International oil services firm ITS Group announced yesterday big increases in turnover and profits following an improvement in market conditions.
Aberdeen-based ITS provides drilling equipment and services through a network of 29 facilities in 18 countries.
Turnover last year rose by 22% to £101.1million, while earnings before interest, taxation, depreciation and amortisation were up by 28% to £26.6million. Chief financial officer Scott Milne said that, after two years of challenging market conditions, improving activity levels had helped to stabilise operations and create an improved business environment.
“Lower utilisation and volatile pricing weighed heavily on our 2010 results. It is pleasing to see that 2011 saw more stable markets and a return to growth for ITS.
“Growth in international rig counts is eating into the capacity that exists within the service industry. As that narrows, we see an environment that will support a much-needed recovery and stability in pricing.”
ITS reported that increased activity with customers in the US, Mexico and the UK supported an uplift across the group.
Investment in new plant and equipment also continued, with capital expenditure of £12.9million in the year.
Mr Milne added: “It is pleasing to see continued investment at ITS and our strong market position taking advantage of improving activity levels.
“However, volatility in the global economy remains and we remain prudent in our approach to investment and control of overheads.”
ITS was established in 1986 and has around 1,300 staff – 75 of them in Aberdeen.
Chairman and founder Bob Kidd has also taken the role of chief executive after the departure earlier this year of Jeff Corray. Mr Corray said he felt it was time for something different.