Fugro Shares Surge 4.23% at Close After Months of Sharp Decline
The stock of Dutch geotechnical services specialist Fugro closed up 4.23% on Tuesday, November 25, at 8.625 euros, significantly outperforming the CAC 40 index, which gained 0.83% in the session. This rebound comes after difficult months for the group, still weighed down by economic uncertainties and a slowdown in the offshore wind sector.
Session Details
The stock showed a gain of 4.23% in the November 25 session, closing at 8.625 euros compared to 8.28 euros the previous day. However, trading volumes remained modest with 0.45% of the capital traded. This performance comes against a backdrop of significant deterioration of the stock, which has fallen 48.96% over the year, far from the 10.62% increase recorded by the CAC 40 over the same period. Over three months, the decline reaches 28.95%, illustrating the ongoing pressure on the geotechnical data specialist since the withdrawal of its financial forecasts announced last September. Fugro announced on November 20 that it had completed geophysical and archaeological studies for the 330 MW Rimini offshore wind farm in Italy. In September, the group had withdrawn its financial forecasts for 2025 due to significant market condition changes, with an estimated impact on revenue of about 100 million euros due to project delays until 2026. The management had then announced an additional reduction of 300 full-time equivalents, adding to the 750 job cuts already planned.
Technical Analysis
Technical analysis reveals a weakened stock that is largely below its reference moving averages. The price of 8.625 euros remains significantly below the 50-day moving average set at 9.00 euros and even more so below the 200-day moving average at 10.27 euros, indicating a fundamental bearish trend. The gap between the MA50 and MA200 has continuously widened in recent weeks, moving from a difference of 0.61 euro to 1.25 euro, demonstrating the acceleration of the technical degradation of the stock. The RSI at 44 is in a neutral zone, slightly below the 50 threshold, indicating no oversold condition despite the strong correction of the year. This position suggests that a more sustained bullish movement would require a lasting breakthrough beyond the 9.31 euros resistance. The identified support at 8.12 euros remains close to the current price, reflecting the fragility of the technical structure. The one-month volatility remains high at 8.32%, reflecting the persistent concerns of investors about the uncertain prospects of the group.
Operational Context
The operational context remains challenging for Fugro, with the year 2025 described as difficult by management, particularly for early-phase site characterization activities, with the fourth quarter expected to be significantly impacted by the ongoing deterioration of the offshore wind market and disciplined liquidity and cost management by energy companies in response to lower oil prices. The most significant impacts come from the oil and gas market. The group also plans to optimize its fleet by putting several geophysical vessels into hibernation during the winter season, with these additional measures set to begin taking effect at the end of 2025, with their full impact expected in 2026. In this context, the day's rebound could be more akin to a short-term technical movement than a structural trend reversal, with the group's fundamentals still subject to numerous cyclical uncertainties.
