International energy service company Hunting said yesterday that the Aberdeen area was a continuing focus for investment in its business, and that more jobs would be created as it expanded.
Chief executive Dennis Proctor said the company, which employs about 280 in the north-east at tubular operations at Portlethen and Montrose and at the Hunting Cromar wireline and pressure-control business in the Granite City, would invest about £20million to move from four plants to two larger plants, one at Portlethen and one at Fordoun.
Mr Proctor said the north-east moves would be completed by early 2011, but it was too early to say how many jobs would be added.
He also said that despite continuing uncertainty in the economic environment, Hunting remained well positioned for the “inevitable global recovery”, with a diversified product offering and geographic revenue mix. He added: “We have successfully executed two acquisitions which are already contributing to our results.
“With an extremely robust balance sheet we continue to evaluate further acquisition opportunities, while also focusing on costs and production efficiencies.
“These combined efforts provide us with a confident long-term outlook.”
Mr Proctor had been planning four acquisitions after selling Hunting’s Canadian oil and gas midstream business Gibson Energy in December 2008 for more than £500million.
He said yesterday that, with the acquisitions of National Coupling Company in the US for about £38million and PTSMB in Indonesia for £6.56million completed this year, a third purchase was moving towards completion.
He added that the fourth, a well-intervention and rental business with operations in Aberdeen and the Middle East would not now happen, although Hunting was still looking at four or five more possible buys. With net cash in hand of £387.6million at June 30, Hunting is well placed to add to its portfolio of businesses globally.
Mr Proctor said the company had achieved good success in the North Sea, which had better prospects than North America, where there had been a 60% decline in drilling rig activity in the first half of 2009 compared with a 10% decline worldwide.
Hunting reported pre-tax profits from continuing operations of £26.5million, up 24% year-on-year.
Revenue for the period was £219.8million, up 9% on the year before.
The company’s UK-listed shares gained 6% to 484.9p.