Fugro 'in the sweetspot' with new offshore wind contract, shares rise
16/11/2022 08:38
** Shares in Fugro FUGR.AS rise 4% after the Dutch
deep-sea energy prospector won a major offshore wind contract
with Energinet to support Denmark's renewable energy goals
** The group will conduct geotechnical site investigations
for the North Sea I offshore wind development as Denmark plans
to expand offshore wind capacity by 4 GW by 2030
** ING says this is an interesting project for Fugro's
renewables unit that confirms "management's remark earlier that
clients are claiming capacity much earlier than in the past"
** "These projects far out can be better planned than short
term work," the brokerage adds, as Fugro said fieldwork was set
to start in 2024 and continue well into 2025
** "Overall, our view is confirmed that Fugro is in the
sweetspot to benefit from the high demand for solutions to
respond to the climate change," ING says
** KBC Securities also welcomes the news, as it locks in
significant utilisation for 2024 and 2025 while offshore wind
removes some typical cyclicality Fugro experiences in O&G
** "Rare event for Fugro to report on a contract win before
market opening, indicating its significant importance (no
financial details are disclosed)," the brokerage adds
** The stock is up around 110% YTD
(Reporting by Juliette Portala)
((juliette.portala@tr.com))