Getech sees good growth ahead

Shares in exploration data firm Getech jumped nine per cent today after the company announced strong growth in profits and revenues.

The Leeds-based company, which sells complex geological and geophysical data to oil companies, reported a 22 per cent rise in pre-tax profits to £358,000 for the six months to January 31.

Chairman Stuart Paton said strong demand for the group’s data means the group is positive about both its medium and long-term prospects.

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“We continue to devote significant effort to research projects and looking at new areas of business that we are confident will lead to revenue growth in the future,” he said.

The University of Leeds spin-out counts Shell, BP and Exxon Mobil among its customers. They use Getech’s data to help them decide where to sink new wells.

The company has been boosted by consistently high oil prices, which are encouraging spending.

Revenues rose 20 per cent to £3.2m over the six month period.

The group will pay an interim dividend of 0.2p a share.

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Getech said it is starting to see the benefit of investment in its Global Programmes interpretative data project.

This new project, which will take three years to complete, will explain how the geology and a geography of an oil basin have changed over time.

The first sponsorship agreement for the programme was signed in December 2011 and the second in early February 2012.

Getech said these sponsorship agreements provide consistent income from the sponsors who are committed to a three year package.

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The group expects to sign up a number of new sponsors this year.

“We remain confident that data sales will continue to be strong and are very pleased that the level of proprietary work is also growing,” said Mr Paton.

“In addition to substantial projects, we are also seeing increased demand for consultancy services, driven in part by the increasing awareness of the Global Programmes and the ongoing presence at major international conferences.”

He added that oil prices have remained strong, typically above $100 per barrel, which is encouraging for exploration in general and for Getech’s part of the market in particular.