Wellstream reports growth

Newcastle-based oil and gas industry equipment supplier, Wellstream Holdings, has reported strong results for the period ending 31 December 2008.


The company increased its revenue by more than 35 per cent and its offshore production throughput by more than 25 per cent compared with the previous year.


Total revenue backlog increased from £295m on June 30 2008 to approximately £330m by the end of 2008.


The company attributed its results to significant contract wins in 2008, notably the Petrobas Framework Agreement, which will involve the production of about 700km of risers and flowlines and is worth in excess of £600m over the next four years.


Expansion plans for its Niteroi and Newcastle facility remain on track with work scheduled for completion at the end of the first quarter of 2009.


In a trading update, Wellstream said: ‘The group has seen strong revenue and earnings growth during 2008, has a robust balance sheet and order book and a high quality customer base.


‘The fundamentals of the sector continue to be attractive and our outlook for 2009 remains one of continued growth.’