Westhill-based Ashtead Technology has lifted its profit expectations for the year as demand – and prices – of its rental equipment has grown in both the offshore wind and oil and gas sectors.
The firm’s shares rose nearly 4% in early trading is it unveiled a sunny outlook in its maiden full year results since it floated on the London Stock Exchange in November.
The subsea specialist said it was enjoying “strong market growth drivers” across the energy sector which has allowed it to benefit from “positive utilisation and pricing trends”.
It said utilisation rates of its equipment in the first four months of 2022 was “strong” and has supported “increased pricing”.
Ashtead said it would continue to look at opportunities to buy rival companies as it said it now has the the “largest independent fleet” of rental equipment in the industry.
The number of employees also rose from 172 to 204 during the year, the company said.
The Aberdeenshire company operates nine regional hubs across North America, the Middle and Far East.
Chief executive Allan Pirie said both the transition to renewables as well as the need to produce oil and gas to bolster UK energy security would continue to drive the company’s growth.
He said: “Oil and gas will also continue to be important constituents in meeting energy demand as the industry continues its transition to cleaner energy production and the need to focus on energy security.
“Significant expenditure will be required to maintain oil and gas production from existing fields, as well as investment in new oil and gas developments and associated infrastructure.
“The fungibility of Ashtead Technology’s equipment and solutions across the offshore wind and oil and gas markets makes for a compelling and robust proposition, enabling the group to capture growth across both these adjacent markets.”
He added the company’s board “expects outturn for the year to be modestly ahead of its previous expectations.”
According to its results, group revenue rose 32% on the prior year to £55.8m.
Revenues from oil and gas customers rose 23% to £37.3m reflecting an “industry-wide recovery” in the wake of the pandemic.
But the company said it enjoyed “strong growth” in its services supporting the offshore renewables industry, with revenues up over 50% at £18.5m.
The sector now representing 33% of the group’s revenue – Ashtead is targeting revenue from the offshore renewables market of at least 50% in the medium term.
The company said it would continue to “review M&A opportunities to complement organic growth and consolidate a highly fragmented market”.
Pirie said: “One of the most significant challenges facing our industry is being able to deliver sources of energy in a more sustainable, affordable and responsible way.
“We have made a promising start to 2022 and look forward to an exciting future.”
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