In the fourth quarter of 2021, revenue growth at 24.8% was particularly strong and supported by all regions, business lines and market segments. EBIT margin was 4.3% compared to 1.1% in the comparable period last year as a result of improved performance in Americas and Middle East & India, in particular in marine.
Full-year revenue increased by 5.8% on a currency comparable basis. Revenue from renewables sustained its growth trajectory with an increase of 21%. Infrastructure and water were up by 5% and 11% respectively. In the fourth quarter, oil and gas related revenue increased in all regions, whereas for the full year, revenue declined versus 2020.
EBITDA for the full year increased to EUR 175.6 million, driven by improvements in Europe-Africa and Americas, resulting in an EBIT margin of 4.3% compared to 3.5% in 2020. Results in the marine and land asset integrity business lines were higher in all regions. Throughout the year, operations were still impacted by the pandemic, in particular operational complexities of cross border projects in Asia Pacific in combination with lower government cost compensation, and low activity levels in Middle East & India. As a result, marine and specifically land site characterization margins declined.
Fugro generated a positive net result of EUR 71.1 million driven by improved EBIT, net finance expense and income tax.
Fugro’s 12-month backlog grew by 11.6% to EUR 1,014.1 million, which represents the largest increase since the end of 2018, and was supported by all business lines in all regions.
Free cash flow was EUR 39.5 million compared to EUR 38.5 million in 2020 excluding EUR 49.9 million proceeds from the sale of Global Marine Group. An increase in cash flow from operating activities by EUR 32.9 million was offset by higher working capital related to the revenue growth in the second half of year. Working capital as a percentage of 12-months rolling revenue was 10.9% at the end of 2021 compared to a particularly low level of 8.1% a year ago. Days of revenue outstanding was 82 days at the end of 2021 compared to 83 at year-end 2020. Capex amounted to EUR 79.7 million, in line with EUR 81.2 million in the previous year. Net debt was EUR 292.7 million as at 31 December 2021 compared to EUR 368.4 million at half-year 2021.
Fugro is reviewing the possibility to extend its debt maturity profile. At this stage, it is uncertain whether Fugro will proceed and, if so, when this might happen.
Mark Heine, CEO: “We delivered a clear improvement in our results. The margin was up, in particular in Europe-Africa and Americas, and we generated a positive free cash flow and a positive net result. We won numerous exciting new projects, including follow-up contracts for Denmark’s Energy Island, multiple wind farm site characterizations on the east coast of the US and several investigation works in support of the future Hong Kong-Shenzhen Innovation and Technology Park.
Considering the impact of the pandemic throughout the year, I am particularly grateful for the unwavering commitment and flexibility of Fugro’s employees to delivering high quality services to our clients. The resilient performance was a combination of strict cost management, operational delivery, and early signs of improved pricing, particularly driven by a tightening supply market and new digital Geo-data solutions. We successfully advanced our digital technology journey focused on robotics, remote, analytics and insights.
In a rapidly changing world with an increasing need for insightful Geo-data, our services are more relevant than ever. The energy transition, climate change adaptation and sustainable infrastructure are at the heart of our strategy and we are well positioned to support clients with their transformation in light of these urgent global themes. By now, we generate 61% of our revenue in wind, infra and water. The strong growth, quality and composition of our backlog underline our ambition to further diversify in these growth markets.
The positive market outlook reinforces our Path to Profitable Growth strategy. On the trajectory towards our mid-term targets, our 2022 management agenda is focused on the following topics: further implementation of our digital transformation, innovation and sustainability agenda, excellence in commercial and operational delivery; another step-change in safety and employee engagement and the roadmap to reach our net zero carbon emission ambition by 2035.”
