Northbridge Industrial Services Plc Much Improved Performance Continues

Northbridge Industrial Services Plc (LON:NBI), the industrial services and rental company, today issued the following pre-close trading update in advance of its interim results announcement for the six months ended 30 June 2019, which is scheduled to be released on 26 September 2019.

Trading in the six months under review continued to show a much improved performance since last year and has been consistent with the Group’s forecasts. As mentioned in the AGM statement on 4 June 2019, the impact of a recovery in revenue results in our operational gearing benefitting cash flow significantly as well as continuing to improve EBITDA.

Recovery in our key end markets including the oil and gas market, supported by stable pricing and a gradual improvement in overall rig counts, is now beginning to have a beneficial impact on both of Northbridge’s businesses, Crestchic Loadbanks (“Crestchic”) and Tasman Oil Tools (“Tasman”).  Consequently, the Group is confident that the results for the full year ended 31 December 2019 will be in line with management’s expectations.

Northbridge has two core activities, Crestchic Loadbanks and Tasman Oil Tools. Crestchic is a specialist electrical equipment business which manufactures, sells and rents loadbanks and transformers from its base in Burton on Trent and has depots in France, Germany, Belgium, UAE and Singapore. Crestchic also has satellite locations in China and the USA. Tasman Oil Tools rents drilling equipment to the oil, gas and geothermal industries from its sites in Australia, New Zealand, Malaysia and the UAE.

Crestchic – Electrical power reliability

The UK and European activities of Crestchic continue to perform well and are largely resilient to market conditions. Over the last few years the data centre sector has proved a strong market for Crestchic in both power and heat load testing, and we are seeing this as an emerging core sector for Crestchic both in Europe and other more developed economies. The US operation, which was started in 2016, has continued to grow and year on year revenues have increased. Our other overseas markets for power projects, principally relating to natural resources and shipyards, have begun to show some signs of renewed activity and this has continued into 2019, as the recovery in the energy market continues. Crestchic started 2019 with its largest ever new year order book for the sale of manufactured equipment.

Tasman – Drilling tool rental

The improvement in sentiment in the oil and gas market experienced during 2018 has continued into the first half of 2019. The rig counts in Tasman’s immediate areas of operation have seen improvements year on year, particularly in Australia, and are set to continue with a renewed focus on gas and LNG exports.

As a result, activity levels in our rental business of Tasman continue to improve. Our focus on quality, service levels, customer relationships and ongoing selective investment, has enabled Tasman to increase its market share in our key operations in Asia Pacific.  As a result, year-on-year revenues are showing significant gains in large parts of our core markets, albeit from a low base.

Outlook

The Group remains confident in the resilience of the recovery in our markets and we expect to make good progress for the rest of 2019 and look forward to a profitable future.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Northbridge Industrial Services Plc

More articles like this

Northbridge Industrial Services Plc

UGL secures $135m in contracts

CIMIC Group’s UGL has been awarded contracts in the resources and utilities sector collectively worth $135 million. UGL is CIMIC’s end-to-end asset solutions provider that specialises in the entire value chain of design, construction, to overhaul

Northbridge Industrial Services Plc

Tasman Oil Tools finalist at SafeWay Awards

IFAP is pleased to announce the finalists for the SafeWay Awards 2021. We thank all individuals, teams and organisations that nominated for a SafeWay Award in one or more of the ten categories.  All nominations were

Northbridge Industrial Services Plc

Beach Energy sets sights on new target

Beach Energy released its investor update this week, in which it outlined its low-risk strategy targeting 28 million barrels of oil equivalent (MMboe) in the second half of 2024. Targeted growth represents a compound annual growth

Northbridge Industrial Services Plc

Northbridge Industrial Services proposed capital reduction

Northbridge Industrial Services plc (LON:NBI), the industrial services and rental company, has announced that a circular to shareholders in connection with a proposed capital reduction by the Company, which contains a notice convening a general meeting

Northbridge Industrial Services Plc

NZOG locks in Central NT assets

New Zealand Oil & Gas (NZOG) has agreed to purchase interests in three producing Northern Territory assets from Central Petroleum, with the remaining third party approvals being received. All conditions precedent to the transaction have now

Northbridge Industrial Services Plc

Study highlights Ichthys benefits

An independent report has forecast a bright decade ahead for the Northern Territory courtesy of INPEX-operated Ichthys LNG. The assessment, by leading independent economics firm ACIL Allen, outlines social and economic benefits to the Northern Territory

Northbridge Industrial Services Plc

Comet Ridge completes placement ahead of Mahalo North drilling

Comet Ridge has completed a $5 million placement to bolster its working capital position ahead of commencing an appraisal program focussed on gas flow and reserves addition, initially at Mahalo North, Queensland. Managing director Tor McCaul

Northbridge Industrial Services Plc

Wintershall Dea confirms oil discoveries in Norwegian Sea

Oil and gas company Wintershall Dea has completed the drilling of an appraisal well on the Bergknapp oil discovery, located in the Norwegian Sea, and found additional volumes. Drilled from the Deepsea Aberdeen semi-submersible rig, the

Northbridge Industrial Services Plc

Red Sky SPP to fund Killanoola

Red Sky Energy has advised its share purchase plan (SPP) has closed, with the funds raised to be applied to further develop and fast track the Killanoola oil project, South Australia. The SPP allows existing eligible

Northbridge Industrial Services Plc

Melbana extends Beehive work program

Melbana Energy advises that the National Offshore Petroleum Titles Administrator has approved a 20 month suspension of the permit conditions in respect of the Permit Year 3 work program for WA-488-P. As a result, Permit Year

Northbridge Industrial Services Plc

APLNG reaps benefits for Origin results

Origin Energy chief executive officer Frank Calabria has described operating conditions as challenging this year due to low prices and the impacts of COVID-19 across its key commodities of electricity, natural gas and oil. Outlined in