Fugro to reduce costs and expenditure

Fugro announced its 2020 Q1 results that showed the impact of COVID-19 varied by region with overall revenue still in line with last year with growth in Asia Pacific but a decline in the other regions.

COVID-19 and the deteriorated oil and gas market will continue to hamper its results in the upcoming perio,  Fugro said. The company announced that it was taking measures to significantly reduce costs and capital expenditure.

Mark Heine, CEO said: “Our priorities are clear: preserve the health and wellbeing of our staff and other stakeholders, ensure business continuity and reduce costs and capex to protect liquidity and profitability. We are taking decisive and immediate action by implementing a programme to significantly reduce costs and capital expenditure. As it is impossible to forecast the duration of the current crisis and the magnitude of its impact, we cannot provide a meaningful outlook for 2020.”

Fugro said that its backlog was flat year-on-year with good order intake in January and February but  it was very low in March.

“We still experience solid growth in offshore wind and intercontinental subsea cable routing activities. In the quarter, the pandemic already had a significant impact in Europe-Africa, in addition to adverse weather conditions. The Americas and Middle East & India were slightly impacted. Asia Pacific reported a significant improvement thanks to the rationalisation of the marine asset integrity business last year,” he added.