Fugro third-quarter core profit slumps on pricing pressure, Middle East costs

Oct 30 (Reuters) - Dutch geological data specialist Fugro FUGR.AS posted a sharp drop in third-quarter core profit on Friday, as weaker pricing in its marine site characterisation business and costs related to the conflict in the Middle East weighed on margins.

The company has been struggling with a prolonged slump in the offshore wind market, with project delays, cancellations and weaker demand prompting it in July to push back its expected market recovery to 2027.

Here are some details:

• Adjusted earnings before interest and taxes (EBIT) fell 58% year-on-year to €27.2 million ($30,37 million) from €64.9 million, while adjusted EBIT margin dropped to 5.2% from 12.9%

• Backlog for the next 12 months fell 8.5% to €1.35 billion, as a slump in offshore wind activity continued to weigh on orders, with offshore wind backlog down 36%

• "We indicated at the publication of our first-half year results that the second half of the year would be challenging, and our third-quarter performance reflected that outlook," CEO Mark Heine said in a statement

• Heine said that despite expecting a recovery in offshore wind market in the second half of 2027, firm awards have yet to follow

• The company maintained its full-year targets

($1 = 0.8957 euros)