Saturday 7 November 2015

Fugro report Q3 2015

Fugro, Q3, 2015, report, front page

Fugro my only Dutch company arrived with their Q3 report and as each report has been since I stepped in as a shareholder it has been about cuts, cuts and cuts. What has worried me since the very first report is my concern regarding them cutting away too much meat. by this I mean that they lay off employees take impairment costs and sell off vessels at a far lower value than what they should have... and for what? How much will they be forced to pay to get it all back in two years time from now?

For the report in full please go here and to see my previous summary then visit Fugro report Q2 2015 and to find out more about Fugro then please click on analysis of Fugro 2015.

Since they give out minimal information in their trading updates the only thing of use can be seen below. It was a really bad quarter and the result was down by -13%. Subsea service got especially smacked in the face with minus over 40%. Looking at the running nine months things looks at least on the paper better with revenue down by only -2% but we know that in the last report, with even a revenue increase compared to 2014, the reported a loss of a couple of millions so with this massive revenue loss for Q3 I would expect the earnings to follow the same trend.

Fugro, Q3, 2015, revenue statement

Conclusion: Fugro is still doing bad and are still cutting costs, employees and vessels. I should have sold them when they were up 30% after a few months and the management came with these suggestions which I did not like. Now I will be along for the longer ride which means until the oil price have increased substantially again so I will remain as shareholder.

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