W.S. Atkins said yesterday its Middle East oil and gas business had grown beyond expectations, helping to offset challenging conditions for its energy arm in the UK and North America.
The global engineering and project management consultancy joined the throng of oil and gas market players laying bare the knock-on effect of reduced crude prices.
Atkins, which is part of the joint-venture behind the design of the new Aberdeen bypass road, said its energy division had a difficult first half.
Posting a 38% rise in profits to £53.8million for the six months to September 30, from £39million a year earlier, the company reported good performances in its nuclear, power and renewables businesses.
But it said there was a mixed picture for oil and gas, adding: “The challenging conditions in the UK and North America … continued in the period.
“In line with the industry as a whole, we remain cautious and continue to monitor productivity closely.
“Our oil and gas business in the Middle East has grown beyond our expectations, delivering design services for Qatar Petroleum and a steady stream of smaller design and consultancy projects for the ADNOC (Abu Dhabi National Oil Company) group.”
Atkins said its position in the UK nuclear new-build market remained strong, however, and it welcomed EDF Energy’s plans for the new Hinkley Point C power station in Somerset.
“We see significant opportunities in North America and other markets outside the UK and continue to expand the international portfolio of our nuclear business,” it added.
The company said it continued to expand its portfolio of work in the international liquefied natural gas market, while it had “further strengthened” its position in UK offshore wind-energy.
Atkins was recently appointed by Seaway Heavy Lifting to design the jacket foundations for the 664 megawatt Beatrice windfarm project in the Outer Moray Firth.
European business delivered “significantly improved” first half results, with revenue rising by more than £30million to £458.7million.
In the UK, where Atkins employs more than 9,000 people, including a sizeable presence in Aberdeen, revenue lifted by 7% to £426.4million.
Total revenue across the group, which employs nearly 18,500 people globally, was 8.8% higher at £904.6million.
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