Fugro Warns of Disappointing First Half

Posted by Joseph Keefe
Thursday, July 10, 2014

Dutch marine services company Fugro NV has warned that weakness in the oil and gas industry, combined with technical difficulties, meant its results for the first half would fall short of expectations, hammering its shares.

Fugro, involved in the search for Malaysia Airlines' missing flight MH370, said it would make a one-off writedown of up to 350 million euros ($477.4 million) as a result of slowing growth in capital spending in the oil and gas industry, which accounts for three quarters of group revenue.

It said it would report a "low single-digit" margin, on the basis of earnings before interest and tax (EBIT), for the first six months of the year, but strong growth in the second half would partly compensate for the setback.

The full-year margin will still be down on last year.

"For sure we are in a dip," said Chief Executive Paul van Riel in an analyst call. "But we really are looking at a much better second half ahead of us and also circumstances like this do create opportunities."

Fugro shares were down 20 percent at 32.62 euros by 0927 GMT, after falling as low as 32.40 euros, their lowest in nearly five years.

The marine engineering firm said it would restructure parts of the company to raise efficiency, investing in shared services centres to lower administrative overheads. It would also slow its vessel fleet expansion programme.

The company, whose full half-year figures are due on Aug. 11, faces operational difficulties after an engine fire put its largest vessel out of use for seven weeks, and three deep-sea diving crews in Brazil went on strike.

Fugro runs a fleet of ships that carry out undersea surveying and exploration for energy and telecommunications companies that need to lay cables.

In the hunt for Malaysia Airlines' missing flight MH370, it is scouring 6,000m depths of the southern Indian Ocean to build up a detailed map of the ocean floor. ($1 = 0.7331 Euros)


By Thomas Escritt
 

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Fednav Celebrates Anniversary Trio in Cleveland

Fednav Limited held a reception on board one of its vessels, the Federal Mayumi, at the Port of Cleveland yesterday to celebrate a trio of anniversaries: the 70th

Karl Senner Inks Distribution Deal with Electronic Power Design

Karl Senner, LLC (KS) has reached a new strategic representation agreement with Electronic Power Design (EPD). Karl Senner, LLC now represents EPD in the United States marine and offshore Markets.

Finance

New Company Takes Over OW Tanker

OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday.

WRRDA: Clearing the Channel for P3 Projects

A Creative Combination for Financing Inland Waterways Infrastructure Earlier this year, the U.S. maritime industry in general, and the inland waterways industry in particular,

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

Salvage

Sunken WWII Landing Craft Refloated

LCT 7074, the last known landing craft to survive the D-Day invasion in 1944, has been refloated as part of a project to lift and save the vessel which began in March 2014,

How Difficult is it to Obtain a Jones Act Waiver?

The American Salvage Association’s Jon Waldron provides the ultimate cabotage primer. There always seems to be constant chatter about waiving the Jones Act. In reality,

Italy Region, Island Seek $274m in Concordia Damages

Officials for Italy's Tuscany region and the island of Giglio said on Monday they would seek a total of 220 million euros ($274 million) in damages from Costa Cruises,

Casualties

Avoiding the Edges of the Sea

Mariners do best when they avoid the edges of the sea – the shoals, rocks, and other hard spots.  Coming into contact with the edges of the sea at other than a

Migrant Rescue Draws Budget Concerns in the Mediterranean

Seafarers’ Rights International (SRI) has raised concerns about the implications for masters of the recent reports of the launch of the new EU Frontex operation

USCG & Ocean Safety Rescue Kayakers on Molokini Crater

The Coast Guard and Ocean Safety rescued two kayakers trapped on Molokini Crater Monday. Watchstanders at Sector Honolulu Command Center received notification at 3:20 p.

News

ClassNK Approves Niigata Dual-fuel Engine Design

Classification society ClassNK has granted approval to the design of the new 28AHX-DF dual-fuel engine developed by Niigata Power Systems Co., Ltd. The new engine

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

People in the News

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

Matson Raises 2015 Westbound Hawaii Box Rates

Matson, Inc., a U.S. carrier in the Pacific, announced that Matson Navigation Company, Inc. (Matson) will raise its rates for the company's Hawaii service by $225

Melbourne Box Pot Lining Up Bidders

Three of Australia's largest infrastructure funds plan to bid for the country's largest container terminal in a sale expected to fetch about A$5 billion ($4.27 billion) for Victoria state,

Subsea Defense

Subsea Defense & the Changing Paradigm of Submarine Programs

Technology and dynamic mission profiles have driven change in the defense industry, Hydro Group Plc Managing Director Doug Whyte, explores the changing paradigm of submarine programs,

Australian Defence Minister Says Would Not Trust Submarine Firm to Build Canoe

Australia's defence minister has said he would not trust state-owned Australian Submarine Corp (ASC) "to build a canoe", fuelling expectations that most work in

Newport News Lays Keel for Virginia-Class Sub

Newport News Shipbuilding, a division of Huntington Ingalls Industries (HII), hosted a keel-laying ceremony Saturday for the future USS Washington (SSN 787), a

Underwater Engineering

Woodside to Pick up Moroccan Acreage

Woodside advises that it has entered into a contract for an exclusive Reconnaissance Licence (RL) with the Office National des Hydrocarbures et des Mines, the

Zargon Oil & Gas Sells Hamilton Lake Assets

Zargon Oil & Gas Ltd. announces that it has entered into a definitive purchase and sale agreement to sell its Hamilton Lake property for $25 million. Property

Strategy Can Maximize UKCS potential

Companies operating in the North Sea require a cultural shift to make the most of the its potential, according to a new report from Deloitte, the business advisory firm.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2207 sec (5 req/sec)