Offshore Hydrocarbon Mapping said yesterday its revenue had been severely hit by delayed projects in the six months to February 28.
The Aberdeen-based specialist in controlled source electromagnetic (CSEM) surveys to detect oil and gas said, however, a growing order backlog would drive a second-half improvement.
OHM chairman Dave Pratt said: “Bid levels, particularly for our marine CSEM services, are substantially higher than this time last year. We have recently been awarded several CSEM acquisition projects in the Asia-Pacific market, with additional awards in the North Sea.
“We now have three CSEM acquisition projects in backlog, and expect to add more as the year progresses.
“Although we remain cautious on financial performance, successful execution of these projects should drive improved revenue in our second half year and the upward trends we are observing in planned CSEM work give us growing confidence for the future.
“At the same time, we have made advances in the integration of CSEM, seismic and well data, which positions the group well for winning further business.
“We are grateful for the support of shareholders in providing further funds for not only working capital but to allow us to move ahead rapidly in development of a next-generation joint seismic and CSEM interpretation system.
“The integration of Rock Solid Images, which was acquired in 2007, provides an important seismic-based revenue stream independent of our CSEM business and also provides key technology for our integration of seismic and electromagnetic products.”
OHM said highlights of the first half included the exchange of future vessel charter liabilities of more than £29million for equity, significantly reducing costs and working-capital requirements.
It has been working on reducing costs and said in February last year it would reduce its workforce by 40 to 66. It emerged two months later that bosses had taken substantial pay cuts.
Also during the first half £2.5million was raised in a placing of new shares and a further conditional £3.36million has been added after the period end.
OHM reported pre-tax losses for the half-year of £6.18million yesterday, which includes a £2.1million one-off non-cash charge on conversion of vessel charter commitments into shares, compared with a £5.63million deficit a year earlier.
Revenue amounted to £3.25million for the period compared with £6.22million the year before.
The company said it expected to have a much stronger second half than in the last financial year, when total revenue fell back to £3million in the six months to August 31, 2009.