The offshore oil and gas market continues to grow despite geopolitical developments and concerns over reduced global economic growth, said the Dutch multinational Fugro.
"The outlook across Fugro’s market segments is positive as offshore wind, oil and gas and infrastructure markets continue to grow," said a statement from the provider of geo-intelligence and asset integrity solutions for large constructions, infrastructure and natural resources.
The energy transition which is needed to reduce CO2 emissions and mitigate climate change, is a strong driver for Fugro’s services, particularly in the offshore wind market, it said.
Adjusted EBIT margin of Fugro’s core business improved to 4.2% in 2019 from 1.9% previous year, driven by improved performance of the marine business, in particular in the fast growing offshore wind market.
Mark Heine, CEO said: "The marine business performed significantly better, as a result of higher activity levels, better pricing and disciplined cost management, thus benefiting from operating leverage. We are involved in site characterization projects for offshore wind farms, all over the world, which is a clear example of the role we play in the energy transition. In oil and gas, we benefit from a return to healthy levels of offshore investments, including deep water."
The Geo-data specialist said that with 5.7%, revenue growth marine activity was strong, on top of the exceptionally strong increase last year, driven by site characterization activities for offshore wind farms and hydrography, especially in Europe-Africa and Americas.
Marine asset integrity revenue decreased slightly, despite good growth in three of the four regions, as a result of the rationalization of the business line in Asia Pacific. Vessel utilization was 72%, in line with last year’s 73%, combined with an increase in seasonal charters.