Six months ago, I told my Foolish friends not to count out offshore oil and gas contractor Acergy SA
Let's revel in Acergy's first-quarter financial results for a moment. High activity levels around the world, particularly offshore West Africa, lifted revenue by 12%. Strong project execution led to significant profitability improvements, raising adjusted EBITDA margins from 12.5% to 16%. That was good for a greater-than-20% boost to the bottom line.
The contracts are just rolling in for Acergy. In addition to the Total SA
As a result of these and other contracts, Acergy's backlog ballooned by 25% sequentially. Equally important, the company's project slate has pushed out further into the future, which enhances revenue visibility. At the end of the fourth quarter, 30% of backlog was for post-2008 work. That figure now stands at 52%.
I am confident that this subsea specialist is going to continue bagging big deals, and not simply because Transocean
While Acergy has rebounded a bit so far in 2008, I still find it a compelling oil patch investment option, along with tumultuous twin Helix Energy Solutions