Marine service group James Fisher and Sons said yesterday its offshore oil division, which includes operations in the north-east, had shown good resilience in a challenging economic climate.
Fisher, whose services include ship-to-ship oil transfers, said the niche markets served by its offshore energy arm meant its activities were largely unaffected by oil price volatility and well placed for growth.
Chairman Tim Harris said: “The recovery in the price of oil and its vital role in the world economy suggests that the market sector remains more attractive than most, with good long-term growth potential.”
Fisher’s offshore oil arm includes Dyce-firm Pumptools, Inverurie-based consultant Buchan Technical Services, Fisher Offshore, of Oldmeldrum, and the north-east unit of Norwegian subsidiary Scan Tech. Announcing first-half results yesterday, Fisher said revenue, profits and margins in the division remained steady overall.
This was compared with an “exceptionally strong” first six months of 2008.
Revenue and profits from operations in the Norwegian sector, new oil provinces outside the North Sea and at RMS Pumptools, however, were all up year-on-year helping to keep divisional profits flat at £5.8million.
Fisher said: “This division has demonstrated good resilience despite the well publicised drop in the oil price and we remain positive about its prospects.”
Pre-tax profits across the group, which employs about 1,600 people, were up by 18.2% at £13million.
Fisher also achieved double-digit growth in revenue, up by 13.9% at £130million.
Its specialist technical division, which includes Aberdeen-based measurement-instrument manufacturer JCM Scotload, had an “extremely strong” first six months of 2009.
Revenue at this arm was up by 38.9% year-on-year to £50.1million, with profits increasing by £3.8million to £7.9million.
Fisher said its marine oil operations were affected by a combination of a cargo shortfall and a weaker spot market. It added: “Little activity can be anticipated in the second half and until economic activity begins to recover.”
Profits from the marine oil business collapsed to £200,000 from £2.7million a year earlier.
Defence work boosted revenue at the group by £19.5million, up by 13.7% on a year earlier, but operational “teething problems” and other factors led to profits at this division falling by £700,000 to £1.9million.
Earlier this month, Fisher snapped up MB Faber in a deal worth £5.25million.
Chief executive Nick Fisher told the Press and Journal the firm’s acquisition strategy had been put on hold for a while amid the recession but it was now looking for suitable targets again.
Recommended for you
