Q1 2016 trading update: ongoing challenging oil and gas market continues to impact Fugro results

• Year-on-year revenue decline of 25.8% or 23.4% on a currency comparable basis, in line with oil and gas market developments.
• Negative low single digit EBIT margin in traditionally weak first quarter as a result of ongoing challenging market conditions.
• Positive cash flow from operating activities after investments (including proceeds from sale and lease back of a geotechnical vessel).
• Further reduction of net debt; net debt/EBITDA of 1.7 compared to covenant requirement of below 3.0 .
• In April, agreement reached on sale of CGG USD 90 million term loan for around USD 71 million (EUR 63 million), to be fully applied to debt reduction.
• Backlog for the next 12 months decreased by 22.3% on currency comparable basis compared to a year ago and by 8.6% compared to the previous quarter.

Outlook 2016: positive cash flow, further reduction of cost base and severe pressure on margins. ….