Lamprell Plc, a U.K. oil and gas rig engineer, said it may be able to increase profit margins as global exploration heats up.
“We see more demand across the board,” Chief Executive Officer Nigel McCue said in a telephone interview. “As capacity becomes constrained, we’re able to improve margins.”
The shares of the Douglas, Isle of Man-based company rose 3.9 percent to 350 pence after it reported a 11 percent gain in net income, excluding exceptional charges, to $73.8 million for 2011. The order book was $1.2 billion at the end of the year.
Oil prices exceeding $120 a barrel are encouraging companies to find new sources of crude. The number of oil and gas rigs operating worldwide rose 10 percent last month from a year earlier, according to data published by Baker Hughes Inc.