Velosi Sees 13% Profitability Increase in '09
Velosi announced its preliminary unaudited results for the year ended December 31, 2009.
HIGHLIGHTS IN 2009
Strong Financial Performance
- Revenue was steady at US $183.6 million (2008: US $182.1 million).
- Operating profit up 2.7% to US $14.8 million (2008: US $14.4 million)
- Profit on ordinary activities before tax up 13.0% to US $16.8 million (2008: US $14.9 million)
- Profit after tax and non-controlling interests was US $10.4 million (2008: US $9.3 million)
- EPS up 5.1% to 22.8 cents per share (2008: 21.7 cents per share)
- Cash flow generated from operations of US $10.7 million (2008: US $13.2 million)
- Net cash reserves of US $19.7 million maintaining a strong financial position
- Final dividend proposed of 1.5 cents per share (2008: 1.0 cent per share)
- Strong forward order book providing excellent visibility on future revenues
- Controlled investment in the Group's global infrastructure
- Opened new offices in Papua New Guinea, Pakistan, Brazil, Thailand and China
John Hogan, Chairman, commented, "To report a 13.0% increase in profitability, during a year when market conditions have been extremely challenging, is a very creditable performance. Reported revenue for the Group was stable in 2009 when compared to last year. However, excluding Nigeria which had to operate under exceptional circumstances, revenues actually increased by approximately 6.8%. This was achieved in a year in which oil prices dropped to around US $40 per barrel, resulting in many oil and gas companies reducing their expenditure.
"Looking ahead, we are seeing signs of recovery in activity alongside a higher and more stable oil price, with specific regions and countries experiencing an increase in investment in oil and gas infrastructure projects, although the overall mood in the industry remains cautious. VELOSI has a strong order book which provides good visibility on future income and while we do not anticipate significantly improved market conditions, we expect to deliver a positive performance in 2010."
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