Airpac Bukom Oilfield Services grew profits and revenue during the year to March 31 despite an “increasingly challenging” trading climate, the Aberdeenshire firm’s owner said yesterday.
Reporting group results, equipment rental specialist Vp said its Kintore-based Airpac Bukom subsidiary increased operating profits to £2.8million, from £2million the year before, while revenue rose by £1.3million to £21.5million.
Vp said: “The division’s result was achieved against an increasingly challenging market environment, driven by the deterioration in the price of oil in the latter part of 2014. As a consequence, revenues in the second half softened.”
But liquefied natural gas (LNG) projects continued to offer opportunities in the Asia Pacific region, said Vp, highlighting Airpac Bukom’s recent involvement in two major LNG contracts in Australia.
Vp said rentals to the well testing market generally suffered in the second half as the impact of lower oil prices took hold.
It added: “Airpac Bukom secured a number of long-term contracts which have provided some resilience and the division has maintained a presence in some early production projects in the Middle East.
“However, most geographical regions were affected by reductions in capital investment by the major oil companies.”
Airpac Bukom spent £5.3million on updating its rental fleet during 2014/15, the group said.
Originally set up to support North Sea exploration in the mid 1970s, Airpac Bukom has since developed a network of six international sales, distribution and servicing facilities.
As well as Kintore, it has operations in Great Yarmouth, Singapore, Australia, the Middle East and the Americas supporting clients.
Harrogate-based Vp posted pre-tax profits of just over £25million, ip from £18.9million previously, with revenue increasing by more than £22million to £205.6million.
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