The Board of Pressure Technologies plc today issued the following trading update ahead of the Group's AGM, which is being held today in Sheffield.
The year has started positively for the Group's largest division, Chesterfield Special Cylinders. The increase in activity in the deep water oil rig market, which began in the fourth quarter of the 2010/11 financial year, has, as forecast, continued into the 2011/12 financial year and our forward order book has strengthened considerably. CSC has secured orders for cylinders on nine drillships for the current financial year, two of which have been delivered. Market conditions for deep water oil and gas and the general oil services sector remain strong. We also continue to make progress in the development of the trailer and in-situ inspection markets. Business confidence at CSC remains high and activity should be ahead of market expectations for this division in the current financial year.
As announced on 18 January 2012, Chesterfield BioGas has won an order to supply a biogas upgrader on a project in Stockport. The Board's expectation was for two upgrader projects in 2011/12 and, although a number of projects are at an advanced stage of the tendering process, it is unlikely that any further orders won this financial year can be delivered in the year. There are a number of potential vehicle refuelling and trailer projects that are likely to reduce any shortfall in activity.
As expected, Hydratron is driving growth in the Engineered Products Division and order books have strengthened in both the UK and USA. This is underpinned by continued optimism in the global wellhead and controls markets led by the USA, which is aiming to become energy self-sufficient by 2030.
As a result of the size of the Group's order books and the immediate pipeline, the Board is confident of achieving market forecasts for the current financial year.