Fugro's 'growth path has returned', shares rise

Fugro NV

29/07/2021 09:15

** Shares in Fugro  FUGR.AS  rise 3.9%, paring earlier gains
of as much as 6%, after the Dutch deep-sea energy prospector
reported return to growth in Q2 and improved margins
 urn:newsml:reuters.com:*:nFWN2P41QO
    ** Fugro reported 14.1% increase in Q2 revenue to EUR 389.5
million  ($462.22 million), the first increase since the start
of the pandemic
    ** KBC Securities points out the increase in Q2 revenues is
supporting a margin improvement that slightly outperforms
consensus estimates 
    ** It adds that both revenue and margins surprised
positively and believes "there is a reason to assume the green
shoots of improving margins to continue growing in the coming
years, especially in 2022"
    ** ING says that after 14% revenue growth in Q2, it looks
like "the growth path has returned," foreseeing it will continue
    ** "Our 'buy' stands with a PT of 10.7 euros, seeing low
multiples for Fugro which will become higher when markets
realize that Fugro is more engineering than only an oil and gas
player, and the company starts to deliver on margins and cash
flow", the brokerage adds 
    
($1 = 0.8427 euros)

 (Reporting by Marianna Ciabach-Malinowska)
 ((Marianna.ciabach@thosmonreuters.com))