Oil firm strikes record results in robust market

The Newcastle-based manufacturer, which listed on the London Stock Exchange earlier this year, unveiled a 53 per cent lift in revenue to almost £100m for the six months to June 30.

Earnings before interest, taxes, depreciation and amortization (EBITDA) almost tripled in size to £17.8m, compared with £6.1m in the same period last year.

Executive chairman John Kennedy said: "During the first half of 2007, Wellstream has experienced continued growth amid expansive and robust market conditions.

"We continue to see growth in the offshore deepwater market segment with growing investment in all aspects of subsea completions, which of course is the sweet spot of our operational activities."

Walker-based Wellstream, which employs about 500 people in the region, floated on the stock exchange in April. Since then, its share price has grown from 378p to close last night at 594p.

In May, the company opened a plant in Brazil, employing 150 staff. It forged an alliance with joint venture partner Nigerian Sea Trucks Group in June.

The joint venture, called Seastream, will involve supplying 60km of pipe, manufactured in Newcastle, to Australian mining, oil and gas company BHP Billiton.

Sea Trucks will then install the pipeline in the Pyrenees offshore development, off Western Australia.

Wellstream employs 819 staff around the world and, yesterday, chief executive Gordon Chapman said the outlook was promising.

"Due to the current project and product mix, utilisation levels have been ahead of expectations in the Newcastle plant and this is anticipated to continue for the remainder of 2007," he said.

"The ramp up of production in Brazil is expected to continue in line with expectations.

"Looking forward to 2008, we expect the robust market conditions.

"The present strong oil and gas market has compelling long-term fundamentals, which the board believes will provide ample opportunity for continued growth in our business segments."