Oil drilling boost for Falkland Islands

Falkland Islands Holdings posted results ahead of expectations yesterday as the return of oil drilling to the islands boosted the logistics company's business.

The company, which has an 8.2 per cent stake in the explorer Falkland Oil and Gas, and which also runs businesses in the South Atlantic islands, posted a 17 per cent increase in full-year underlying profits to £2.7m.

Falkland Oil and Gas is currently drilling alongside Rockhopper, Desire Petroleum and Borders & Southern in the islands.

Falkland Islands Holdings also owns British art-handling company Momart and said the Government's spending cuts on museums had pressured the business, and it gave warning that growth in the coming year may be limited.