Dutch geological data specialist Fugro reported stronger-than-expected core earnings on Friday, but cautioned that worsening conditions in the offshore wind sector and tighter spending by energy firms could weigh on its performance in the final quarter.
Third-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 22% year-on-year to 108.6 million euros ($126.7 million), but came in above the 89 million estimate in a company-compiled consensus.
"The fourth quarter is expected to be significantly impacted by the continued deterioration in the offshore wind market, and by the temporary intensification of energy companies' disciplined cash and cost management in response to lower oil prices," chief executive Mark Heine said in a statement.
Fugro, which provides geotechnical, survey, subsea and geosciences services, said its cost cutting programme was progressing "well".
Last month the group withdrew its already downgraded annual guidance and said that it would cut an additional 300 jobs, on top of the 750 it had announced earlier.
Heine reiterated that Fugro would "significantly" reduce its investments next year, but added that it was too early to provide an outlook for 2026.
The developments at Fugro highlight challenges facing the offshore wind industry, which has come under pressure from U.S. President Donald Trump leaning on federal agencies to rein in policies incentivising wind power development.
The warning from Fugro also comes as major oil companies tighten spending in response to falling crude prices. On Thursday European oil majors Shell SHEL.L and TotalEnergies TTEF.PA both posted third-quarter profits negatively impacted by lower oil prices.
($1 = 0.8575 euros)
(Reuters - Reporting by Alban Kacher; Editing by Matt Scuffham)
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