Marine service group James Fisher and Sons said yesterday its offshore oil arm was seeing an increase in customer activity on both sides of the North Sea.
Fisher, which delivers a broad range of marine services from bases throughout the UK and in Scandinavia, reported underlying profits of £10.9million at the subsidiaries last year.
The figure was down from the £12.5million surplus seen in 2009 but business picked up in the second half of last year and Fisher said the division was now poised for a further boost from high oil prices.
Chairman Tim Harris said: “Activity is picking up in both the UK and Norwegian sectors of the North Sea, and our activities in the new emerging oil markets continue to grow fast and represent a higher proportion of our revenue each year.”
Fisher owns energy-service businesses including Dyce firm RMSpumptools, Inverurie-based consultant Buchan Technical Services, Oldmeldrum company Fisher Offshore and the Aberdeen unit of Scan Tech.
The group acquired Norwegian firm GMC Produkt for £11.3million last April and Aberdeen-based gas service firm RigCool for £4.4million in September in anticipation of growth at the offshore oil arm.
Yesterday’s results statement said: “Over 50% of RigCool’s business, which essentially consists of providing water-cooling systems to oil rigs, is in the Asia-Pacific region.
“Its activities are complementary to our existing Scan Tech Air supply operation, with which it is being merged to provide both management and marketing synergies.”
“Offshore is a sector in which our marine service skills are very relevant and we have done well by building up a strong market presence in certain specialist sectors.
“We shall continue to provide investment to support growth both organically and by bolt-on acquisitions.”
Looking to 2011 prospects, the Cumbria-based group said: “For offshore, an underlying increase in customer activity on both sides of the North Sea is a positive factor which should benefit the year as a whole.
“The prospects for further growth in the emerging markets remain good as this becomes increasingly the larger part of our offshore business.”
Fisher, which also has defence, marine oil and specialist technical divisions, posted underlying pre-tax profits of £27.1million for 2010, up 9% on the £24.8million seen in 2009.
Group revenue totalled £268.3million last year, compared with £249.6million previously, however, its shares slid 2.86% to 510p.