While PCH managing director Jamie Cullen conceded Chieftain's planned exit had kept a lid on the company's share price, he was comfortable a sale hinged on Chieftain getting the price right. "We don't talk to them about pricing, but I understand they're looking to realise medium-term value, not short-term value," Mr Cullen said.

Earlier, chairman Bill Ryan told shareholders at the company's annual meeting in Perth that thanks to the start-up of contracts worth $30 million in the North West Shelf, Caspian Sea and the United Arab Emirates, the company was in its best ever financial shape.

In the first four months of 2002-03, PCH had generated pre-tax profits of $1.25 million on revenues of $10 million, compared with a $445,000 loss on revenues of $14 million in 2001-02.

Despite the strong numbers, PCH shares fell 0.5c to finish 15c in yesterday's trading.