Fugro Nv · EURONEXT:FUR
Fugro Nv — Q3 2015 Earnings Presentation
11 slides from Fugro Nv's earnings presentation, Oct 30, 2015
Slide 1: Fugro Q3 2015 trading update
Fugro Q3 2015 trading update 30 October 2015
Slide 2: Highlights Q3 2015: Improved EBIT margin under continuing challenging market conditions
Highlights Q3 2015: Improved EBIT margin under continuing challenging market conditions Good progress implementation management agenda Profitability: EBIT margin improved Y-on-Y Cash flow: positive year-to-date Balance sheet: Ratios well within covenants Agreement on key conditions 5-year
Slide 3: Financial highlights Q3 2015
Financial highlights Q3 2015 Y-on-Y revenue decline of 13.2% or 21.5% on currency comparable basis, in line with oil and gas market developments Mid-single digit EBIT margin (excluding exceptional items); Y-on-Y improvement mainly due to Seabed Geosolutions Due to deteriorated market outlook,
Slide 4: Cost reduction and performance improvement measures ahead of schedule
Cost reduction and performance improvement measures ahead of schedule Cost reduction ahead of schedule Headcount : 1,054 net reduction achieved versus YE 2015 target of 950 Vessel fleet: YE 2015 reduction target achieved: Geotechnical: from 18.1 11 18.8to 7 vessels 11.8 Survey: 10-15% reduct
Slide 5: Geotechnical division: onshore margin weak, offshore improved
Geotechnical division: onshore margin weak, offshore improved Onshore revenue: + 8.6% or - 3.3% on currency +0.0% comparable basis 204.1 204.1 Onshore margin: lower Y-on-Y part of client base impacted by low oil price Offshore 93.3 83.9 continuing underperformance in Africa Offshore revenu
Slide 6: Survey division: some margin decline in difficult market
Survey division: some margin decline in difficult market Revenue - 6.0% or - 12.8% on currency - 6.0% comparable basis 228.7 Lower oil and gas related revenue 215.0 geophysical surveys construction support metocean In part compensated by more work in non-oil & gas, eg hydrography and cab
Slide 7: Subsea Services division: steep revenue and margin decline
Subsea Services division: steep revenue and margin decline - 44.5% Revenue - 44.5% or - 48.3% on currency comparable basis 192.9 strong deterioration of the subsea services market completion early this year of large Great Western Flank project mid-single digit EBIT loss due to revenue 107.1
Slide 8: Seabed Geosolutions: strong year-on-year margin improvement
Seabed Geosolutions: strong year-on-year margin improvement Revenue + 20.6% or – 0.7% on currency +20.6% comparable basis 84.9 robust operational performance of OBC projects offset by start of transit/ remobilisation period 70.4 of SW crew and OBN crew EBIT margin in line with HY15 margin, c
Slide 9: Key terms new 5-year refinancing agreed
Key terms new 5-year refinancing agreed All covenants met Financing 2Q15 3Q15 adjusted Agreement with main financiers on key realisation realisation covenant conditions of refinancing of current revolving Fixed charge credit facility: 2.8 2.9 > 2.0 cover commitments from banks for EUR 500 Net debt
Slide 10: Backlog next 12 months: decline in line with market
Backlog next 12 months: decline in line with market 12 month backlog Currency comparable growth (x EUR million) 3Q14 HY15 3Q15 Y-on-Y Q-on-Q onshore Geotech 277 312 270 - 7.9% - 12.2% offshore Geotech 186 144 115 - 40.1% - 17.5% Geotech total 463 456 385 - 20.8% - 13.9% Survey 645 566 494 - 25.1% -
Slide 11: Outlook: challenging market continues
Outlook: challenging market continues We expect coming quarters to be difficult Oil & gas clients are indicating further cuts in E&P spend in 2016 No rebalancing or recovery of oil price expected for foreseeable future Infrastructure, hydrographic and offshore wind farm markets continue to pro