Mark Heine, CEO: "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. The positive impacts of the ongoing implementation of cost reductions during the last quarters were offset by lower pricing arising from industry overcapacity in marine site characterisation. Profitability was further affected by additional costs related to the continued war in the Middle East and one-off charter costs incurred to execute two offshore inspection and monitoring campaigns in Australia.
Our priority is clear: to improve profitability and strengthen cash flow. We have taken substantial action over the past years to reduce our cost base, and the current EUR 50 million annualised cost reduction programme is progressing as planned. We are building on these actions by intensifying our focus on structural performance improvement. This involves fundamental changes to how we organise and operate the business, which will take time to fully implement. We are approaching these actions with urgency and a strong focus on delivery.
Offshore wind -alongside other renewable and traditional energy sources- is a vital component of an affordable, secure and diversified energy system. Its strategic importance was reaffirmed at the North Sea Summit earlier this year, with firm commitments to de-risk new developments. The recent successful auction round in Denmark and healthy tendering activity in Europe underpin our expectation that the offshore wind site characterisation market will start to recover from the second half of 2027 onwards. However, firm awards have yet to follow, and our backlog in this market remains below last year's level.
The medium- to long-term outlook across Fugro's core markets remains sound. Our longer-term strength will come from maintaining our technological leadership and scaling solutions with strong commercial potential, such as GroundIQ."