Oil industry consultant KBC Advanced Technologies says last year’s results will show ‘sustained profitability’ after 2005’s £2 million loss.

In an upbeat trading statement, George Bright, who became chief executive of the AIM-quoted company last May, says the first-half improvement, which turned £1.7 million losses into a £400,000 pre-tax profit, has continued in the second six months. Contract awards rose ten per cent to more than £35 million amid ‘extremely positive’ market conditions for KBC’s products and services, in a world facing ‘a shortage of refining capacity for some years to come’.

According to Bright, revenue taken from the resulting contract order backlog increased 20 per cent, resulting in a 50 per cent rise to £27 million in the backlog itself between the start of 2006 and now. Contracts won by the company in the second half-year include a strategic alliance with Malaysia’s state oil corporation Petronas, profit improvement programme sales to Saudi Aramco and contracts to develop operating procedure manuals for Valero Refining of the USA.

Bright says KBC’s consulting resources are being fully used at present and will remain so during the current first quarter. He adds that the board sees ‘no reason for this to change in the near future and therefore looks forward to continuing growth in the order book and profitability during 2007’.

KBC’s shares, which have swung between 26.5p in 2004 and 62p in 2005, are up 6p today at 40.25p, valuing the company at £22 million, 22 per cent above Growth Company Investor’s recommendation in September. Hold on.

KBC Advanced Technologies	AIM	£16.27m	28.50p	0.00p
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