Getech cuts its full year losses

EXPLORATION data company Getech today revealed that it had cut its full year losses after trading improved in the second half of the financial year.

However, the company's performance had been affected by BP's Gulf of Mexico disaster and the Icelandic volcano, which caused serious disruption to air travel.

Leeds-based Getech provides complex geological and geophysical data to help oil companies such as Shell, BP and Exxon Mobil to decide where to sink new wells.

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In the year ended July 31 2010, the company's revenue was "stable" at 3.25m and the loss before tax was cut by 64 per cent to 228,497.

The company said it was profitable in the second half of the financial year, after the economic crisis and volatile oil price affected client budgets in the first half.

Peter Stephens, the non-executive chairman of Getech Group, said: "We are pleased to be able to report a return to profit in the second half of the year that meant a significant reduction in the loss for the full year versus 2009.

"We anticipate that in the first half of the current year we will start to benefit from the recent investments we have made in developing new geological products and are optimistic that our other initiatives will begin to bear fruit."

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As anticipated, oil companies continued their budgetary restrictions throughout 2009, Getech said.

The company said the oil price had remained at satisfactory levels above $70 per barrel, although the gas price, which affects the US business, had been lower than was necessary to stimulate the US domestic business.

In a statement, the company added: "The BP Macondo disaster had a major impact on the industry. While this did not affect our core business, it did have an immediate impact on one new initiative which had to be cancelled. In practice, the Icelandic volcano had a more direct impact than the BP disaster - it caused several staff to be stranded in various places and the cancellation of two major sales and marketing trips."

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