By Alessandro Parodi
(Reuters) -Dutch geological data specialist Fugro scrapped its already downgraded annual outlook on Monday and announced further job cuts, citing an impact from project delays.
Shares in the company fell as much as 13% before regaining some ground. They were down 8% at 0800 GMT, their lowest level since March 2022.
Fugro said that projects in the offshore wind and oil and gas markets were getting delayed into 2026 and their scope cut back, resulting in an estimated 100 million euro ($117.5 million) impact on its revenue.
The move highlights challenges facing the offshore wind industry, which has came under pressure from U.S. President Donald Trump leaning on federal agencies to rein in policies incentivising wind power development.
“The previously anticipated 20% revenue growth is no longer realistic,” Fugro said.
CAPITAL EXPENDITURE CUT
Fugro had already lowered its full-year margin for earnings before interest and taxes (EBIT) guidance last month to 8%-11% from 11%-15% earlier, citing industry-wide project delays and scope reductions in the offshore wind market.
On Monday it said that clients had also reduced their capital and operating spending in oil and gas projects due to stalling prices of the commodities.
“We now feel it immediately in our site characterization work in the short term, if they postpone things or if they say, we delay this survey, the start of this project,” CEO Mark Heine told analysts. “Fugro is very much in the forefront.”
Fugro added it would “significantly” cut its capital expenditure for 2026.
Brokerage KBC securities cut the company’s rating to “hold” from “accumulate” following the guidance withdrawal, and said it was clear that the diversification between the company’s renewable and traditional energy market was “not paying off”.
Fugro, which provides geotechnical, survey, subsea and geosciences services, said it would cut an additional 300 jobs, on top of the 750 it had announced earlier. The total figure is equivalent to about 9% of its total workforce at the end of 2024.
($1 = 0.8514 euros)
(Reporting by Alessandro Parodi, Editing by Louise Heavens and Matt Scuffham)
