Aker Qserv, the Portlethen-based company whose principal activity is oil field services both onshore and offshore in the UK and globally, says in its annual report for 2009 the year was challenging.
Directors say in their report, just released by Companies House, that the downturn in the oil and gas sector both in the North Sea and internationally resulted in extreme pressure on margins both from client cost reduction initiatives and competition for reduced work. They say despite tough markets turnover rose by 6% on the year before to £72.85million although profit margins were eroded. Pre-tax profits for 2009 were £6.49million, down from £9.41million the previous year.
The directors say UK North Sea operations continue to be the company’s largest operating region and revenue was maintained in the area despite a difficult start to the year.
They add: “International activity was also affected by the downturn but our internationalisation strategy bore fruit and our overseas business increased by 36% during the year, so that non-North Sea business now accounts for 25% of revenue. While revenue in well intervention services remained stable, a satisfactory result in the prevailing climate, we were particularly pleased with progress in process and pipeline services.” On future developments they say Aker Qserv is expanding services available from Aker Well Services into its UK portfolio of services and continuing to expand its range of process and pipeline services by investing in additional equipment and personnel.
Director Ciaran Dreelan said yesterday: “We see continued growth and we have maintained our activity locally and seen some increase in international activity. Next year should see a pick-up across the whole oil and gas sector.”
The report also notes the company’s payroll grew significantly during the year, with the average number of employees rising by 118 to 545, mainly in process and pipeline and also internationally.
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