In the first quarter of 2024, Fugro witnessed a remarkable surge in revenue, buoyed primarily by the stellar performance of its marine business, particularly in the realm of offshore wind ventures. The company reported a noteworthy growth trajectory, with earnings before interest and tax (EBIT) margin touching nearly 9%.
The marine business witnessed a remarkable uptick, with revenue soaring by 13.8%, attributed to the strategic expansion of the geotechnical fleet. Fugro's strategic positioning in the burgeoning offshore wind sector played a pivotal role in this growth spurt, as ongoing significant investments in offshore wind projects translated into a robust 9% overall revenue escalation for the entire group in Q1.
Mark Heine, CEO of Fugro, expressed optimism regarding the company's performance, stating, “The year 2024 is off to a good start. We are capturing a significant part of site characterizations in the offshore wind market, which continues to be buoyant as a result of the energy transition in numerous countries.”
He further elaborated on the factors driving the impressive EBIT margin of 8.8%, despite the challenges posed by the typically slow first quarter. “In this typically low winter season, we reported a strongly improved EBIT margin of 8.8% driven by an overall robust performance in marine, fueled by excellent operational execution, operating leverage, and improved terms and conditions; despite still increasing cost levels.”
Notable projects contributing to Fugro's success include geotechnical survey work for Dogger Bank South for RWE and Masdar off the north-east coast of England, along with a geophysical unexploded ordnance identification and clearance project for TenneT on its 2GW offshore grid connection projects off Germany.
While vessel utilization slightly dipped to 65% compared to 68% in the corresponding period last year, due to scheduled maintenance and lower utilization of the geophysical fleet, the overall performance remains robust.
Fugro's strong foothold in the marine domain, particularly in the realm of offshore wind ventures, underscores its commitment to navigating the evolving landscape of renewable energy and capitalizing on burgeoning opportunities therein.
