Dutch geological data company Fugro has resumed several US hydrocarbon and liquefied natural gas (LNG) projects following Donald Trump’s election.
Fugro CEO Mark Heine noted that the US Government issued licenses previously on hold under Joe Biden’s administration, reported Reuters.
The company is also optimistic about offshore wind development in Asia and Europe. Fugro’s offshore wind projects in the Americas account for 7% of its turnover.
However, US renewables projects lacking permits or power purchase agreements face uncertainty, with operators potentially shifting focus to Europe.
“It comes at the right time because operators will move their investment capacity to Europe and it will boost the renewable energy in Europe,” Heine said.
In January, Trump ordered a pause on new federal offshore wind leasing, focusing on maximising US oil and gas production.
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By GlobalDataFugro anticipates that the EU Clean Industrial Deal will enhance offshore wind development, aiding the EU’s transition to cleaner fuels.
Fugro reported adjusted earnings before interest and taxes (EBIT) of €71.8m ($74.69m) in the fourth quarter (Q4), surpassing the company-compiled consensus of €54m.
Despite this, the group’s Q4 revenue fell slightly short of analysts’ expectations due to US political uncertainties.
Heine said: “Our financial performance in 2024 was good, as we delivered well against the mid-term targets of our strategy Towards Full Potential. We significantly improved our EBIT margin, as well as our operating cash flow. In three out of four regions, we realised double-digit EBIT margins, driven by both our Marine and Land activities. We are also pleased to be able to raise our dividend to €0.75 per share, combined with a return on capital employed of 18.1%, above our mid-term target.
“The strong improvement in EBIT and cash flow was delivered in a year in which our top-line growth was impacted by developments in our Americas and Middle East markets. Although overall lower than anticipated, Fugro generated revenue growth driven by the Europe-Africa and Asia-Pacific regions.”
Further setbacks are expected in the first half of the year.
In the Americas, which contribute 22% of Fugro’s revenue, sales decreased by 11.5% organically in Q4 to €137.8m, primarily affecting the geophysical business line.
