Fugro results show strong revenue and profits growth with 40% increase in offshore wind


Fugro’s 2022 results show significant growth backed by high demand for the company’s offshore wind solutions.

Geo-data specialists Fugro has announced its 2022 financial results and they show ongoing strong growth in revenue and a strong performance in the wind, infrastructure and water sectors, which provided 63% of Fugro’s revenue last year.

In 2022, gross earnings increased to €230.4m, compared with €175.6m in 2021 and operating cash flow was also up by 50% to €179.4m, offset by higher growth-related capital expenditure and working capital, resulting in €23.9m free cash flow for the year. A 12-month backlog increase of 37.5% is supported by all regions and business lines, reflecting both volume and price increases.

The company says that its 2023 outlook is one of ongoing strong revenue growth and further margin expansion. Capex is estimated at €200-225m, including the acquisition of two geotechnical vessels and investments in uncrewed vessel strategy and net zero roadmap. In light of the accelerated market developments, Fugro plans to update the market on the next phase of its Path to Profitable Growth strategy in the second half of the year.

Commenting on the results, Fugro CEO Mark Heine, said: “I am pleased with the solid improvement in our margin and operating cash flow, while investing in further growth to benefit from buoyant markets. We experience particularly high demand for our offshore wind site characterisation solutions, of which the major geotechnical contract for Energinet’s North Sea I wind development is a prime example.

“The rapid growth provides many opportunities, but also comes with challenges, as supply chains and legislative frameworks are still being developed. While offshore wind developments are gearing up, we also see renewed interest in traditional energy sources, in particular gas, to support energy security, which is high on the agenda of many countries.

“In all four regions, EBIT (earnings before interest and taxes) margin for the full year improved, driven by a solid improvement in the operational performance of the land business, supported by more nearshore work on power cables for offshore wind farms and liquefied natural gas facilities. In addition, we are successful in mitigating the impacts of inflationary pressures on fuel, chartered vessels and third-party personnel, in particular in the marine environment.

“We are making good progress implementing our ambitious net zero roadmap, resulting in a further decline in vessel emission intensity by 7% in 2022. In combination with an increase in the percentage of women in senior management positions to 19%, we are delivering on our sustainability targets embedded in our business strategy.

“For 2023, we are well positioned to make further progress towards our mid-term targets. Supported by a strong backlog at improved price levels, we are stepping up our investment levels. In the second half of the year, we plan to update the market on our ambitions and roadmap for the next phase for the company.”