sjapy vien schreef:
• Fugro reported very strong, and better than expected, FY 2007 earnings.
Sales growth was 25.7%, with organic sales growth at 22.9%. Overall
sales growth was stronger than in 2006 (+23.5% or 18.9% organically).
Growth was strong across all divisions, led by Geoscience Development
and Production at almost 51.5%.
• The company’s order book grew by 27.2% from the beginning of 2007 to
Eur 1.458 bn, equal to 80.9% of 2007 sales (beg. of 2006: 79.9% of 2006
sales). Again Geoscience D&P was in the lead with growth of 54%. The
order portfolio remains well-balanced between Geotechnical (20.2%),
Survey (44.4%) and Geoscience (35.3%).
• The strong growth went hand in hand with solid margin improvement. The
overall EBIT-margin rose by 3.2%-point to 18.0%, indicating high
utilization rates and solid pricing power. Key driver for business results is
still the high activity levels in the oil and gas segment. Continued higher
E&P spending leads to strong demand for Fugro’s services.
• The company is well positioned for further growth in its main segments.
Thanks to capacity expansion. Fugro had no significant operational
problems in its fleet and has outperformed its peers in seismic on
execution.
• Fugro’s 2007 results were very strong with high revenue growth
accompanied by a high degree of operational leverage. Fleet
expansion, targeted acquisitions and improving utilization and day
rates will continue to drive earnings growth for this well diversified
and well-managed geotechnical company. The price target is raised
to Eur 65 (from Eur 57). The recommendation remains Buy.