Abbot Group Sees Increase in 1H07 Operating Results
Abbot Group reports that the company's total operating profits increased 77.2%, an increase from $35.6 million in 2006 to $63.2 million for 2007 half year results. Operating profits from drilling grew 85.9% to $69.8 million and operating profits from engineering grew 14.3% to $11.2 million. Total operating profits were $51.4 million. Before taxation profits grew 30.3%, an increase from $24.1 million in 2006 to $35.8 million in 2007. Turnover was up 56.6% to $686.2 million (2006: $438.2 million), while EBITDA grew 54.9% to $97.2 million (2006: $62.7 million).
Adjusted earnings per share grew 7.1% from basic earnings per share of 5.5 cents to 10.6 cents. Interim dividend increased 8.1% to 2.00 pence per share. Forward revenue visibility remains high with contract pipeline at $2.5 billion, an excess of $850 million signed year to date.
Utilization levels for the land rig fleet were reported well above 90%. Day rates have increased by some 14% compared to the first half of 2006.
The high level of demand for drilling and engineering services in Europe, the Middle East, West and North Africa, Russia and the Caspian Sea have contributed to the increases in day rates. *The above figures are in respect of continuing activities and exclude intangible asset amortization on customer relationships.
Alasdair Locke, Executive Chairman of Abbot, commented:
"There are a range of attractive investment opportunities for the Group in all our core growth marketplaces and, accordingly, we expect to continue to expand our product and service offerings in the coming years against the security of long term contracts with our established client base. The fundamentals of our marketplace remain strong and we have now established a sustainable and profitable competitive position on a worldwide basis, with further upside potential."
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