Sunday, 13 March 2016

Fugro annual report 2015

Fugro, annual, 2015, front page

The annual report from Fugro was pretty well accepted by the market... much better than what I accepted it which of course is biased due to that I am upset with myself for not selling it at the good moment. What was then in it?

For the report in full please go here and to see my previous summary then visit Fugro report Q3 2015 and to find out more about Fugro then please click on analysis of Fugro 2015 (a new one will arrive shortly).

Looking at the financial statement below then things are not peachy and yet there was a bit of an up beat sound to it. In the last two years they have now taken impairment costs of 1.4 billion € (800 M € in 2014 and 600 M € in 2015) which is a lot especially considering having assets of around 2.8 billion € (intangibles 466 M €) left. They also claim to have secured credit for the next five years. I hope they will not need to use that.

The revenue has remained surprisingly high to me with 2.3 billion € which is only -10% compared to in 2014. Their backlog is down by an additional -20% which is bad news but I also understand that the oil and gas companies will do everything to not bind themselves to any long-term contracts. Due to impairment costs, restructuring etc we ended up with a -372 million € loss for the full year which converts to -4.60 € per share.

Fugro, 2015, financial statement

Conclusion: Fugro is not yet out of the woods and from my experience in the last couple of years these kind of things take a long, long time. I will keep beating myself on that I did not sell them when the opportunity was presented to me. I will remain as a grumpy shareholder.

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