The buoyant North Sea has sent profits soaring at shipping logistics, seafoods and oilfield services group J&J Denholm.
Annual results released yesterday show profits for 2012 jumped to £21million – up 40% from £15million in 2011.
The firm said the improvement was due primarily to a strong performance from its oil-field services business.
Profits at the division are up £13.3m, driven by strong performances in Kazakhstan, the Middle East – including a key new yard in Abu Dhabi – and the UK
Last night, chairman John Denholm said the North Sea, and the north-east, were driving the UK’s economic recovery.
“I am delighted with these results and in particular the performance of the oil-field services business,” he said.
“The Aberdeen economy is going like a bomb on the back of the oil and gas industry, and we have benefited from that.
“The north-east economy is crucial to UK growth and I believe it is the driving force behind the UK’s economic recovery.
Profits at the group’s logistics arm increased by £500,000 due to strong performances by the ship agency and terminal operations, but underlying results at its industrial services division fell by £1.1million.
Underlying results improved by £200,000 in the firm’s seafood business, but the lack of exceptional items to match the £12.3million gain on the sale of Northbay Fishing Company in 2011 meant the reported results fell back by £12.2million.
“After two quite unsettling years in the pelagic fishing industry, things seem to have been more settled this year,” Mr Denholm said. “We are proud to be one of the major players in the sector.”
The group continues to invest in its businesses and during the last year acquired ship agency Hamilton Shipping for £6million.
It also bought Aberdeen-based engineering firm Jolibar Metal Works and built a 500-man camp in Kazakhstan for a combined cost of £8million.
Mr Denholm said 2013 had also begun brightly for the firm. “The year has started well and we expect the results will move forward again in 2013, with further improvement at oil-field services,” he said.
“We are generating a strong cash flow and are looking at a number of opportunities to expand the business through acquisitions.”
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