New product launches and demand from the Middle East have combined to help oil and gas consultancy Kelton Engineering lift its profits by nearly 90%.
The Aberdeen-headquartered engineering consultancy said UK trading had held reasonably firm in the year ended September 30, 2015, a period which saw Brent crude prices fall from just under $100 a barrel to about $50.
But bosses at Kelton expect the industry downturn to have a greater impact on income during the current financial year.
The firm’s UK revenue dropped by just 10% in 2014/15, while its Middle Eastern business enjoyed a double-digit jump.
Kelton, which was founded in 1991, employs about 30 people across its bases in Aberdeen, Essex, Qatar and the United Arab Emirates.
About 15 of these staff are based in Aberdeen.
The company has had a presence in the Middle East since the mid-1990s.
In accounts submitted to Companies House, the firm said its consultancy services were a hit in the Middle East and sales of its flow measurement software were also strong.
Managing director Iain Pirie said yesterday Kelton’s ability to come up with products which can help energy companies save money was the main driver behind its positive showing.
He added: “We try to innovate and develop products that will help the oil industry reduce costs. That’s the bottom line for us.”
Kelton’s pre-tax profits rose 87% to £797,000 in 2014/15, while turnover went up by nearly £600,000 to £6.75million.
The firm has predicted a dip in revenue of about 20% this year as the Aberdeen market struggles to get to grips with low crude prices, however, a strong order book and Middle Eastern work are expected to keep it in the black.
Mr Pirie said Kelton had recently tied up deals to supply Petroleum Development Oman and Malaysian oil giant Petronas with UncertaintyLive, a new online tool which helps companies reduce risk and costs by informing their investment decisions.
He added: “Our ambition is to ride the storm and keep levels of staff we’ve got. It’s a team effort – we’ve got good guys in the company and everyone pulls together.”
Kelton is a subsidiary of Gloucestershire-based engineering firm Alderley, whose metering system measured the quality of the first oil produced from the North Sea in 1975.
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