13 September2010 – interim results

This engineering and construction group which is focused on the oil and gas sector has enjoyed a successful first six months of 2010 as shown by its interim results to 30 June.  These have revealed a 32.1% increase in revenue to US$434.3m (2009: US$328.8m), whilst pre-tax profit rose by 36.0% to US$25.2m (2009: US$18.5m).  Earnings per share were almost 35% higher at 14.95 US cents (2009: 11.09 US cents) and the interim dividend was increased to 3 US cents (2009: 2 US cents).  Strong cash flow meant that net cash and cash equivalents at 30 June was US$196.0m (Dec 31 20o9: US$179,8m).

These are clearly excellent results and the group started the second half with a strong order book of over US$1.6bn (31 Dec 2009: US$1.5bn), with particularly good growth being seen in Australasia.  The group continues to benefit from its strong record of delivery in remote locations and full year profits are likely to rise to around US$54m.  This is likely to translate into earnings per share in sterling of 20.5p.  Given the strong balance sheet and excellent long term propects the shares remain a LONG TERM BUY.