Global Energy Group said yesterday it was nearing the end of a further £20million investment in developing the Nigg Yard on the Cromarty Firth into a “world-class” port.
The Inverness and Aberdeen-based energy service firm also revealed it was targeting the Mediterranean, Middle East and Asia for new business to offset an expected downturn in the UK due to the recent slump in crude oil prices.
Global, which employs more than said a damaging impact on some of its operations was unavoidable but past experience of difficult market conditions showed new opportunities could flourish.
Announcing a big jump in profits and turnover for the year to March 31, Global said “considerable” growth at its marine and logistics division was primarily influenced by the availability of the Nigg Yard following the completion of phase one development.
The work paved the way for a number of rig/marine projects and the first floating, production, storage and offloading vessel to be modified in the Nigg dry dock, it added.
Chief executive Iain MacGregor said: “The completion of phase one of the Nigg Yard successfully yielded the revenue growth expected from the previous year.
“The availability of one of Europe’s largest and best-equipped dry docks is a significant asset to the group but, admittedly, is linked to a cyclical and seasonal business.”
Revealing the extra spending at Nigg, which is on top of the £37million investment signalled by the firm early last year, Mr MacGregor said “The securing of large rig and vessel projects is determined by legislative maintenance cycles, with fewer visible in the market in 2014/15.
“The group will invest £20million during 2014/15 to complete the second phase of development at the yard.
“This will turn the existing quayside facilities into a world-class port with deep-water berths. Such an investment will grow our logistics offering and help the company secure further projects in both the renewables and the oil and gas markets.
“These revenues are more predictable and long-term in nature, which combined with dry dock projects will create a more sustainable offering.”
Pre-tax profits for the year to March 31 were up by 51% to £41.58million, compared with £27.58million a year earlier.
Turnover for the latest period came in at £471.8million, which was up from £357.9million previously and represents a third consecutive year of sales growth.
Global, which is currently at loggerheads with Cromarty Firth Port Authority, over its plans for a new port at Nigg, said the stronger figures were driven by organic growth and reflected “the increasing maturity of the group.”
It added: “It also reflects the market’s positive reaction to a value proposition that can reduce risks in construction and provide more effective maintenance to critical assets.”
Mr MacGregor, whose father, Roy MacGregor owns the business, with substantial backing from Japanese investors, said strong oil prices and high levels of industry investment in the North Sea had a positive impact on its process equipment business during the year.
But he added: “ The current oil price crash will certainly be damaging to many businesses in the UK service sector and we will experience that in some parts of our group.
“However, in the same way as our business flourished in Australia during difficult market conditions, we expect something similar will happen here in the North Sea.
“To offset an expected downturn in UK projects due to the oil price, the group will further develop its international marine business, targeting acquisitions and joint ventures in the Mediterranean, Middle East and Asia to widen our international reach.
“We will also be targeting acquisitions to further diversify the groups’ markets in our process and equipment business, with a focus on building on our nuclear, petrochemical and water focused revenues.”
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