PSL Energy Services, the north-east firm acquired by US energy service giant Halliburton for £128million in 2007, has reported pre-tax losses of £21.7million for last year.
The latest figure was revealed in accounts released by Companies House yesterday. It had previously posted pre-tax profits of £5.83million for 2006.
Portlethen-based PSL saw turnover drop to £71.3million last year from £74.8million during 2006.
A directors’ report with the accounts said its losses in 2007 were the result of lower turnover, increases in depreciation, significant investment in equipment and higher provisions related to a contract dispute.
PSL said it was making the appropriate investment and taking action to reverse its fortunes, adding: “Demand for the company’s products and services remains high, supported by continuing global demand for oil and gas.”
The company employed 734 people, on average, last year – compared with just 562 in 2006 – and awarded its best-paid director emoluments and pension benefits totalling £135,000, which compares with the £294,000 package the top earner got in 2006.
Halliburton’s acquisition of PSL – completed in August 2007 – came just four years after the north-east firm, formerly PSL Holdings, was bought out of receivership through a £14million management buyout.