The future of the energy sector is substantially under water. The oceans of the world hold vast reserves of oil and gas under the surface. No country can ignore the natural wealth in its territorial waters. The most powerful nations are scrambling to find ways of exploring the surfaces under international waters as well. That is why the core technologies of this company are so valuable in stock investment terms.
Though it has an incidental business of clutches, brakes, and motors for small applications, the thrust area of the company relates to submarine seismic exploration and electrical systems. The company is strongly integrated for all underwater oil and gas industrial activities. It has air guns, headphones, cables, and related devices for comprehensive service. The equipment is versatile and can meet custom exploration requirements. The air guns are known for their abilities to function in taxing underwater conditions with minimal maintenance support.
The management has an impressive track record of business results. Annual sales growth during the most recent quarter has topped 40%, while the Oil Well Services and Equipment industry has been at less than 25%. This is not a sudden surge, for the company is ahead of most of its peers in terms of revenue growth over five years as well.
Capital spending over the last five years has grown by more than 60% in the face of industry decline. The company’s Gross Margin has also been consistently ahead of its industry. The near term business prospects are encouraging given the surging demand for oil and gas. Experts expect submarine exploration activities to expand rapidly.
Let us hear your thoughts below: