Neptune Delivers Strong Quarterly Performance, Grows Revenue 15%

Leading engineering services company, Neptune Marine Services, has taken advantage of its strategic position within the global oil and gas industry to deliver second quarter revenues of $52 million.

The encouraging quarterly revenue growth represents a 15% increase on the previous quarter (231% increase year-on-year) and takes revenue for the six months to December 31, 2008 to $97 million.

Managing Director and CEO of Neptune Marine, Christian Lange, said the result reflected a strong contribution from all divisions and confirmed ongoing demand for its niche capabilities.

"Neptune continues to perform exceptionally well as a large percentage of our revenue is derived from investment in existing infrastructure," he explained.

"While, ultimately, our business is reliant on global oil & gas economics, we are not presently experiencing a significant material impact due to the nature of our business relative to where we are in the field development cycle.

"In the current climate, investment in Brownfield (existing) operations is less impacted than in exploration and Greenfield (new) development activities as operators seek to consolidate and maximise the value from their existing assets. Further, our long held view is that oil supply/demand fundamentals will win through as decline in existing fields challenges future supplies."

Neptune's recently acquired support vessels, the MRV ROV Supporter and MV Neptune Trident, were major contributors to the revenue, as was the NEPSYS® division which secured international projects in the UK and USA.

"We are pleased with our revenue performance for the first six months that has us well placed to achieve our forecast. We will continue to take advantage of the high levels of tendering activity that is occurring in the oil and gas services market and will actively pursue new opportunities across our international target markets," Lange said.

"Cashflow during the period was also pleasing and demonstrates our ongoing ability to generate the cash required to fund our current operations and future growth."

The announcement earlier this month of the acquisition of Aberdeen's Subsea Engineering Services (SES) is expected to further strengthen Neptune's international presence and provide the group with advanced technical capabilities in the design of specialist subsea equipment; another addition to its comprehensive suite of integrated engineering solutions and services.

"SES is an excellent business with leading edge expertise, a well established client base and respected reputation in the industry. The addition of SES to the Neptune group of companies is another positive step forward in the implementation of our Strategy for Growth that will establish Neptune Marine as a leading international oilfield services provider," Lange suggested.

Neptune Marine Services will release its HY09 results during February.