MIS projecting 2007 revenues of $300 million

UNITED Arab Emirates' based Maritime Industrial Services has reported a 101% increase in net profits for 2006. Full year results for the Norwegian over- the-counter listed company show revenues totaled $177.2 million, compared with $108.8 million in 2005 - year on year growth of 62.8%.

Net income reached $19.3 million, compared with $9.6 million over the same period for the previous year - year on year net profit growth of 101%. Revenues for the fourth quarter were $61.5 million - year on year growth of 82.8%.

A company statement said it anticipates further growth in 2007,with revenues projected at $300 million, and net income at $30 million

MIS provides integrated onshore and offshore engineering, procurement, fabrication, maintenance and construction services for fabrication of oil, gas and petrochemical processing equipment, marine and structural items.

MIS decision to expand its business to build offshore jackup rigs in 2006 contributed revenue of $20.1 million in the same year. Awards during 2006 added further orders backlog of $341 million and after recognition of $177 million in revenue, MIS closed the year with a new record orders backlog of $273 million.

Charles L. Davis, MIS chairman, said the outlook for MIS in 2007 is very positive after last year's decision to expand in the rig building business. In October 2006 it raised additional capital of $60 million, to capitalise on the current boom in offshore oil explorations and expand interests in the rig manufacturing business.

Jerry Smith, MIS managing director, said: "The current high demand for oil and gas has resulted in an unprecedented amount of offshore exploration activities and boosted worldwide offshore rig utilization to 86%, one of the highest levels ever.

"Middle Eastern jack up drilling rigs are working at dose to 100% utilisation rates and the GCC market for jack-up rigs is the fastest growing in the world. "MIS, with its extensive offshore construction and fabrication experience and with yards and operations in the UAE,Saudi Arabia and Kuwait, is ideally positioned to meet the large demand for offshore rigs."

In 2006 MIS won the contract for building two jack-ups from Mosvold Jackups which are under construction in the MIS yard. Both are said to be ahead of schedule.

MIS are also actively marketing slots for 2009 delivery and say they have several interested prospects.

To ensure delivery of three rigs in 2009, MIS has proceeded with a firm contract with National Oilwell Varco for three drilling packages and with BLM for three jacking systems. The remainder of the long lead equipment can be supplied within the schedule after award. "With the recent capital injection, our broadened shareholder base and our state of the art yard and facilities, we are confident that MIS will be able to capitalise on the opportunities presented by the fast growing oil and gas industry in the region" Smith said.