(Updates with additional detail, outlook)
OSLO (Thomson Financial) - Acergy SA posted second quarter operating profits ahead of consensus, boosted by a high level of demand from the oil and gas industry, but warned that in the short-term, delayed project awards could impact its financial performance.
For the second quarter, the oil services firm posted operating profits of $105.9 million, up from $82.7 million last time, and ahead of the $100 million consensus forecast of analysts polled by TDN Finans.
'We have delivered a strong financial result in a quarter of high activity,' said chief executive Jean Cahuzac, pointing to a number of successfully completed deepwater projects.
Net profit came in at $61.8 million, up from $48.8 million last time, and in line with the $62 million figure expected by analysts.
Sales, meanwhile, rose to $742.4 million from $634.0 million a year ago, and ahead of the $732 million consensus forecast.
However Cahuzac said project awards have continued to be delayed, and that this has impacted Acergy's order backlog, which stood at $3.65 billion at the end of the quarter, down from $3.97 billion at the end of the first quarter.
'These project award delays, combined with the arrival of additional tonnage, may have further impact in the coming months,' he said.
'However, we believe this represents only a short-term challenge for ourselves and the industry and it should not be seen as indicative of change in the medium and long-term market prospects, which remain robust.'
Looking ahead, Acergy said it has kept its full year sales guidance steady at $3.0 billion, and that the adjusted EBITDA margin is expected to show a 'moderate improvement' over the past couple of years.
Capital expenditure, meanwhile, it seen at $300 million.
Despite the short-term contract concerns, Acergy said it remains confident about its longer-term prospects.
'Market visibility is good and the medium and long-term fundamentals for our business remain robust,' it said.
At 1:45 p.m., shares in Acergy were up 3.85 percent at 108 Norwegian crowns, while the OSEBX benchmark index was 1.23 percent higher at 441.07. alastair.reed@thomsonreuters.com ar/cmr/ar/cmr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
