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

GF Engineering secures Waitsia contract

GF Engineering has been awarded the contract for the fabrication of process piping for the Waitsia gas project Stage 2 in Western Australia. The contract was awarded on behalf of Clough, with the workshop fabrication proposed

Northbridge Industrial Services Plc

Vali JV positioned well for future production

Vintage Energy has recorded 100 per cent drilling success will all four Cooper-Eromanga Basin wells cased for future production. Outlined in the company’s quarterly report, Vali-2 was drilled to total depth of 3240 metres, with no

Northbridge Industrial Services Plc

Petro Tech to improve quality of Gippsland wells

Earth Resources Regulation has issued nine improvement notices to a Gippsland licence holder, requiring it to improve maintenance and security at its onshore gas wells and sites. Victoria’s resources regulator is taking action to ensure the

Northbridge Industrial Services Plc

Senex hits quarterly gas production target

Senex Energy has successfully reached it targeted initial plateau natural gas production during the quarter, with quarterly production increasing to 4.7 petajoules (PJ). Managing director and chief executive officer Ian Davies said growth activities remain on

Northbridge Industrial Services Plc

Rig mobilised for Norwest

Norwest Energy has reported that the mobilisation of the Ensign 970 rig to the Lockyer Deep-1 well, located in Western Australia has been completed The rig-up process is now underway, with the company now anticipating for

Northbridge Industrial Services Plc

Gladstone exports LNG record

Queensland has broken an LNG exports record with 23 million tonnes leaving Gladstone during the past financial year, a 3.72 per cent increase from the year prior. Treasurer and Minister for Investment Cameron Dick said these

Northbridge Industrial Services Plc

Central sells NT assets to NZOG

New Zealand Oil & Gas (NZOG) have received the green light from the Australian Foreign Investment Review Board to go ahead with the acquisition of Central Petroleum’s assets in the Amadeus Basin, Northern Territory. In May

Northbridge Industrial Services Plc

Warrego secures $50m for West Erregulla

Warrego Energy has received firm commitments for a $50 million placement, which will be used to fund its 50 per cent share of commitments for phase one of the West Erregulla gas project, Western Australia. The

Northbridge Industrial Services Plc

Odin-1 boosts JV confidence with gas confirmation

Metgasco, on behalf of its joint venture partners, has confirmed that the Odin-1 exploration well analysis of gas samples has confirmed gas compositions in the Tollachee and Epsilon formations at the South Australian project. The  ATP2021

Northbridge Industrial Services Plc

Senex makes progress on Roma North

Senex Energy has reported that the heavy lifting has begun to boost production of natural gas from its Roma North operation in Queensland’s Surat Basin. Two compressors have been into position as part of its infrastructure

Northbridge Industrial Services Plc

APLNG locks in gas deal with Qld facility

Australia Pacific LNG (APLNG) has secured a new gas supply agreement with Queensland Nitrates (QNP), a chemicals manufacturer servicing the resources sector from its facility in Central Queensland. The agreement is for 7.75 petajoules and follows

Northbridge Industrial Services Plc

Galilee increases production at Glenaras

Galilee Energy has optimised production at its Glenaras multi well pilot program in Queensland following the completion of the pump enhancement program (PEP). Natural gas is now being recorded in five of the outer vertical wells

Northbridge Industrial Services Plc

State Gas reaches total depth at Rougemont

State Gas has reached total target depth of 800m at the Rougemont-1 well, part of the company’s new Rolleston-West gas project in Queensland. On Sunday at 12pm the company hit total depth of the well, with

Northbridge Industrial Services Plc

Buru locks in second well for 2021 program

Buru Energy has confirmed the Rafael-1 will be the second well to be drilled as part of its 2021 Western Australian exploration drilling program, followed by the Ungani-8 well. Last week the company and its joint