Wellstream
Wellstream Holdings trading in line with company expectations
Oil field services provider Wellstream said trading continues to be broadly in line with its expectations, with revenue for the second half of the year expected to be at, or marginally ahead of, the first half of 2008 as previously indicated.
In an interim management statement for the period July 1- November 18 2008, Wellstream said: Demand for our services remains robust and, despite the current volatility seen in the oil price, we continue to have good long term forward visibility on new projects. We have a secure long term funding position extending to 2013 and this facility has recently been increased by £15 million to some £100 million.”
Operationally, the company continues to perform well. Its major manufacturing project for the second half of this year, BHP Billiton Pyrenees, is proceeding to plan. The capacity expansion is also on schedule and on budget and is expected to come on stream at the end of the first quarter 2009, increasing group capacity by some 40 percent to 570 normalised kilometres (nkm) of pipe per annum.
Whilst backlog remains at historically high levels, at approximately £350 million, a degree of market uncertainty has been introduced by general economic conditions and recent oil price movements, particularly with regard to the potential for project delays, which leads the board to be more cautious regarding Wellstream’s outlook for 2009.
Wellstream designs and manufactures bespoke flexible pipeline products, systems and solutions for fluid transportation. Its pipeline portfolio includes established product lines such as dynamic flexible risers and static flowlines, for deep and ultra-deepwater environments, in addition to newer products designed for onshore FlexSteel and high temperature/high pressure products for drilling and service applications. With moreb than 1000 employees, Wellstream has offices/facilities in the UK, Brazil, USA, Canada, and Australia.
Register here to be notified of future Wellstream articles.