Fugro confident of achieving 2024 revenue growth target as wind and LNG markets stabilise
01/11/2024 16:11
By Anna Peverieri and Alban Kacher
Nov 1 (Reuters) - Dutch geological data specialist Fugro
FUGR.AS is confident of meeting its full-year target of mid
single-digit revenue growth as it expects wind energy and LNG
markets to stabilise after next week's U.S. election, the
company's CEO said.
Shares in Fugro fell as much as 21.3% on Friday after the
company reported a 21% fall in revenue in the Americas region
due to postponement of offshore wind, carbon capture & storage,
and liquefied natural gas projects in the United States.
The company provides geological data to those sectors. Its
revenue in the Middle East also dropped 21%.
CEO Mark Heine told Reuters that he expects multiple
projects, especially in South America, that had been put on hold
due to political uncertainties to resume after the U.S.
presidential election on Nov. 5, citing ongoing discussions for
a yet undisclosed "large LNG project" in Mexico and Guyana.
He also sees an increase in orders in the near term,
following a ruling in July against the Biden administration's
pause in approval of applications to export LNG, with an
expected 25% comparable backlog growth over the next 12 months.
"Activity levels are already picking up again and we do
believe that after the elections this will further stabilize,"
Fugro's CEO said, adding that the recovery does not strongly
depend on the next U.S. president.
Fugro is also facing delays in the commissioning of some
offshore wind projects in the United States, due to the
renegotiation of contracts pricing and supply chain issues with
a blade manufacturer.
(Reporting by Anna Peverini and Alban Kacher)
((alban.kacher@thomsonreuters.com))