Oil services firm Cape Plc (LON:CIU) today announced it will enter a new joint venture in Kazakhstan.
It has already operated in the country for twelve years and now teaming up with Lancaster Group, a privately owned Kazakh focussed investor, it is aiming to expand its range of opportunities in the country’s growing market.
Among these opportunities the new venture will provide services to one of the largest contractors on the major Kashagan field.
"We are pleased to enter into this joint venture with Lancaster, which builds on more than twelve years of safe and successful Cape operations in Kazakhstan,” said chief executive
“This provides an excellent opportunity to expand our business and to deliver future success for our shareholders."
The venture is a positive but it is not likely to have a material impact in the short term, says Shore Capital analyst Craig Howie.
Today’s news follows last month’s profit warning which saw the shares come under pressure.
In a note this morning Howie told clients that it will take time for investors to gain complete confidence in management's ability to sort out the operational issues, which he says will remain work in progress for several months, and get Cape back onto the growth trajectory.