4th Nov 2014 09:03
LONDON (Alliance News) - Oil services company Getech Group PLC Tuesday said it has won a three-year extension to a contract with an unnamed national oil company, as it reported a drop in pretax profit and revenue for the full year but hiked its dividend on optimism for the coming year.
Getech did not provide any financial details on the new contract from the national oil company, but said it would allow the client to buy globe, regional reports, data and commissions work from the business.
The company said its pretax profit in the year to July 31 dropped slightly to GBP1.57 million, from GBP1.6 million the year before, with revenue falling 18% to GBP6.6 million from GBP8 million.
The group has proposed a final dividend of 1.76 pence, up 10% on the 1.6 pence paid a year earlier, with its full-year dividend totalling 2.20 pence per share, up from 2.00 pence in 2013.
Getech said the financial year had been challenging due to lower capital expenditure in the upstream oil sector, primarily due to the uncertain economic outlook and the subsequent pressure on oil prices.
The company said the majority of the challenges were seen in the first nine months of its financial year and said the fourth quarter showed an improvement.
Chairman Stuart Paton said that in spite of a likely drop in exploration spend by oil companies in the coming year due to the lower oil price, increasing interest from national oil companies and a continued strong performance in the US provides some optimism for the business going forward.
Getech shares were down 1.6% at 50.69 pence early Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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