Wellstream says it is well positioned for growth as it delivers full-year revenue rise

Oil and gas engineering services group Wellstream Holdings (LSE: WSM) said it has delivered revenues ahead of last year and the company’s good performance is in-line with expectations. In a pre-close update for the year ended 31 December 2009, the FTSE250 group said it is well positioned to capitalise on its significant growth opportunities.

Wellstream designs and manufactures flexible pipelines for use in the oil and gas industry. As a result of industry-wide project delays and short-term weaknesses, the engineering group initiated a cost reduction program during 2009. However despite the short-term challenges the oil service group completed a number of significant milestones during the year. Consistent with previous indications, year end order backlog was in excess of £160 million.
In June the company was awarded a contract from Petrobras (NYSE: PBR) to design and test technologies suited to the development of its deep water pre-salt discoveries offshore Brazil. Subsequently, Wellstream successfully delivered the Tupi Extended Well Test (EWT) project for Petrobras.

The Newcastle-on-Tyne headquartered group manufactured the first high pressure (15,000psi) risers, for Anadarko Petroleum's (NYSE: APC) Caesar Tonga project in the Gulf of Mexico. Elsewhere the company’s ‘SeaStream’ joint venture with offshore construction specialists SeaTrucks completed its first major offshore installation project. The divestment of the group’s onshore Flexsteel business for US$30 million to privately owned Prime Natural Resources Inc also supported cashflows.

According to Wellstream the company’s progress in 2009 represents a step change for the company in terms of its of capability and position for the future. The group said the sector's long term fundamentals remain positive  despite short term uncertainty, and while anecdotal evidence of improving activity supports some optimism, the board's outlook remains unchanged.  http://www.proactiveinvestors.co.uk/companies/news/11928/wellstream-says-it-is-well-positioned-for-growth-as-it-delivers-full-year-revenue-rise--11928.html