Bosses at mechanical engineering group Enermech said they expect recovery in the oil and gas industry to take hold in the latter part of 2017 – at the earliest.
The Aberdeen-based company, which posted a 27% rise in turnover across its global operations in 2014, said its 2015 revenues were “in line” with its most recent annual accounts which have been posted at Companies House after a delay.
Chief executive Doug Duguid said that group revenues in 2015 would be in line with what was achieved in 2014, a performance which he said he was pleased with against a depressed oil price.
Mr Duguid said: “We are working in a challenging environment given the continuing decline of the oil price, with most customers focused on reducing operating costs.
“Our multi-business line integrated offering puts us in a good position to respond to the industry’s call for greater co-operation and we are finding common solutions which can greatly increase efficiency.”
Mr Duguid said EnerMech had witnessed a drop in activity in harder hit regions during 2015, including the UK sector, but was continuing to invest in infrastructure and extend market share in other regions where growth opportunities existed.
He added: “We expect it will be the latter part of 2017 at the earliest before the downturn eases but we have plans in place to address this and as we enter 2016 we are fortunate that we have an international infrastructure and strong back-log of projects in the pipeline.
“We have identified growth potential in Africa, Middle East, Caspian and the Americas and will draw upon lessons and expertise gained in mature areas such as the UK and Norway to maximise those opportunities.”
Enermech, which employs 2,300 people and operates from 35 UK and international bases, saw turnover rise to £258.9million from £202.5 million in 2014. Its UK revenues, which also includes its operations in Norway, Africa, Middle East and Caspian, also rose 8% to £141.7million in 2014. The UK division’s pre-tax profits also swung from a loss of £2.1million in 2013 to £4.2million in 2014.
The number of employees working for the UK based division rose to 865 from 786 in 2014, although last year the company said its global work force numbered 2,400.
The company is headquartered in Aberdeen with UK operations in Great Yarmouth and Bristol. In Norway, it has operations in Stavanger, Bergen as well as Houston, Broussard, Slidell, Trinidad and Mexico in the Americas. In the Middle East it has bases in Abu Dhabi, Dubai, Qatar, Saudi Arabia, Azerbaijan, Kazakhstan, and in Oceania, in Singapore, Perth, Melbourne, Sale, Brisbane, Darwin, Sydney, Gladstone, Chinchilla, Malaysia, also China, South Korea, India, Ghana, Nigeria, Angola and South Africa.
Enermech avoided strike off action by Companies House after filing delayed UK accounts for 2014.
Recommended for you
