Fugro Launches €50 Million Share Buyback Programme to Strengthen Capital Structure

Fugro Launches €50 Million Share Buyback Programme to Strengthen Capital Structure

(IN BRIEF) Fugro has announced a €50 million share buyback programme to optimize its capital structure by reducing share capital and offsetting dilution from recently matured convertible bonds. Enabled by strong cash flow and a disciplined capital allocation strategy, the programme balances sustainable growth investments with financial flexibility and a dividend payout of 25-45%. Set to run until mid-January 2025, it will comply with safe harbor provisions and EU regulations. Fugro is also exploring refinancing its €400 million term loan and revolving facilities agreement to secure better terms and extended maturities, reflecting its improved credit profile.

(PRESS RELEASE) LEIDSCHENDAM, 18-Nov-2024 — /EuropaWire/ — Fugro has unveiled plans to initiate a €50 million open market share buyback programme, marking a strategic step in optimizing its capital structure. Shares repurchased through this programme will subsequently be cancelled, effectively reducing the company’s share capital while offsetting dilution resulting from recently matured convertible bonds.

This initiative reflects Fugro’s robust cash flow generation and its disciplined approach to capital allocation. The company remains committed to balancing financial flexibility for sustainable growth investments with the preservation of a solid balance sheet and a dividend payout ratio within the 25-45% range.

The programme kicks off today and is scheduled to conclude by mid-January 2025, barring an earlier completion if the total amount is reached sooner. Progress will be disclosed weekly on Fugro’s website, adhering to regulatory requirements.

A third party will oversee the execution of the programme under an engagement letter, ensuring adherence to safe harbor provisions governing share repurchases. Transactions may occur during closed periods, with all activities complying with relevant rules, including the Market Abuse Regulation 596/2014 and Commission Delegated Regulation (EU) 2016/1052. The authority for the buyback was granted during Fugro’s annual general meeting on 25 April 2024, valid until 25 October 2025.

In parallel, Fugro is evaluating opportunities to refinance its existing €400 million term loan and revolving facilities agreement. By leveraging its improved credit profile, the company aims to secure more favorable terms and extend maturities. Updates on the refinancing progress will be provided as developments occur.

This press release was written by the author to share Fugro’s latest initiatives, showcasing the company’s dedication to sustainable financial growth and long-term value creation.

About Fugro
Fugro is the world’s leading Geo-data specialist. With our unique map, model and monitor solutions, we provide project critical insights into the built and natural environment. Fugro supports clients by delivering solutions in support of the energy transition, large-scale infrastructure development and climate resilience. With expertise in site characterisation and asset integrity, clients are supported in the safe, sustainable and efficient design, construction and operation of their assets throughout the full life cycle. In line with our purpose, we are extending our know-how and solutions to the understanding and preservation of ecosystems.

Employing close to 11000 talented people in 55 countries, Fugro serves clients around the globe, mostly in the energy, infrastructure and water industries, both offshore and onshore. In 2023, revenue amounted to EUR 2.2 billion. Fugro is listed on Euronext Amsterdam.

This release contains information that qualifies, or may qualify as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation

This announcement may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro’s beliefs, expectations, intentions, forecasts, estimates or predictions (and the assumptions underlying them). Forward-looking statements necessarily involve risks and uncertainties. The actual future results and situations may therefore differ materially from those expressed or implied in any forward-looking statements. Such differences may be caused by various factors (including, but not limited to, developments in the oil & gas industry and related markets, currency risks and unexpected operational setbacks). Any forward-looking statements contained in this announcement are based on information currently available to Fugro’s management. Fugro assumes no obligation to in each case make a public announcement if there are changes in that information or if there are otherwise changes or developments in respect of the forward-looking statements in this
announcement.

Media Contact:

Media Relation:
Serge van de Ven
s.vandeven@fugro.com
+31 70 31 11129
+31 6 3094 2428

Investors Relation:
Catrien van Buttingha Wichers
c.vanbuttingha@fugro.com
+31 70 31 15335
+31 6 1095 4159

SOURCE: Fugro N.V.