Bloomberg News

Fugro Falls Most in Three Months on Resignation: Amsterdam Mover

February 11, 2013

Fugro NV dropped the most in almost three months in Amsterdam after supervisory board Vice Chairman Frans Cremers quit the biggest deepwater-oilfield surveyor.

Fugro plunged as much as 9.7 percent, the steepest intraday decline since Nov. 19. Cremers left because of “the pace with which changes within the financial organisation of Fugro are implemented and that decisions of the supervisory board in respect thereof are not adequately carried through,” it said.

The decision by Cremers, who headed the audit committee and whose term was due to end in 2014, follows management board Chairman Arnold Steenbakker’s resignation in November over a “difference of opinion” on the company’s future. Cremers’ action isn’t related to financial figures, either reported or yet to be published, Leidschendam, Netherlands-based Fugro said.

After “recent management board upheaval, the dust still hasn’t settled with the exit of this highly regarded supervisory board member,” Andre Mulder, a Kepler Capital Markets analyst who recommends buying Fugro, said in a note to investors.

The company fell 7.3 percent to 39.025 euros by 10:31 a.m. in Amsterdam, valuing it at 3.23 billion euros ($4.3 billion).

Fugro, which agreed to sell its seismic unit for 1.2 billion euros in September, is conducting a strategic review and expects to make further announcements in the second half.

Profit after tax is seen falling to about 280 million euros for 2012 from 288 million euros, with weak fleet utilization in the fourth quarter, Fugro said Nov. 19. The company had earlier estimated earnings of at least 310 million euros.

To contact the reporter on this story: Martijn van der Starre in Amsterdam at vanderstarre@bloomberg.net

To contact the editor responsible for this story: Mariajose Vera at mvera1@bloomberg.net


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