Aberdeen’s Craig Group has halted investment in new ships and ROVs as it as it battens down hatches to weather the industry downturn.
The family-owned oil services and shipping group said capital investment reached £36.5million in the year to the end of April 2015. In the same period, it enjoyed an 11% rise in profits.
But chairman and managing director, Douglas Craig, said its usual investment plans had been “overtaken” by the fall in oil prices which has battered firms operating in the north-sea.
Turnover at Craig Group, which includes its North Star Shipping division, rose 4% to £185.2million in the year, while pre-tax profits were £20.5million compared to £18.4million in 2014.
Mr Craig said: “These results are historic and have been overtaken by the subsequent decline in the oil price and its dramatic impact on the industry as a whole.
“Over the last decade we have invested our profits in new vessels but have, like many other oilfield services businesses, halted further investment and are totally focused on meeting our customers’ demands for improved efficiency and cost-effectiveness without compromising on quality and safety.”
The capital investment was spent on the continued modernisation of its fleet of emergency response and rescue vessels. Three new emergency response and rescue vessels were delivered within this financial year with a further three vessels to be delivered in 2016.
All told, since 2003, Craig Group has invested a total of £350million in 26 new vessels for North Star Shipping. Despite the huge outlay, the group has operated a policy of low debt gearing.
The privately owned business, whose core activities are the provision of offshore support, ROV survey, emergency response and rescue vessels (ERRVs) and oilfield procurement, employs 1,100 people, around 900 of whom are mariners crewing the group’s fleet of vessels.
The Craig Group operates in Europe, Africa, Middle-east and the US in the areas of offshore support, ROV survey, emergency response and rescue vessels, oilfield procurement services and leisure.
Recommended for you
