Fugro has expanded its margin in the first half of 2024, driven by a diversified revenue mix where renewables now represent 40% of the total. The company achieved a 7.1% revenue growth, mainly due to increased client demand in offshore wind, although this was slightly offset by a decline in the oil and gas sector. For the first time, revenue from renewables (40%) surpassed that from oil and gas (35%).
Fugro reported an improvement in its results, with EBITDA margin reaching 20.5% and EBIT margin at 13.2%. This performance was particularly notable in the Marine segment within the Europe-Africa region. The company's net result increased to EUR 112.5 million, while operating cash flow expanded to EUR 187.0 million, despite higher working capital requirements. Additionally, Fugro's 12-month backlog grew by 16.6%, supported by growth in all regions.
Revenue from Marine activities increased by 10.9%, attributed to the expansion and higher utilisation of Fugro's geotechnical fleet, despite an overall utilisation drop to 69% from 73% the previous year due to lower utilisation of the geophysical fleet. Land revenues decreased by 3.5%, primarily due to fewer nearshore liquefied natural gas (LNG) projects in the United States, with the most significant impacts seen in the second quarter, resulting in overall revenue growth of 5.5%. Fugro expects revenue growth to pick up in the second half of the year, supported by a strong backlog. The company anticipates continued revenue growth driven by renewables, maintaining an EBIT margin around 13% for the full year 2024.
