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Investing.com -- Fugro N.V (AS:FUGR). on Monday said it is withdrawing its financial guidance for 2025 following significant changes in market conditions, sending its shares down more than 8%.
The Dutch company had previously projected 20% revenue growth for the second half of the year, but said that figure is no longer “realistic.”
A wide range of projects have been affected, with most postponed into 2026 and some scaled back, resulting in an estimated revenue impact of around €100 million.
Recent developments in the offshore wind sector have softened market sentiment, and the company said the most significant impacts are in the oil and gas market.
Activity levels are expected to increase, but the timing of projects is affected by intensified cost and cash management in response to lower commodity prices.
Fugro said these effects are visible in all regions, particularly in early-stage site characterization work, even on ongoing projects, and are most pronounced in the Europe-Africa region, where the company operates a large portion of its fleet.
To safeguard profitability and cash flow, Fugro said it will continue reducing costs and exercising capital discipline.
The company plans to cut an additional 300 full-time equivalents on top of 750 already announced.
It also intends to optimize fleet operations, including warm stacking several geophysical vessels during the winter season. These measures are expected to take effect in late 2025, with full impact in 2026.
Fugro said it will also significantly reduce capital expenditure for 2026, while reductions for the remainder of 2025 are limited due to already committed investments.