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Fugro - augustus 2015

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Operational review
The general downturn in the oil and gas market has resulted in pressure on work volume and pricing for oil services companies. This has negatively impacted revenue, except for Seabed Geosolutions. At Seabed Geosolutions, revenue increased strongly. The lower volumes in oil and gas were partly offset by a higher workload in other market sectors.
To counter the downturn in the oil and gas market and to protect margin, a series of measures were announced and implementation is on track. The year-on-year margin improvement was driven by the turnaround at Seabed Geosolutions, due to a higher level of activity, good execution and lower costs as the result of the restructuring efforts. The Survey and offshore Geotechnical margins were slightly higher. At Subsea Services, the steep revenue decline, in combination with high operating leverage, has resulted in a loss despite the positive impact of the cost reduction and performance improvement measures.
Notwithstanding the positive EBIT development, the higher interest expenses and relatively high income tax expenses, have resulted in a small net loss.
Cost reduction measures and performance improvement
The cost reduction and performance improvement measures, which were stepped up in the course of the first half year, are on track. Highlights are:
? The headcount reduction program is on schedule, with a gross reduction of 755 employees in targeted
areas (compared to the end of 2014) partially offset by hires in specific growth areas, such as the Middle
East, resulting in a net reduction of 616.
? The vessel fleet reduction is progressing in line with plan. The geotechnical fleet has been reduced by one
vessel and will be further reduced at limited costs to seven by year-end. Before year-end, the survey fleet capacity will be further reduced by 10-15% compared to December 2014. In the first half of the year the Subsea Services division successfully terminated 1 long-term charter early, with another reduction of
1 charter anticipated before year-end.
? Capital expenditure was curtailed to EUR 87.6 million from EUR 134.2 million in the comparable period last year, in line with the 2015 target of just below the mid-term range of EUR 175 – 225 million.
? The working capital reduction initiative launched last year resulted in a reduction in days revenue outstanding to 99 days from 108 in the same period last year and 103 days at the end of 2014.
? The turnaround at Seabed Geosolutions is progressing ahead of plan.
As the market has become more challenging in the second quarter, additional measures are being implemented:
? Further headcount reduction of 200 employees in the coming half year, in particular in the Subsea
Services and Geotechnical divisions.
? An expedited transition of the remaining 30% of Fugro’s vessels to central fleet management will result in
additional cost savings and operational performance improvements from standardisation, cost efficient crewing and central procurement.
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Paul van Riel, CEO: “We have made good progress with the implementation of our 2015 management agenda: focus on profitability, cash flow and strengthening of the balance sheet. We are pleased with the completion of the divestment of the multi-client library. The other planned portfolio changes are ongoing and are taking more time under the current market circumstances. The further deterioration of the oil and gas market has resulted in reductions of our customers’ project budgets, causing revenue decline and margin pressure for oil services companies such as Fugro. We do not expect the market to recover in the foreseeable future. We are managing through this downturn by proactively reducing costs and implementing performance improvement measures. This has resulted in an improved margin, in particular in Seabed Geosolutions and also in Survey and offshore Geotechnical.
We have won several important new contracts. This includes the site investigation work on one of Europe’s largest infrastructure projects: the Fehmarnbelt Link tunnel between Denmark and Germany, where the client requires independent advice for the design and execution of this important construction project.
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Fugro HY 2015: Improved results under continued challenging
market circumstances
Increased margin pressure expected in second half year
? Year-on-year revenue growth of 4.3%; decline of 7.3% on a currency comparable basis.
? EBIT margin (excluding exceptional items) increased to 5.7% from 2.1% in the same period last year,
mainly driven by the strong improvement at Seabed Geosolutions and somewhat higher margin at Survey
and offshore Geotechnical.
? Divestment of the non-core multi-client data library completed with net proceeds of EUR 101.9 million.
? Cash flow from operating activities after investments of EUR 121.8 million, driven by the proceeds from the
sale of the multi-client data library, improved working capital and lower investment levels.
? Balance sheet strengthened; net debt to EBITDA improved to 2.0 compared to covenant requirement of
below 3.0.
? In line with market developments, backlog for the next 12 months is down by 23.9% on a currency
comparable basis compared to a year ago and by 4.4% compared to the end of the first quarter of this
year.
? Fugro expects to realise a lower EBIT in the second half of 2015, compared to the second half of 2014
(excluding exceptional items), mainly related to Subsea Services, which is confronted with a significant decline in backlog in combination with high operational leverage.
Key figures (x EUR million)
HY 2015

HY 2014
Revenue
1,237.7

1,186.9

currency comparable growth
(7.3%)
6.2%
EBITDA1 excluding exceptional items 2
197.7

147.1
EBIT excluding exceptional items2
70.4

24.9
EBIT margin excluding exceptional items (%)2
5.7%

2.1%
Net result
(9.9)

(270.6)

Backlog next 12 months
1,506.8
1,775.0
currency comparable growth
(23.9%)

9.9%
Cash flow from operating activities after investments
121.8

(88.7)
Net debt/ EBITDA3

2.0

2.3
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Niet echt florissant. Verder snijden personeelsbestand wel positief (voor aandeel, niet voor de mensen)
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WA1985
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quote:

Opletten schreef op 6 augustus 2015 08:20:

Wie stelt straks tijdens de bijeenkomst de vraag hoe het met Boka zit?
Dat is geen vraag voor van Riel maar voor Berdowski lijkt mij.
bezinteergebelegt
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Cijfertjes zijn voor de vorm, gaat de koers geen boost geven. Meest vreemde vind ik dan weer dat half mei Fugro aangeeft vergevorderd te zijn met de verkoop van Subsea en v Riel nu aangeeft dat er gesprekken lopen. Kortom, geen verrassingen mbt Subsea en/of Boka dus feitelijk teleurstellend. Strakke regie op de koers blijft dus in mijn ogen bestaan.
WA1985
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Outlook aan de zwakke kant volgens KBC Securities.
De resultaten van Fugro in de eerste helft van 2015 waren beter dan verwacht. Dit concludeerde analist Dirk Verbiesen van KBC Securities nadat de bodemonderzoeker voorbeurs de cijfers publiceerde.

De omzet van 1.238 miljoen euro was hoger dan de 1.188 miljoen die Verbiesen voorzag. Het bedrijfsresultaat (EBIT), exclusief bijzondere posten, van 70,4 miljoen euro lag nipt hoger dan de 67 miljoen euro die de analist voorzag. De consensus lag evenwel slechts op 53 miljoen euro.

Positief noemde Verbiesen naast de halfjaarcijfers ook de succesvolle turnaround bij Seabed Geosolutions.

Wel was de door Fugro afgegeven outlook voor de tweede jaarhelft zwakker dan waarop de analist had gerekend. Volgens de bodemonderzoeker komt het bedrijfsresultaat lager uit dan de 57 miljoen euro uit de tweede helft van 2014, terwijl Verbiesen rekende op 86 miljoen euro.

KBC Securities heeft een koopadvies op Fugro met een koersdoel van 28,50 euro. Het aandeel sloot woensdag 0,2 procent lager op 19,00 euro.

Door: ABM Financial News.
Info@abmfn.nl
Redactie: +31(0)20-262 29 78
dulieu
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itwm
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Typische shorters acties. Zag net dat de koers met 20 cent naar beneden werd gezet met nog geen 1000 stukjes.
apieslapie
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all in the game, degene met de langste adem wint. mijn aandelen krijgen ze ook niet!
zit ruim 8% short, komt een dag dat ze moeten coveren. remember the short squeezes fugro had?
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