Aberdeen-based oil and gas service company ITS Group said yesterday it had recently signed contracts worth more than £12million, thanks to rising drilling activity across the world.
The drilling equipment and service firm said it had agreed deals in Latin America, the Middle East and Asia-Pacific in recent months. ITS, which operates in 18 countries, said it expected 2012 to be better than previous years thanks to increasing rig counts, especially in America.
Chief executive Jeff Corray said: “Market conditions during the downturn dictated that we have had to focus on the prudent management of our assets and overheads, but with opportunities before us we are confident the group will build on 2011 and see the business emerge with improving returns on capital.
“We have seen utilisation improve steadily over the last 12 months, but while equipment capacity levels – particularly in international markets – remain as they are, pricing improvements will be more challenging and therefore managing our operations efficiently is critical.”
ITS also published its annual results for 2010 yesterday and said the recession in the previous year had affected its performance.
Earnings before interest, taxation, depreciation and amortisation (ebitda) were £21.2million, compared with £27million the previous year, despite turnover rising 5% to £85million.
Mr Corray said that, while 2010 was a challenging year, ITS had returned to growth in 2011 with both turnover and ebitda up by about 20% year-on-year.
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