Cape profit falls but says energy demand will drive growth

British energy services firm Cape has reported a marginal drop in its first-half adjusted pre-tax profit, hurt by lower levels of activity in the Gulf region, but said it would benefit from the rising demand for global energy.

The company, which provides insulation services to liquefied natural gas terminals, said it was on track to deliver full-year results in line with its view, primarily driven by demand for its construction support services.

The number of planned outages in the power sector in the United Kingdom - its largest market - is expected to drive higher revenues in the second half, it said.

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Interim dividend was raised by 12.5 percent to 4.5 pence, said the company, whose clients include oil giants like BP Plc , Shell and ExxonMobil .

January-June adjusted pretax profit fell to £34m from £35.5m last year. Exceptional charges of £3.5m related to the move to main market, shifting its tax-base and cancellation of its bank facility.

The company, which has offices in locations including Brigg in North Lincolnshire and Doncaster, said it anticipated an entry into the FTSE 250 index in September.

Revenue rose marginally to £335m.

Cape shares, which have gained 19 per cent since the beginning of the year, closed at 486.75 pence yesterday on the London Stock Exchange, valuing the company at £550.8m.