MARINE service group James Fisher and Sons said yesterday its offshore oil business grew profits by 26% during the first half of 2011.
Fisher, which also has defence, marine oil and specialist technical divisions, reported operating profits at the offshore oil arm hit £5.9million, up from £4.7million a year earlier.
The company said the growth in offshore oil had been the result of two factors: an improvement in activity levels in both the UK and Norwegian sectors of the North Sea and Fisher’s expansion in new oil-producing parts of the world.
It added: “The strong underlying demand for oil should underpin this improvement as the general level of offshore oil activity has picked up significantly this year, with projects that are likely to continue for some time to come.”
Fisher said the offshore oil division continued to invest in growth outside Europe.
Meanwhile, Aberdeen-based gas service subsidiary RigCool – acquired for £4.4million last September – has been integrated into the group’s Scan Tech Air Supply business.
Cumbria-based Fisher said the restructuring had created modest one-off costs, but was already producing financial benefits.
The group’s other north-east businesses include Dyce firm RMSpumptools, Inverurie-based consultant Buchan Technical Services, Oldmeldrum company Fisher Offshore and the Aberdeen unit of Scan Tech.
Fisher, which delivers a broad range of marine services from bases throughout the UK and in Scandinavia, posted a 5% year-on-year increase in underlying pre-tax profits to £14.3million on revenue up 12% at £148million.
Chairman Tim Harris said: “We are investing in those companies with the best record and prospects for organic growth and continue to track a number of interesting acquisition prospects.
“Our cash conversion is strong and, with a reasonable level of gearing, we have the ability to invest further in bolt-on acquisitions to strengthen our existing operations.”
Fisher said that second-half trading was in line with management expectations, adding it was well placed for further growth.
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