Energy Cranes International (ECI), the Aberdeen-based lifting service, fluid-power and pipelay-system contractor, highlighted challenging trading conditions in 2009 as it unveiled annual results yesterday.
It said this year had been characterised by depressed commodity prices, pressure on margins, fluctuating exchange rates and significant regional variations in activity.
ECI incorporates Sparrows Offshore, Aberdeen Hydraulics and Baricon Systems. The group employs nearly 1,600 people worldwide: 930 through the Aberdeen headquarters, 370 in America and 250 in the Middle East and Asia-Pacific.
Doug Sedge, the former European vice-president and general manager at US oil service company Tesco Corporation, joined ECI as chief executive just this week.
The group said earnings before interest, tax, depreciation and amortisation (ebitda) in 2008 came in at £15.9million on sales of £154million. Accounts for the previous year showed ebitda of £12.2million from sales of £114million.
The comparison is based on consolidated like-for-like figures, because ECI was acquired by directors and UK merchant bank Close Brothers Private Equity in March 2008. It was previously owned by private-equity firm LMS Capital.
ECI’s report on 2008 highlighted fluctuations in both global energy prices and currency exchange rates which significantly affected markets during the year but also provided new opportunities.
It said bosses were particularly pleased by the successful integration and continued growth of businesses acquired late in 2007 and early last year.
These include Aberdeen Hydraulics and Baricon Systems plus Houston-based Marine and Mainland.
ECI opened new service delivery centres in Angola, Norway and Singapore last year, adding to operating bases in Aberdeen, Abu Dhabi, Australia, Azerbaijan, Brazil, Indonesia and America.
It also expanded operations at Great Yarmouth and in the Netherlands.
In addition, investment was directed at growing the group’s offshore crane rental business.
Looking to the year ahead, chief financial officer Adrian Bannister said: “Our capital investment programme in 2009 broadly matches that in 2008, while employee numbers have been sustained or increased in all our operating regions worldwide.
“Like all energy service contractors, we are working both smarter and harder in these challenging times but we expect to return increased sales for 2009 in the region of £167million.”