KBC.L Regulatory News (KBC)

13 Jan 2006 07:00

KBC Advanced Technologies plc13 January 2006 Strictly embargoed until 0700 on 13 January 2006 KBC ADVANCED TECHNOLOGIES PLC ("KBC" or "the Company") TRADING UPDATE KBC, a leading consultant to the oil industry, today announces a trading updatein relation to the results for the year ended 31 December 2005 which will beannounced on 23 March 2006. KBC confirms the anticipated improvement in tradingperformance for the second half of 2005 and return to profitability during thelast quarter. Consequently the Company is confident of meeting expectations fora trading loss of around £2m for the year as a whole, in line with theindications in its half year results statement on 22 September 2005. The improvement in trading is underpinned by a significant growth in contractawards and the forward order book. As anticipated in the half year resultsstatement, total awards for the year were more than £32m, giving a contractedorder book to take into 2006 of close to £19m. The comparable figures at 31December 2004 were total sales of £17m and an order book of £10m for 2005. The most significant award included in this total is the $11m contract,announced on 22 November 2005, with Sinopec in China. There are also a number ofother material awards across the business which are indicative of the improvingmarket KBC is seeing for its enhanced products and services, including: •Licences for Petro-SIM software and SIM models for Cosmo Oil's four refineries and head office in Japan. This complements the continuing Profit Improvement Programs being executed by KBC at the Cosmo refineries. •The redesign and upgrade of Belgian Refining Corporation's crude oil vacuum unit to enable the refinery to increase the production of high value products and reduce the production of low value fuel oil. KBC has completed the feasibility study and basic engineering and is now leading the detailed engineering phase. •The provision of technical services support covering technical, operations, reliability, and maintenance functions during 2006 to the Nerefco refinery at Europoort in The Netherlands. Nerefco is a joint venture between bp (69%) and Texaco (31%). •The implementation of operational excellence into production planning and scheduling for Sasol Synfuels in South Africa. This covers (a) developing the planning processes, (b) creating a broader awareness within the planning team of the business drivers, and (c) upgrading the planning systems to better reflect these business drivers. The project is a part of a broader multi-year operational excellence initiative across Sasol site operations. The contracts in the order book run for periods of between a few months andthree years and are expected to generate revenue of £16m in 2006, with thebalance running into 2007 and beyond. This contrasts with the order book of £10mat the end of 2004, which was comprised almost entirely of revenue which wouldbe taken in 2005. We are confident that the strengthened order book, togetherwith the opportunities for further contract wins in the current marketenvironment, should ensure that the improved trading performance continues in2006. - Ends - For further information please contact: KBC Advanced Technologies plc 01932 236314Peter Close, Chief ExecutiveNicholas Stone, Finance Director Arden Partners Limited 020 7398 1632Richard Day Weber Shandwick Square Mile 020 7067 0700James Chandler/Lana-Kathryn Pugh About KBC: (LSE:KBC)KBC Advanced Technologies plc, a leading independent oil and energy industryprocess engineering consultancy, delivers improved operating performance toowners and operators in the oil refining, petrochemical and other processindustries worldwide. KBC provides process consulting, strategic planningadvice, petroleum and chemical price forecasting, economic studies, and capitalproject services to help clients find the most cost-effective way to achievetheir short- and long-term objectives. KBC analyses plant operations andmanagement systems, recommends changes for material and measurable improvementsin profitability, and provides implementation services and solutions to assistclients in realising these improvements. In carrying out this work KBC makesextensive use of Petro-SIM, its proprietary refinery-wide simulation and processmodelling technology. Formed in 1979, KBC has principal offices in the UK, USA,Singapore, Japan, Russia, and the Netherlands. For more information, visitwww.kbcat.com. This information is provided by RNS The company news service from the London Stock Exchange