Waste-management giant Augean said yesterday that contract wins for its North Sea energy service arm contributed to a strong first half performance for the group.
Aberdeen-based Augean North Sea Services (ANSS) sealed a number of deals in June and July, including a first contract for the disposal of naturally occurring radioactive material that builds up on offshore drilling equipment.
The group’s Radioactive Waste Services (RWS) division will work with ANSS on the contract, which was agreed with an unspecified major operator.
Simon Gibb, managing director of ANSS, said the contract shows his division has been in “growth mode” in the first six months of the year, “bucking the trend” amid the energy sector downturn.
Mr Gibb declined to provide more information on the contract wins.
ANSS, a joint venture between London-listed Augean and Scomi Oiltools, was set up about three years ago to serve the North Sea oil and gas industry.
The division’s Granite City facilities include its head office in Bridge of Don and a facility on the harbour’s Pocra Quay for treating waste materials left over from drilling.
It also has a drilling waste processing plant in Lerwick, Shetland.
Parent company Augean said it expects underlying pre-tax profits to be in line with market expectations.
The group’s energy and construction wing enjoyed growth as the amount of construction soil being sent to landfills went up, but its industry and infrastructure branch’s profitability stayed half against the first half of 2014.
Stewart Davies, chief executive officer of Augean, said: “In the first six months of 2015 we have seen momentum and traction from the group’s strategy as we continue to strengthen our position in specialist waste markets.
“The board expects a strong trading performance from the group overall to be reflected in growth in earnings and cash flow compared to the first half of 2014.
“Overall, we remain confident in our position to deliver further sustainable growth for shareholders.”
Yorkshire-based Augean will publish its first half results in September.
Shares in the group were untraded on the London stock exchange yesterday, having last traded at 54p.
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