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Offshore Hydro revenue halves
Tue, 07 Feb, 2012
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Offshore Hydro revenue halves
Tue, 2 Mar 2010, 14:01:00
Interim revenue at hard-up oil services company <b>Offshore Hydrocarbon Mapping</b> has halved and the loss before tax could be over £4m. Revenue was temporarily held back in the six months to 28 February by delays in receiving data from clients on contracts, causing a drop to £3.2m from £6.2m a year ago. The group also lost between £4.1m and £4.4m before one-off charges, down from £5.6m last time. The EBITDA loss will be £2.8-£3.1m versus a £4.6m deficit in 2009. Offshore is also "examining options" for attracting funds into the business to get it through to cash flow breakeven. In December, two of the firm's largest shareholders agreed to provide it with a credit facility of up to $2m. But it does expect to have a "much stronger" second half than in the last financial year when total revenue fell back to £3m in the six months to 31 August 2009. Cost-cutting continues, with overheads before foreign currency differences slashed to an average of £410,000 per month from £630,000 in the first half of 2009. "OHM reduced risk substantially last year through renegotiating its fixed charter liabilities, but with the outlook for profit uncertain and a further need for funding substantial risk still remains," said broker KBC Peel Hunt. It maintains its 'buy' rating and 33p target price though as at least the order book is improving. Half-year results are due on 22 April.
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