Full year results, which are subject to auditing, show that MIS's revenues totaled US$177.2 million, compared with US$108.8 million in 2005, representing year on year growth of 62.8%. Meanwhile net income for the company reached US$19.3 million, compared to US$9.6 million over the same period for the previous year, representing a year on year net profit growth of 101%. Revenues for the 4th quarter 2006 were $US 61.5 million, representing year on year growth of 82.8%.
Management anticipates further growth in 2007, with revenues projected at US$300 million, and net income at US$30 million, as the record opening backlog is supported in both traditional and new build activities by the continuing strong market for the company's products.
Further, the MIS Board of Directors will recommend to its shareholders for approval that MIS continues its long history of dividends by declaration of 15% of the net earnings of 2006 to be paid in 2007.
MIS provides integrated onshore and offshore engineering, procurement, fabrication, maintenance and construction services for fabrication of oil, gas and petrochemical processing equipment, marine and structural items. MIS decision to expand its business to build offshore jackup rigs in 2006 has contributed for revenue of US$20.1 million in the same year. Awards during 2006 added further orders backlog of US$341 million and after recognition of US$177 million in revenue, MIS closed the year with a new record orders backlog of US$273 million.
Commenting on the results, Mr. Charles L. Davis, Chairman of MIS, said: "The performance of MIS has been extremely strong and I am delighted to witness excellent growth in all areas of the business. This provides a good platform for the coming year in which I anticipate even better results for the company as we strive to become leaders in our industry." According to Mr. Davis the outlook for MIS in 2007 is very positive following a recent decision in early 2006 by MIS to expand in the rig building business. In October 2006 it raised an additional capital of $US 60 million, a move that will enable MIS to capitalize on the current boom in offshore oil explorations and allow it to expand its interests in the rig manufacturing business.
Expanding on the potential the growth in the industry, Mr. Jerry Smith, Managing Director of MIS said: "The current high demand for oil and gas has resulted in an unprecedented amount of offshore exploration activities and boosted worldwide offshore rig utilization to 86%, one of the highest levels ever. "Middle Eastern jack up drilling rigs are working at close to 100% utilization rates and the GCC market for jack up rigs is the fastest growing in the world. MIS, with its extensive offshore construction and fabrication experience and with yards and operations in the UAE, Saudi Arabia and Kuwait, is ideally positioned to meet the large demand for offshore rigs.
In 2006 MIS won the contract for building two jackups from Mosvold Jackups Ltd. which are under construction in the MIS yard. To date MIS has completed all milestones prior to their scheduled date, thus the progress of both rigs are ahead of schedule. MIS are also actively marketing the slots for 2009 delivery and has several interested prospects. To ensure the delivery of 3 rigs in 2009 MIS has proceeded with a firm contract with National Oilwell Varco for three drilling packages and with BLM for three jacking systems. The remainder of the long lead equipment can be supplied within the schedule after award. This makes the MIS jackup offering competitive in the marketplace. The volume of booked new build work and the prospects indicate another banner year in 2007.
We are proud of our outstanding financial results in 2006 and although MIS achieved a dramatic increase in earnings and manhours in 2006 it maintained its focus on HSE and achieved reduction of Lost Work Cases and Total Recorded Case Rate. employees. MIS considers the focus on continuing improvements in safety consciousness among all of its employees as a key driver in improving profitability for the organization.
"With the recent capital injection, our broadened shareholder base and our state of the art yard and facilities, we are confident that MIS will be able to capitalize on the opportunities presented by the fast growing oil and gas industry in the region" Mr. Smith concluded.
Established in the Middle East since 1979, MIS has achieved a strong track record in the petroleum-related construction and services industry. MIS focused on local drilling rig fabrication, repairs and maintenance, adding project management services and oilfield safety in the early 1980's to expand its customer base and scope of services. By 1990, MIS was established in the Middle East as a major onshore engineering, fabrication and services company with a reputation for high quality and on-time delivery, executed by experienced operating management. Today MIS provides integrated onshore and offshore engineering, procurement, fabrication, maintenance and construction services for fabrication of oil, gas and petrochemical processing equipment, marine and structural items.
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