Getech surges as it says annual pre-tax profit will double

7th Aug 2015 10:27

(ShareCast News) - Getech, which provides data, studies and services to the oil, gas and mining exploration sectors, surged after saying it expects pre-tax profit for the year to double.The company said results for the year to 31 July should show a very significant improvement year-on-year, with pre-tax profit expected to be £2m versus £1m last year, on income of £8.5m, up from £6.6m.Getech said its performance has been strong given the current market conditions, which include the rapid fall and volatility in the oil price and an extended period of retrenchment and redundancies throughout the oil and gas market globally.It said that although three major contracts with national oil companies were announced during the year to July 2015, only the Sonangol contract announced in September 2014 generated income. However, the company said it expects all three clients to generate significant income in the coming year.Getech's non-executive chairman, Stuart Paton, said: "In market conditions as difficult as these, we are delighted with the performance for the year and the resilience that this demonstrates to market volatility."I am particularly pleased that we have achieved this while two of the three new NOC contracts we announced during the year are still to start generating income. The market is expected to remain tight, with uncertainty about the timing of recovery of the oil price. However, we are increasingly confident about the prospects for 2016 as a number of significant discussions have already, at the request of our clients, been aimed at inclusion of Getech products in their 2016 budgets."At 10:40, Getech shares were up 8.6% at 50.50p.