22nd Sep 2015 08:22
LONDON (Alliance News) - KBC Advanced Technologies PLC Tuesday said it anticipates it will meet its expectations for its full year, as it reported a fall in pretax profit for its first half in what it called "difficult oil market conditions."
KBC provides consultancy services and software for the hydrocarbon industry.
For the half year to end-June the company reported a pretax profit of GBP1.6 million, down from GBP2.9 million a year before, as revenue rose to GBP36.2 million from GBP34.4 million, but this was offset by higher amortisation, redundancy and reorganisation costs.
The company highlighted difficult conditions in the oil market, which led to major project cutbacks. However, it said it had reshaped and repositioned its business to respond to these conditions, cutting its cost base through measures including consolidating its North American offices and cutting staff in more mature regions. It expects the full benefit of its restructuring to be realised during the remainder of the year.
KBC said its second half has started well, with a number of contracts secured in its Consulting business, which is helping buffer it against the hydrocarbon downturn.
"Recent contract wins in the Middle East and Russia improve medium-term visibility of Consulting revenue and therefore we expect full year results to be in line with the board's expectations," said Chairman Ian Godden in a statement.
Shares in KBC were up 0.9% at 110.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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