expected to bring the total proceeds from our non-core stake to around USD 73 million, of which the majority will contribute to cash flow in 2020. The proceeds will be utilised to reduce Fugro’s debt position.“

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Changes to Fugro’s Supervisory Board
The Supervisory Board of Fugro has decided to nominate Ron Mobed as member of the Supervisory Board for a four-year term, as per the annual general meeting that will be held on 30 April 2020. He will fill the vacancy that arises as Maarten Schönfeld, current member of the Supervisory Board, will retire at the end of the upcoming annual general meeting due to personal reasons. Harrie Noy, current chairman of the Supervisory Board, is being nominated for an additional two-year term.
Mr. Ron Mobed (1959) has extensive management and supervisory experience at board level in major corporations. He currently serves as Non-Executive Director on the board of AVEVA, a global leader in industrial software. From 2011 until 2019, he worked at RELX Group. As the CEO of Elsevier as of 2012, partly operating from the Netherlands, he was among other things, responsible for the planning and execution of the digital strategy. From 2004 to 2011 he worked for several companies providing information and data analytics, including IHS, where he was President of the Energy division. Mr. Mobed is trained as a Petroleum Engineer and spent the first almost 25 years of his career at Schlumberger in various key technical, IT, commercial and general management roles. He is a British national with extensive international experience, having worked in the UK, the US, Africa, Asia and the Netherlands.

Harrie Noy, chairman of the Supervisory Board: "We very much regret that Maarten Schönfeld is leaving the Supervisory Board, but of course we respect his decision. Over the last seven years, as chairman of the Audit Committee and vice-chairman of our board, Maarten has been of significant importance to Fugro and we thank him for his valuable contribution. We are delighted that Ron Mobed, a proven international business executive, is willing to join our board. With his engineering background and extensive experience in IT, technology and digital transformation he is a very good fit to Fugro and its strategy in which digitisation plays an important role."

At the end of the upcoming AGM, the second four-year term of Harrie Noy will expire. Based on his extensive knowledge of Fugro and the fact that Maarten Schönfeld is stepping down earlier than scheduled, the Supervisory Board has concluded that for continuity reasons it is in the interest of Fugro to nominate Harrie Noy for reappointment for another 2 years. Petri Hofsté, currently member of the audit committee, will take over the role of chair of the audit committee as well as vice chair of the Supervisory Board. Her background and experience in the audit profession and the financial sector over the last 30 years make her very well qualified for this role.

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Fugro announces a refinancing of its capital structure
Fugro anticipates refinancing its current EUR 575 million Revolving Credit Facility and repurchasing any and all of its EUR 190 million Convertible Bonds due 2021 with a new EUR 200 million Revolving Credit Facility and the issuance of EUR 500-550 million 5-year Senior Secured Notes, and may issue new shares using its existing shareholder authorisation (up to 10% of currently issued shares).


Fugro has had sounding discussions with a select number of investors and, subject to market conditions, expects to announce further details about the Senior Secured Notes transaction imminently.

Fugro will enter into a new 4.5 year EUR 200 million Revolving Credit Facility, subject to the successful issuance of the Senior Secured Notes. The rate of interest will be EURIBOR plus a margin based on the ratio of consolidated net debt to EBITDA. The new syndicated Revolving Credit Facility, which will replace the current EUR 575 million Revolving Credit Facility, is arranged by ING, Rabobank, Credit Suisse, BNP Paribas, HSBC and Bank of China.

BNP Paribas has been retained as sole dealer manager in relation to the buy-back of any and all of the Convertible Bonds due 2021. Further details about the buy-back of any and all of the Convertible Bonds due 2021 will be announced imminently.

Fugro does not require additional shareholder authorisation for the envisaged refinancing plan.

tijd 10.43
Fugro EUR 10,245 -44ct vol. 1,5 miljoen