Thalassa has issued a trading update for subsidiary WGP Group (WGPG) following successful completion of the autumn Permanent Reservoir Monitoring programmes in the North Sea.
"Notwithstanding the continued 'difficult' trading conditions in the oil and gas industry, the Board is pleased to report that it expects WGPG results for the year ended 31 December 2016 to exceed previous estimates indicated by the Company in its announcement of 19 September 2016 for Revenue and Profit Before Taxation ("PBT") of $10.5m and $1.1m, respectively," it said.
"These improvements are the result of the $2m in late data sales announced on 10 October 2016, increased operational days and vigorous cost management.
"The Board is therefore raising its estimate for WGPG Revenue to $13.9m and PBT to $1.6m.
"This estimate incorporates substantial provisions for higher personnel related costs, and contingencies for maintenance repair and replacement, as well as for equipment upgrades that have been identified and will be incurred in 2016.
"Due to the challenge of quantifying the above mentioned costs at this juncture, the Board has taken a very conservative view on provisions which it would hope are in excess of final requirement and which could result in a further increase in PBT of up to $1.5m."