Fugro's profits beat estimates, but the company is still cautious about Q4

Dutch geological data specialist Fugro reported stronger-than-expected core earnings on Friday, but cautioned that worsening conditions in the offshore wind sector and tighter spending by energy firms could weigh on its performance in the final quarter.

The third-quarter adjusted earnings (EBITDA), which includes interest, taxes, amortization, and depreciation, fell by 22% on an annual basis to 108.6 millions euros ($126.7) but was still higher than the consensus estimate of 89 million dollars.

Mark Heine, chief executive of the energy company, said that the fourth quarter would be impacted by the continued decline in the offshore market and the temporary intensification in cash management and cost control by energy companies in response to the lower oil price.

Fugro, a provider of geotechnical and survey services, as well as subsea, geosciences, and surveying, has said that its cost-cutting programme is progressing "well".

Last month, the group

The company has withdrawn its previously downgraded guidance for the year.

It announced that it would eliminate an additional 300 positions, in addition to the 750 jobs it had already cut.

Heine said that Fugro will "significantly reduce" its investments in the next year. However, he added that it is too early to give an outlook for 2026.

Fugro's recent developments highlight the challenges that face the offshore wind industry.

Under pressure

Donald Trump, the U.S. president, has urged federal agencies to reduce policies that encourage wind energy development.

Fugro's warning comes at a time when major oil companies are cutting back on spending due to the falling crude price. Shell and TotalEnergies, two of the largest European oil companies, both reported earnings on Thursday.

Third-quarter profit

The lower oil price has a negative impact on the economy.

(source: Reuters)