Energy logistics firm ASCO plans to increase profitability by 50% over the next five years, with the majority of its returns coming from new energies by 2030.
That growth and the future direction will come from the establishment of new sites and facilities both across the UK and internationally, said CEO Mike Pettigrew.
Meanwhile the Aberdeen-headquartered business will increase its presence in the alternative energies arena as it continues to support the traditional oil and gas industry.
In its latest set of accounts, for the year to December 31, 2022, ASCO notched up nearly £4. 6 million in pre-tax profits from continuing operations.
Revenue soared to about £638m, from around £419m previously.
The growth targets follow a “defining year” for the firm, with its acquisition from private equity firm Endless LLP, a company focused on building enduring and sustainable businesses, and the appointment of Mr Pettigrew as CEO.
Fresh start with new ownership for ASCO
© Supplied by BIG Partnership“With our owners fully supportive of investing in us, supporting our ambition and our growth, this has opened the doors to new opportunities.” said Mr Pettigrew. “It has given us options to invest in and renew our capital fleet, invest in expansion into new ports and territories and to potentially look at expansion through acquisition if there’s something that’s synergistic and makes sense as part of our growth.”
The foundations for greater geographical growth are already being laid, with new facilities now open in Port of Sunderland and Lowestoft in the UK, its latest international locations successfully established in Senegal and Suriname, and discussions being held globally across four continents.
“Moving into 2024 under new ownership is like getting a fresh start. They didn’t buy us for what we’ve done; they bought us for what we can be and what they see in us. They support our ambition and our hunger to grow and engage with new markets.
“We’re entering a new phase for the company, and growth is going to be at the heart of what we do in both existing and new markets. To do that effectively, we need to optimise our operations, make sure we have invested in our technology, that we’re structured properly and that our people are focused on what’s important to the business. At the same time, we must ensure we don’t lose sight of our commitment to our three fundamental obsessions of, safety, service and sustainability.”
Sustainability targets
Aside oil and gas, the firm provides logistics support for complex offshore assets all over the world, including renewables.
“While we will continue to provide that complete level of service and support to our traditional markets, our future must lie in new energies. That’s not just in offshore wind but other energy projects such as CCUS, hydrogen and ammonia and future fuels like sustainable aviation fuel (SAF) and e-methanol, which could potentially be used as a fuel for bunkering ships,” said Mr Pettigrew.
Any growth will be met by a continued commitment to sustainability, having already exceeded 2024 targets against a 2019 baseline.
That’s been achieved by ramping up activity in initiatives such as reducing waste to landfill, increasing recycling, sustainable packing to reduce plastic use, decreasing water production, sustainable procurement, procuring renewable energy and switching to low carbon transport.
“Sustainability is one of our core obsessions and will remain so, wherever our aspirations for growth take us,” said Mr Pettigrew. “We are committed to being net zero, not just carbon neutral. That means, for example, every time we set up a new facility, wherever that may be, we will always look at how to do that in the most sustainable way, adhering to our own best practice, reducing our own carbon footprint and leading by example.
“Some of the countries we are moving into have no legislation governing sustainability or commitment or adherence to CO2 reduction policies. That doesn’t mean we have to operate like that, and we won’t. Our target will always be net zero greenhouse gas emissions.
“We are looking forward to transformational times ahead. We are reinvigorating our business in tune with the paradigm shift in energy. It’s a hugely exciting time to be involved in the energy sector, and ASCO will be a critical enabler in the transition.”
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