Velosi 2008 Revenue, Profit Up; Plans Central Asia, Brazil Push

Oil and gas services company Velosi Ltd. (VELO.LN) Monday reported a 30% rise in full-year pretax profit, and said it plans to expand into central Asia and Brazil.

Velosi, which provides quality assurance and health and safety services to oil and gas majors, said 2008 pretax profit advanced to $14.9 million from $11.4 million a year earlier, on revenue up 56% at $182.1 million, ahead of expectations of $156 million.

Chief Executive Officer Nabil Abdul Jalil told Dow Jones Newswires the company won major contracts in Africa, the Middle East, Europe and Australasia during the year, with customers including ConocoPhilips (COP) and BP PLC (BP.LN).

He said Velosi plans to establish operations in central Asia and Brazil, where it sees big potential for its services and expects to start winning contracts by late 2009 or early 2010, probably with existing customers.

Velosi said its customers have deferred projects and are pushing for discounts. However, the firm has secured contracts that cover most of its forecast 2009 revenue, and it is confident of meeting expectations, Jalil said.

Analyst Ben Archer at Charles Stanley said he expects the company to report a 2009 pretax profit of $17.1 million on revenue of $195.9 million.

Company Web site: www.velosi.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [e-mail]