RPS acquires US consultancy firm - UPDATE

RPS has acquired Knowledge Reservoir Group Inc., a reservoir engineering and geosciences consulting firm, for a maximum consideration of 20m dollars in order to further develop the company's energy activities.

RPS has acquired Knowledge Reservoir Group Inc., a reservoir engineering and geosciences consulting firm, for a maximum consideration of 20m dollars in order to further develop the company's energy activities.

The business operates primarily in the US, but undertakes projects in other parts of the world.

Its activities will be merged with the international activities of RPS Energy.

The cost of this integration will be incurred in 2013, reducing this year's contribution to group profit.

Alan Hearne, Chief Executive of RPS, said: "We are delighted to have been able to strengthen further our reservoir engineering and geoscience capabilities, particularly in the US, with the addition of a high quality business such as KR. The technical and geographical fit between KR and our existing businesses in this specialist area is excellent and we see increasing demand across our oil and gas businesses worldwide for this type of expertise."

In the year ended December 31st 2012 the business had revenues of $25.7m (£16.5m) and profit before tax of $3.0m (£1.9m), after adjustment for non-recurring items.

Net assets at the year-end were $14.0m (£9.0m). Gross assets totalled $26.0m (£16.7m), while net debt amounted to $5.9m (£3.8m).

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021