Fugro FY 2015: strong cash flow in continuing challenging oil and gas market
EUR 314.7 million cash flow from operating activities after investments driven by improved EBIT margin, curtailed investments, lower working capital, sale of multi-client data library, and sale and lease back of a vessel.
- EBIT margin (before exceptional items) increased from 3.2% to 4.8% due to strong improvement in Seabed Geosolutions.
- Significant net debt reduction leading to net debt/EBITDA of 1.6 versus covenant requirement of below 3.0.
- Year-on-year revenue decline of 8.1% or 17.3% on a currency comparable basis in a strongly deteriorating oil and gas market.
- Cost reduction and performance improvement programme stepped up and progressing ahead of schedule.
- Backlog for the next 12 months down by 20.4% on currency comparable basis compared to a year ago, and by 3.7% compared to the previous quarter.
Outlook 2016: positive cash flow and further reduction of cost base in a challenging oil and gas market with continuing pressure on margins. ….