Archived News › Wellstream Holdings PLC ('Wellstream') Interim Management Statement
17th November 2009
Wellstream, the oil field services provider, issues the following Interim Management Statement for the period 1 July to 17 November 2009.
Trading continues to be in line with the Board's expectations with earnings for the second half of the year anticipated to be slightly ahead of the first half of 2009 as previously indicated.
Strategically, the company continues to make progress. It has acquired the lease on the land adjacent to its Niteroi production plant in Brazil which allows realisation of operational efficiencies, scope to offer key customers logistics support and space to expand production capacity further as demand requires. Also, effective 1 October 2009, the company successfully completed the divestment of its onshore FlexSteelTM business to Prime Natural Resources Inc. for a total cash consideration of approximately USD $30 million.
Key contract awards in Brazil under the framework agreement with Petrobras, along with background activity elsewhere, have contributed to backlog which currently stands at £170M. However, whilst awards are evident, uncertainty remains around timing of awards outside of Brazil. The Company anticipates this uncertainty will continue through the first half of 2010 and is likely to impact earnings in that period. Consequently we remain focussed on improving cost efficiency in the business by expanding the local content in our plants and by maintaining the appropriate balance between resources and anticipated demand.
For further information, contact:
Wellstream Holdings PLC +44 (0) 191 295 9000
Chris Gill, Finance Director
Jason Nunn, Investor Relations
Tulchan Communications +44 (0) 20 7353 4200
Peter Hewer
Notes to Editors:
Wellstream refers to Wellstream Holdings PLC (FTSE:WSM) and its subsidiary Wellstream International Ltd. The company is a leading independent designer and manufacturer of high quality bespoke flexible pipeline products, systems and solutions for fluid transportation. Its pipeline portfolio includes established product lines such as dynamic flexible risers and static flowlines, for deep and ultra-deepwater environments. With over 1000 employees, Wellstream has offices/facilities in the UK, Brazil, USA, and Australia. Further information regarding Wellstream and its products and services can be accessed at www.wellstream.com.