IHS Inc., a provider of engineering and energy data services, will be able to raise as much as $1 billion this year to buy oil-services companies, chief executive Jerre Stead said Wednesday.
IHS may buy as many as eight companies this year, Stead said in Singapore, declining to name them. Data-collection, seismic and engineering service providers are being targeted by Arapahoe County- based IHS, which last week bought Addison, Texas-based Geological Data Services.
“We have $200 million in cash, no debt, and can raise as much as $1 billion for acquisitions,” Stead said.
IHS may increase net income by up to 20 percent this year because explorers need more seismic and geological data to explore in difficult areas. Sales may climb as much as 12 percent in 2007, excluding revenue from acquisitions likely to be made this year, Stead said.
IHS shares, sold at $16 apiece in an initial share sale in November 2005, have more than doubled to close at $37.96 Wednesday.
Data providers and drilling- services companies made record profits last year because of a boom in exploration spending.
