18th Mar 2015 09:47
LONDON (Alliance News) - Thalassa Holdings Ltd Wednesday said it is reviewing the carrying value of its assets in light of the recent oil price decline, but said it's confident of meeting profit and revenue expectations for 2015 as it continues to receive a good level of order enquiries.
The oil services company said it has made its first two data sales in 2015, generating USD1.6 million gross or USD1.4 million net of agent commission. The sales are related to the 23rd Norwegian licence round first announced on March 5, 2014.
It also said it is continuing to benefit from a strong cash position of USD16.4 million, of which USD2.2 million is restricted.
"Whilst the overall trading environment remains extremely challenging, the board is confident that the company is well positioned to benefit from a recovery in industry activity. The board anticipates that, based on its current book of contracted business, Thalassa will break even in the year ending 31 December 2015 and that, following conversion of some of the opportunities referred to above into contracted orders, would meet current market expectations of pretax profit of USD1 million on revenue of USD18 million," it said.
However, it doesn't expect to put out its 2014 results until early June as it carries out the "comprehensive and cautious" review of the carrying value of its assets. It didn't give any guidance about the results.
When it reported its interim results last September, it had reported a drop in net profit and revenue after it completed a one-off manufacturing contract with Statoil, but also said its pipeline of order enquiries had risen 23% over the six months to USD175 million, with several of the tenders expected to impact its second-half results. It said the outcome for the year as a whole was heavily dependent on order pipeline conversion, the scale of data sales, and any deployment with Russia's Sevmorgeo which it said was looking unlikely due to sanctions imposed on the country.
Thalassa Holdings shares were down 1.4% at 43.40 pence in London Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Thalassa (di)