Stock Market News
Northbridge narrows losses after oil price recovers
Industrial services and rental company Northbridge Industrial Services narrowed annual losses as revenues picked as a result of higher oil prices and improvements in rental revenues at one of its subsidiaries.
After three very difficult years for the oil and gas industry, group revenues finally climbed higher, up 7.9% to £25.7m in the calendar year, helping cut pre-tax losses by 20% to £4.4m along with the much reduced cost base after cuts made in recent years.
Earnings before interest, tax, depreciation and amortisation were down 5.88% to £3.2m before exceptional costs, of which there were none compared to the £1.4m in the previous year relating to the restructuring actions taken as a result of the oil market downturn.
Northbridge reduced its net debt by 8.42% to £8.7m in 2017 and since the year end has undertaken a successful re-organisation of its debt facilities until 2021, including the issuance of £4m of loan notes supported by Royal Bank of Scotland, which is a substantial existing shareholder. Capital repayments have been reduced, which will increase free cash resources and provide flexibility to invest for growth.
Chief executive Eric Hook said, "After an unprecedented three very difficult years in the oil and gas industry, which have adversely affected both parts of our business, we now believe that a recovery is in sight.
"During 2017 we saw a stabilisation in our oil tool revenues albeit at a very low level, as actions taken by the producer nations have largely eliminated crude oil surpluses.
"The additional cash flow enjoyed by the industry due to higher oil prices; is now enabling a return to investment in exploration and production, which will benefit both Tasman Oil Tools and Crestchic Loadbanks.
"The work we have undertaken to re-organise the group and reduce costs over the last three challenging years will also help us return to profits in the future."
As of Thursday afternoon, shares in Northbridge had lost 2% to 117p, having gained 25% since the start of 2018.
After three very difficult years for the oil and gas industry, group revenues finally climbed higher, up 7.9% to £25.7m in the calendar year, helping cut pre-tax losses by 20% to £4.4m along with the much reduced cost base after cuts made in recent years.
Earnings before interest, tax, depreciation and amortisation were down 5.88% to £3.2m before exceptional costs, of which there were none compared to the £1.4m in the previous year relating to the restructuring actions taken as a result of the oil market downturn.
Northbridge reduced its net debt by 8.42% to £8.7m in 2017 and since the year end has undertaken a successful re-organisation of its debt facilities until 2021, including the issuance of £4m of loan notes supported by Royal Bank of Scotland, which is a substantial existing shareholder. Capital repayments have been reduced, which will increase free cash resources and provide flexibility to invest for growth.
Chief executive Eric Hook said, "After an unprecedented three very difficult years in the oil and gas industry, which have adversely affected both parts of our business, we now believe that a recovery is in sight.
"During 2017 we saw a stabilisation in our oil tool revenues albeit at a very low level, as actions taken by the producer nations have largely eliminated crude oil surpluses.
"The additional cash flow enjoyed by the industry due to higher oil prices; is now enabling a return to investment in exploration and production, which will benefit both Tasman Oil Tools and Crestchic Loadbanks.
"The work we have undertaken to re-organise the group and reduce costs over the last three challenging years will also help us return to profits in the future."
As of Thursday afternoon, shares in Northbridge had lost 2% to 117p, having gained 25% since the start of 2018.
Related share prices |
---|
Northbridge Industrial Services (NBI) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price