Aberdeen-based oil service company Sparrows Group said yesterday it had won contracts worth more than £190million over the past three months.
The specialist in offshore lifting and mechanical handling services to the energy industry said the extra work would secure 134 existing jobs on and offshore, while 54 new positions had already been created and more were likely to follow.
Sparrows’ new contracts include North Sea deals with Shell, CNR International, ConocoPhillips, Perenco and Wood Group.
The firm has also signed or renewed agreements to work with BP in Angola and CNR in Gabon and Cote d’Ivoire.
Its new European and African contracts, worth a combined £150million, will be managed from Sparrows’ operating base in Aberdeen.
The company has also won orders and contracts worth an additional £40million in the US, Middle East and Asia.
Sparrows said the new business followed “excellent” provisional results for 2012, with like-for-like revenue up 10% on the year before and earnings from continuing operations up by 19%. Profits growth came largely from efficiencies and increased overseas activities, it added.
Chief executive Doug Sedge said: “We will be reporting robust results for 2012 later this year and, with these latest contract wins, are well on course to deliver exceptional results for 2013. We have a strong reputation for delivering on our promises and this is underlined by the amount of renewals we are securing.”
The largest single win among the new contracts is the renewal of a deal to deliver crane and lifting services on all Shell installations in the UK and Dutch sectors of the North Sea.
Sparrows said the five-year Shell deal came with the option of two one-year extensions and continued an unbroken record of service on the installations going back to 1976.
The work for CNR in the North Sea covers five platforms and requires Sparrows to deliver crane operation and maintenance services, including onshore engineering support, to the first just four weeks after the initial signing. Crews on all five CNR platforms are expected to be up and running 10 days later.
Sparrows employs 1,750 people in 19 locations globally. Turnover at the group in 2011 was £172million, compared with £149.5million the year before.
Operating profits in 2011 were £10.6million, up from £5.9million, while earnings before interest, taxation, depreciation and amortisation (ebitda) rose by nearly £3million to £17.5million.
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