- Ashtead Technology revenue soars
- Full-year results seen ‘comfortably’ above forecasts
- Wood Group inks $330 million deal
Ashtead Technology (AT.:AIM), the offshore energy services firm spun out of construction equipment hire group Ashtead (AHT) in late 2021, seems to be following in the tracks of its parent company with its latest trading update.
After a 57% jump in first-half revenue, the firm now expects its interim and full-year results to be ‘comfortably ahead of previous expectations’.
Investors responded positively, sending the shares close to a new high up 4.6% to 410p and taking its market value to over £300 million.
POSITIVE MOMENTUM
The Sandy, Bedfordshire-based company, which rents out subsea equipment for remote inspection and mechanical solutions in 40 countries around the world, saw revenue for the six months to June rise by 57% to just under £50 million driven by ‘continued high demand across both offshore renewables and offshore oil and gas’.
Offshore oil and gas revenue grew by 50% to £33.5 million, and renewables revenue increased by 74% to £16.3 million, while group like-for-like turnover rose 40% with acquisitions contributing around 14% growth and around 3% coming from currency movements.
Gross profit grew faster than revenue, up almost 69% to £39.3 million, taking the gross margin to 78.8%, well above its parent company which reports first-quarter earnings tomorrow.
Chief executive Allan Pirie said the firm’s strongest ever set of interim results were thanks to ‘continued positive momentum through the first half of 2023, with the group benefiting from our strategic investment in people and equipment, together with further increases to both utilisation and pricing’.
Although growth is expected to moderate in the second half, after the ‘unseasonal’ strength of the last year’s final quarter, ‘market fundamentals remain strong’ and the full-year outturn is now seen well ahead of the board’s previous guidance, added Pirie.
Ashtead made investors stacks of money – could this spin-off business do the same?
NEW NORTH SEA ALLIANCE
Elsewhere in the energy services sector, consulting and engineering firm Wood Group (WG.) announced a new $330 million strategic partnership with Harbour Energy (HBR) for North Sea operations.
Under the agreement, Wood Group will provide engineering, procurement and construction (EPC) and operations and maintenance (O&M) services for a number of Harbour’s offshore assets.
The agreement with the UK’s largest oil and gas producer is set to run for an initial period of five years, with five one-year extension options.
Wood Group shares added 0.25% to 156.5p while Harbour Energy shares rose 1% to 256p.
