Fuel station automation solutions developer Orpak Industries (1983) Ltd. (AIM:ORPK) saw a year-on-year drop in revenue and profits in the fourth quarter, but expects to expand its business in 2010. The company today published its financial report for the fourth quarter and full year of 2009.
Orpak posted $13.4 million revenue for the fourth quarter, down from $18.8 million revenue for the corresponding quarter of 2008, but 3% more than the $12.9 million revenue for the preceding quarter. Net profit attributable to majority shareholders fell to $1.9 million for the fourth quarter from $2.8 million for the corresponding quarter but more than the $1.7 million for the third quarter.
The company delivered its card-free secure fuel payment systems to 250 more gas stations and 100,000 vehicles during the fourth quarter, including 5,000 vehicles under a contract with BP plc (NYSE; LSE: BP) in Turkey.
For the year as a whole, Orpak's revenue fell to $57.2 million from $71.2 million in 2008. Non-GAAP net profit attributable to majority shareholders rose 14% to $8 million ($0.25 per share) in 2009 from $7.1 million in 2008.
Orpak will distribute a dividend of NIS 0.11 per share (about $0.03 at the current exchange rate) for February. The dividend will be paid in dollars at the exchange rate on the payment date of March 18. The dividend of NIS 3.7 million amounts to $990,000 at the current shekel-dollar exchange rate.
Orpak provided no figures in its guidance for 2010, but noted that, in January, it signed a contract with French payment solutions provider Ingenico SA to distribute an outdoor payment terminal for gas stations across North America. The company added that although the global economic crisis continues to affect sales, it is able to retain a high level of repeat business, and it expects to gain market share in emerging markets.
Orpak makes vehicle identification-based automated payment solutions for gas stations and fleet managers.
During 2009, Orpak completed equipping 570 BP gas stations in Turkey with its payment solutions, and delivered the first batch of 45,000 vehicle identification units out of a total expected order of 65,000 units. The company also received $1.3 million from its contract with Gilbarco Inc. to install Orpak equipment in the vehicle fleet at the company's Gasboy International unit.
Orpak CEO Hayim Kohen said, "Whilst the challenges of the economic conditions persist, demand for Orpak's products remains encouraging and we are focused on mitigating the negative impact of the market weakness, and so continuing the successes we have achieved to date."
Orpak is a subsidiary of OR Technologies Ltd. (TASE:ORTC). Orpak's share was unchanged at the opening on London’s Alternative Investment Market (AIM) today at ₤1.29, giving a market cap of ₤35 million. OR Technologies' share price fell 1.9% in early trading on the TASE to NIS 36, giving a market cap of NIS 209 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2010
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