Fugro Shares Fall Most in More Than Two Weeks on Profit Outlook

By Fred Pals

Aug. 8 (Bloomberg) -- Fugro NV, the world's largest surveyor of deepwater oil fields, fell the most in over two weeks in Amsterdam trading after its 2008 profit outlook wasn't as strong as expected, analysts said.

Fugro shares fell as much as 1.48 euros, or 3 percent, to 47.62 euros, the steepest decline since July 24. The shares traded at 47.99 euros at 9:11 a.m. local time, valuing the company at 2.37 billion euros ($3.6 billion). Fugro will be included in the benchmark Amsterdam Exchanges Index after the market closes on Sept. 1.

The Leidschendam, Netherlands-based company expects full- year net to rise to about 270 million euros from 216 million euros in 2007, with sales growing to more than 2.1 billion euros from 1.8 billion euros, it said in an earnings statement today. The company said first-half profit increased 27 percent as crude producers increased spending on exploration.

``The outlook is rosy, but appears conservative,'' Danny van Doesburg, an Amsterdam-based analyst at SNS Securities, said in a note to investors today. ``There is a high likelihood of an upward revision at the trading update in the third quarter,'' said Van Doesburg, who has a ``buy'' rating.

Oil producers have taken advantage of record crude prices to boost investment in exploration, searching for deposits in increasingly remote areas as existing fields mature. Companies such as Royal Dutch Shell Plc, Exxon Mobil Corp. and Petroleo Brasileiro SA need specialized seismic data to find fuel in deeper waters with more complicated geological reservoirs.

`Good Results'

Net income rose to 109.3 million euros ($166 million) from 85.9 million euros a year earlier, it said in the statement. That's in line with the 109 million-euro median estimate of seven analysts surveyed by Bloomberg News. Sales advanced 20 percent to 993 million euros.

``Fugro continues to show good results,'' Andre Mulder, an Amsterdam-based analyst at Landsbanki Kepler, said by phone today. ``The outlook is as always a bit conservative,'' said Mulder, who has a ``buy'' rating on the stock.

Fugro will spend about 400 million euros this year, adding five vessels to its fleet in the second half of the year. The company expects spending from oil companies to increase by around 20 percent this year, up from an earlier 12 percent to 16 percent forecast, citing an external report.

``The high demand for our mainly specialist services continued and is expected to continue in the coming period,'' the company said in the statement.

To contact the reporter on this story: Fred Pals in Amsterdam at fpals@bloomberg.net