Getech digs itself in after taking a hit from low oil prices
GEOSCIENCES business Getech said that performance had been affected by low oil prices, despite a moderate recovery.
The business made a loss before tax of £704,000, compared to profit for the six months ended 31 January 2015 of £707,000 as it “continued to be adversely affected by the difficult market conditions.”
The low oil price meant that there was a significant tightening of exploration budgets by oil and gas clients, and a large number of redundancies in the sector.
Revenue for the six months of £3.29m, up from £3.62m in the same six month period the year before.
Getech is hanging their hat on the newly-acquired ERCL Limited, which primarily addresses a different part of the exploration cycle. Directors are confident that it will continue to be a major asset for the group.
At the same time, Getech announced a £701,941 ($1m) contract, covering two regional reports: the global depth to basement study and our multi-satellite project, most of which will be delivered in the half year to July 2016
Stuart Paton, non-executive chairman of Getech Group plc, said:”Although the oil price has increased by almost 50% since its low point in January 2016, there is still considerable uncertainty as to the timing of a stronger recovery, and this continues to affect the availability of client budgets in 2016.
“However, we entered the second half of our year with strong cash balances and a substantial pipeline of sales opportunities.
“The Directors are also optimistic that a number of other opportunities which either did not complete in the first half or have been generated recently, will complete in the second half year.”
