LONDON (SHARECAST) - Engineering consultancy, KBC Advanced Technologies, saw profits rise in the first half of 2011 after oil and gas firms turned to it to help manage costs.
Profit before tax in the first half year came in at £2.2m, compared to £1.8m the previous year.
The firm pushed up its interim dividend by 27% to 0.7p per share, which the board said reflected its confidence in the "continued improvement in business performance and its stated aim to increase the proportion of full year profits paid by way of dividend".
Revenues for the period were £26m, up from £25.6m the previous year, with contract awards of £23.5m against £23.1m in the first half of 2010.
The resulting workload backlog at 30 June 2011 was £55.8m, compared to £39.8m reported at 30 June 2010 and £58.7m at 31 December 2010, the company said.
"Our clients remain under financial pressure in the parts of the oil and gas and petrochemical industries that we serve, providing opportunities for KBC as those sectors continue to evolve operationally and strategically," said chairman Ian Godden.
"The five key drivers most relevant to our business are: oil demand growth, the pressure on refining margins as a result of price differentials in oil products and crude, oil price volatility, customer M&A activity, and the availability of experienced engineering staff," he said.
"These drivers were all positive during the period, offering continuing opportunities for KBC to grow its business."
The firm expects an uplift in demand, particularly for its software, in the second half of the year and that it will meet expectations in its full year results.
