Dutch Geological Data Specialist Fugro to Shift Focus Amid Revenue Drop

Dutch geological data specialist Fugro announced plans to cut more jobs and refocus its business segments following a decline in first-quarter revenue. The company attributed the drop to a pause in new U.S. offshore wind projects and a highly volatile global market environment.

Revenue for the first quarter fell by 11.1% to 450 million euros ($510.12 million) year-on-year, in line with an earlier earnings warning issued by the company. Fugro’s CEO, Mark Heine, stated, “We expect ongoing impacts of these market uncertainties into the second quarter. Our immediate priority is the continued implementation of measures to safeguard profitability and cash flow.”

Despite the challenges, Fugro reported a first-quarter earnings growth of 0.2% before interest, taxes (EBIT) margin, slightly below analysts’ expectations of 5.8%. The company, however, maintained its annual EBIT margin target of 11% to 15% by implementing cost-cutting measures and reallocating resources to other regions and business segments.

One of the key areas of focus for Fugro is the expansion into the critical minerals market while remaining active in sectors such as oil and gas and data center development in the U.S. and other regions like South America and the Middle East. The company is also planning further layoffs in the U.S. and the Middle East as part of its restructuring efforts.

Fugro has scaled back operations in the U.S. and anticipates no work in the U.S. offshore wind sector this year, which represents around 7% of its total revenue. The company is taking proactive steps to navigate the challenging market conditions and ensure long-term sustainability.

With a focus on adapting to market dynamics and optimizing its business operations, Fugro is poised to weather the current uncertainties and emerge stronger in the future.

Source: Reuters – Reporting by Alban Kacher; Editing by Christopher Cushing, Eileen Soreng and Kim Coghill