A poor set of results for the first half of 2017 will see Fugro implement additional measures to streamline business processes and further reduce costs.
Fugro posted a loss of €96.4m ($114.2m) for the half as year-on-year revenues declined 14.5%. The company said the result reflects ongoing underinvestment due to a slower than anticipated bottoming out in the offshore oil and gas market.
In the first half of 2017, Fugro had continued a drive to slash costs and already reduced its headcount by 178 to 10,352 employees and cut third party expenses by 9.6%.
Further measures are now being taken including further reductions in full time employees, the down-manning of vessels, and more flexible staffing.
Fugro also said it will look to reduce costs by negotiating improved terms and conditions and early termination of vessel charters, and by retiring two older vessels.
Paul van Riel, CEO of Fugro, commented: “The offshore oil and gas market continued to decline resulting in a tough first half of 2017. Marine site characterisation activities performed below last year mainly due to pricing pressure, and currently utilisation at Seabed Geosolutions is low. The marine asset integrity business showed an improved performance at close to break-even level.”
“In order to restore profitability we are implementing additional measures, including significant cost savings, adjusting pricing strategies and focusing on innovative, higher margin services. This will already start to contribute to improved performance in the second half of this year.”