Aberdeen drilling contractor KCA Deutag has taken a £20million hit over the past two years because of civil war in Libya.
The company had to shut down its operations and evacuate workers from the north African country as battles raged in the months leading up to the death of dictator Muammar Gaddafi in October 2011.
But one of the bosses of the international firm said yesterday its financial outlook was very encouraging after rising turnover and profits in 2012.
Accounts just published by Companies House revealed KCA faced £17.6million in costs in 2011 as civil unrest in Libya peaked and the firm evacuated expatriate workers.
A further £2.4million was shelled out last year due to ongoing standby and security costs, but the firm added: “During 2012 the situation in Libya stabilised and plans are in place to re-enter the country when appropriate.”
KCA said fleet reactivation in the country would be carefully considered and two of its rigs in the region were due to be operational this year.
Elsewhere, KCA said strong financial performance in the North Sea helped to boost performance last year.
Turnover was up nearly 20% to £1.1billion, while operating profits before exceptional items were up 18% to £29.4million. One-off items, including the Libya costs, dragged KCA’s final operating figure into the red, however, down to £60.7million of losses in 2012 compared with £340.4million profits in the previous 12 months.
The group’s exceptional items last year also included a £5.6million payment to the Crown Office and Procurator Fiscal Service’s civil recovery unit after an investigation into alleged irregularities on a contract revealed the firm profited from corrupt payments.
Chief financial officer Neil Gilchrist said yesterday KCA was going from strength to strength this year thanks to customers stepping up their operations in the North Sea and across the world, adding: “A recent example of this growth was the significant award earlier this week of a contract with Statoil for the management, operation and maintenance of two jackup rigs which will operate on the Norwegian continental shelf,” he said.