Kintore-based pipeline engineering company STATS (UK) Ltd says it has transformed its client base, with more than 75% of revenue now attributed to international contracts.
Despite challenging oil and gas market conditions, the firm is predicting sales in 2017 will rise beyond the £30 million reported in 2016.
The company’s latest accounts show substantial savings to its cost base resulted in a strong performance in the second half of 2016. Earnings before interest tax depreciation and amortisation (EBITDA) of £2.7 million during the period were up £2 million on the first six months.
Turnover at the the company in the year to December 31 was £30 million, compared to £35.7 million the previous year. Pre-tax losses increased to £1.4 million from £0.9 in 2015.
STATS chief executive officer Leigh Howarth said the group performed well relative to many comparable oilfield service businesses, but acknowledged the continued impact of low oil prices on demand for the group’s services had affected trading results.
He said: “Group revenue for the year was £30 million and while this was down on the previous year we increased EBITDA by 10% to £3.4 million.
“This was partly attributable to foreign currency exchange gains following the UK’s decision to exit from the European Union, but also a result of a significant cost-reduction exercise in the UK which has positioned STATS as a leaner, more responsive and cost-effective oil and gas services provider.”
STATS specialises in pipeline testing, repair and integrity services. As well as its North-east base, the group operates from Kendal, in Cumbria, Canada, the USA, the Middle East and Malaysia.
Mr Howarth, who was appointed CEO in 2016, added: “In the last five years, we have made a concerted effort to penetrate key international oil and gas markets.
“With more than 75% of our contract work now derived from overseas, we believe this represents a great achievement for a Scottish-based engineering business.”
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