Getech celebrates deal extension with major oil company

OIL exploration firm Getech Group has announced a “significant” three-year ​contract ​extension with an unnamed major national oil company amid increasing interest from oil firms around the world.
Raymond Wolfson, Chief Executive Officer, of getechRaymond Wolfson, Chief Executive Officer, of getech
Raymond Wolfson, Chief Executive Officer, of getech

Leeds-based ​Getech, which supplies data to BP and Shell, declined to name the company, but confirmed it isn’t British.

Getech’s chief executive Raymond Wolfson said: “This is a significant contract for us. It’s a good, long-standing client and the fact they’ve extended for three years is a positive step.

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“Most national oil companies tend to have a lot of bureaucracy and it can take ages to get anything done. The big benefit to us is our day-to-day contacts find it easier to buy things from us.”

The firm, which was spun out from the University of Leeds, announced an expected fall in half year pre-tax profit from £2.2m to £1.0m in the year to July 31 after a difficult first nine months when temporary budget cuts led to lower spending across the whole oil and gas exploration sector.

But the group said its final quarter was strong and this momentum has continued into the new financial year.

The group said revenue fell 18 per cent to £6.6m over the year, but it is raising the final dividend 10 per cent to 1.76p a share, reflecting optimism over the coming year.

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“We are having a lot of good meetings with clients. We’re confident the coming year will be much better,” said Mr Wolfson.

Analyst Eric Burns at WH Ireland said: “One particular standout is the 10 per cent increase in the dividend against our expectation of a dividend cut.

“Client feedback suggests Getech will feature in their 2015 budgets.”