Fugro Declines After First-Half Profit Misses Estimates
Fugro NV (FUR), the world’s largest surveyor of deepwater oil fields, slumped as much as 9.1 percent in Amsterdam trading after earnings missed analysts’ estimates because of the slowing world economy and price pressures.
Fugro fell as much as 3.76 euros and traded at 38.51 euros at 11:15 a.m. local time. The stock is down 37 percent so far this year.
First-half earnings before tax and interest of 141 million euros ($200 million) missed the average estimate of 160 million euros in a Bloomberg survey of five analysts. Fugro forecast full-year net income of about 260 million euros on sales of about 2.5 billion euros.
“Both the actual first-half results as well as the guidance for the full year as a whole are disappointing,” Martijn den Drijver, an analyst at SNS Securities in Amsterdam, said today in a note. SNS has a “buy” rating on the stock and expects to revise down its estimates.
The uncertain global economic outlook may lead to projects being deferred and clients awarding projects at the last minute, Leidschendam-based Fugro said in a statement. The company gathers information about possible petroleum reservoirs under the sea floor in areas such as the Gulf of Mexico, the North Sea and Brazil.
“ In some market segments we expect to experience continued price pressure,” the company said in the statement. The European debt crisis and political unrest in the Middle East and Africa “created uncertainties in various market segments in which Fugro is exposed,” it said.
To contact the editor responsible for this story: Will Kennedy at firstname.lastname@example.org