Offshore Hydrocarbon Mapping (OHM), of Aberdeen, said yesterday a new chapter had opened for the business after the toughest year in its history.
Chairman Peter Reilly was bullish about prospects despite the firm announcing a significant widening of annual losses.
Shares in OHM, which plans to assume the name of its Rock Solid Images subsidiary after its next AGM, fell 5.66% to 6.25p after the “watershed year” results.
OHM provides advanced geophysical processing and interpretation consulting services to the oil and gas industry. It started 2011 much leaner than a year earlier after offloading a large chunk of the business.
In a deal announced in September, OHM’s loss-making marine controlled-source electromagnetic (CSEM) survey arm was sold to a new joint-venture controlled by Norwegian investors.
On paper, the CSEM operations were jettisoned for less than £100,000 but the buyers agreed to invest £2million in what was left of OHM and also to set up a service deal worth nearly £2million to the company.
Mr Reilly said the firm, which now employs a handful of people in Aberdeen and about 50 in Houston, was now focused on growing revenue, providing excellent service, continued investment in research and development, and achieving profitability as soon as possible.
He told the Press and Journal there was a good spirit about the firm since the management team had “put into play things that were desperately needed”.
He was speaking after OHM announced pre-tax losses of £17.25million for the 12 months to August 31, 2010, which marked a deterioration at the bottom line from an £8.71million loss the year before. The latest deficit included impairment charges of £6.7million. Revenue was up at £9.925billion, against £9.227billion in 2008-09.
OHM said: “After an optimistic start, the financial year to August 31, 2010, turned out to be our toughest on record. This was caused principally by a shortage of new CSEM survey contracts, leading to underutilised charter vessels with attendant fixed costs. The board was also increasingly focused on ensuring the company survived through this very difficult period, which meant that other areas of the business suffered too.”