Fugro report solid performance in Geotechnical and Survey divisions, & a good contribution from Subsea Division in the third quarter of 2013. Seabed Solutions sector the one exception.
Fugro's performance this quarter was solid, except for Seabed Geosolutions. Seasonal demand resulted in high vessel utilisation. The backlog for the next 12 months is solid and much stronger than at the end of the third quarter of 2012.
The oil and gas market, which is the main market in which Fugro operates, continues to be strong in most segments relevant to Fugro. Clients continue to invest in exploration and development of new fields and in enhancement of existing production. The second largest market for Fugro is infrastructure, where demand especially in the Middle and Far East, Africa and the Caspian region continues to be strong.
Seabed Geosolutions continues to be loss-making as utilisation needs to improve further, in particular in the shallow water / ocean bottom cable activity. In addition, Seabed Geosolutions faced a specific one-off operational incident on one of its ongoing projects resulting in the need for a partial reshoot of data.
Company financial position
Fugro states that its financial position remains healthy with net debt over EBITDA of around 1.6, comfortably below the threshold set by the company of below 2. In the quarter, CGG made an early repayment of EUR 112.5 million of the EUR 125 million outstanding vendor loan. Subsequently, on completion of the airborne related part of the divestment, a further vendor loan of EUR 100 million was provided to CGG. On balance, the vendor loan to CGG now stands at EUR 112.5 million.