Earth engineering contractor Fugro has reported a pre-tax loss of £8.2m for 2022, despite a 35% rise in turnover.
The loss, included in the company’s accounts for the year to 31 December 2022, represents a drop of more than 300 per cent compared with Fugro’s pre-tax profit of £3.9m in 2021.
The company’s turnover rose from £120.8m in 2021 to £163.1m in 2022. But its cost of sales was also substantially higher, at £149.7m compared to the 96.4 million of the previous year.
Fugro, which works in industries such as energy, infrastructure and water, was the UK’s second largest land engineering contractor in Construction News’ Specialist Index 2022.
Their work includes ground investigation and cement design, environmental monitoring and laboratory analysis.
In 2022, it had an average of 679 employees, compared to 473 in the previous year.
In the strategic report accompanying the accounts, the company’s directors said the offshore oil and gas services market continued “at modest levels of recovery from previous lows” for much of 2022, while other markets such as offshore renewables “continued at the same high levels”. previously experienced”.
The report adds that because the company serves the global oil and gas sector, “revenues are directly impacted by global energy prices.” He noted: “The capital investment by the [sector’s] operators and developers continued until 2022 and [is] increasing modestly”.
But in recent years, an “increasing proportion” of the company’s revenue has come from the offshore renewable energy market.
“Investment in offshore renewables… grew rapidly through 2022 and is forecast to continue into 2023,” the strategic report states.
Fugro’s recent projects included carrying out research and analysis for the planned Keadby 3 carbon capture power station in North Lincolnshire and analyzing risks associated with trees and vegetation for Network Rail Scotland.
