International oilfield support services company Asco Group has reported “promising” prospects despite a widening of losses amid the North Sea downturn.
The Aberdeen firm, which employs more than 2,000 people globally, suffered pre-tax losses of nearly £29.5million last year.
Revenue slid by more than £53million to £711.9million as lower oil prices impacted on clients.
The latest losses follow a trading deficit of £5.3million in 2013, when the company generated revenue of £765.3million.
But the same accounts from Companies House highlight a small increase in earnings before interest, taxes, depreciation and amortisation (ebitda) from continuing operations.
Asco said ebitda rose to £38.6million in the latest period, from £37.7million previously, which was mainly due to the £15million acquisition early last year of a 60% stake in Western Australian logistics business Bonnie Rock Transport.
The figures coincide with a traumatic week for the firm, which suffered the loss of one of its drivers – Rimas Kuskys of Fraserburgh – in a fatal accident on the A90 Aberdeen to Ellon road near Balmedie.
In a report attached to the accounts, Asco chief executive Alan Brown said confidence in the oil and gas industry had been “severely dented” by the fall in oil prices.
He added: “This represents a major change from a period of several years where oil prices rarely fell below $100 a barrel.
“The impact on drilling activity, particularly in the North Sea, which has become an area of very high operating costs for our clients, is likely to be profound.”
Mr Brown, who took over the helm late last year after Derek Smith quit to “pursue other opportunities”, said Asco’s 2014 performance was held back by reduced margins in its fuels business and poor results for waste and inventory management operations.
He added: “Asco continues to hold over 80% of the O&G (oil and gas) supply base market in Scotland and we continue to be by some way the most geographically diverse of supply base operators, whether in support of onshore or offshore installations.
“We expect volumes to reduce in the second half or 2015 in our core markets where they have ot done so already. Anticipated drilling activity is significantly down.
“Nevertheless, medium-term prospects for Asco look promising. We have won a number of significant contracts in the early part of this year, including BP, Shell and Statoil.”
Mr Brown said Asco was “hopeful” that improvements to quayside operations – Project Stride – would revolutionise vessel sharing and management in the North Sea and help to offset a downturn in activity for the group and its clients.
Asco is owned by its management and London-based private-equity investor Doughty Hanson.