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Aveva profit up 70%

Aveva profit up 70%

LONDON, May 27 (Reuters) – British engineering technology company Aveva Group Plc on Tuesday posted a 70 percent rise in annual profit, helped by high energy prices, and said its outlook for this year remains very positive.
Aveva, whose technology is used to build ships, power stations and oil rigs, said pretax profit before amortisation, share-based payments and goodwill adjustment rose to 47.9 million pounds ($94.74 million) for the year ended March 31 from 28.1 million pounds a year earlier.
That was above the 46.4 million average forecast in a Reuters Estimates poll of eleven analysts.
Revenue rose 34 percent to 127.6 million pounds, reflecting growth across all its key regions, the Cambridge, England-based company said. Aveva works around the world and has offices in more than 24 countries.
About 70 percent of the company’s revenue is linked directly or indirectly to energy prices, according to Landsbanki analyst Kevin Ashton.
“The oil and gas, power and marine industries remain buoyant, driven by high commodity prices and strong underlying end-user demand,” Chairman Nick Prest said in a statement.
With oil prices at record highs, companies have been increasingly looking at recovering oil from difficult environments, which is driving demand for Aveva’s technology in that sector, the company said. Oil, which has jumped about 20 percent so far in May alone, was trading around $133 a barrel early on Tuesday. Aveva also expects to see increased activity in the nuclear power industry, another key market.
Its shares, which have risen 26 percent since the start of the year, were up 2.2 percent at 1290 pence at 0704 GMT.
Aveva said it took on 148 people during the year, bringing its total staff to 730.
The company increased its full-year dividend by 59 percent to 6.65 pence a share.

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