Hanover Compressor to Restate Profit

Hanover Compressor Co. will restate earnings for two years after shareholders accused it this month of inflating profit from its natural gas businesses. The company said the Securities and Exchange Commission asked for information about the company’s Hampton Roads venture with Royal Dutch/Shell Group, which owned a gas plant in Nigeria.

Hanover, which provides compressors to gas pipelines and processors, will reduce earnings since 2000 by $8.9 million, the company said.

Hanover Chief Executive Michael J. McGhan said the accounting mistakes occurred as the Houston-based company spent more than $1.1 billion acquiring rival gas-compression businesses.

Hanover shares rose $1.92, or 14%, to close at $16.02 on the NYSE.