Consistency in green energy policy-making is top of the 2023 wish list for Highland entrepreneur Roy MacGregor.
Speaking on the eve of his 70th birthday today, Mr MacGregor, said his Global Energy Group (GEG) was well-placed to take advantage of energy transition opportunities.
There is a “good dividend” awaiting the energy services company as it pursues more work in the renewables sector, he said.
But this depends on “consistency from Scottish and national (UK) politicians,” he added.
Roy MacGregor on green freeports
Mr MacGregor also expressed frustration over the delay to the announcement about Scottish green freeports.
GEG is one of the partners in Opportunity Cromarty Firth (OCF) – one of five consortia hoping to become one of two green freeports north of the border.
A decision was anticipated in the autumn but is not now expected until early 2023.
“The delay is frustrating, yes,” Mr MacGregor said, adding: “The politicians are probably trying to keep everybody happy. It is a very important decision for Scotland.”
GEG’s founder and chairman said he was “not against” the idea of three Scottish green freeports, instead of two.
OCF is facing strong competition from North East Scotland Green Freeport (Aberdeen and Peterhead), Orkney Green Freeport, Forth Green Freeport and Clyde Green Freeport.
Annual results
Meanwhile, GEG has said it is “on course to surpass pre-pandemic trading levels”.
The bullishness follows annual results showing a big jump in revenue.
Inverness-headquartered GEG employs more than 1,500 people.
It is the largest private employer in the Highlands and Islands and also a major employer in Aberdeen, where it owns and operates the Nord Centre at the harbour.
Accounts for GEG (Holdings) show revenue grew by 24% to £225 million during the year to March 2022.
But pre-tax profits fell more than 40% to £2.92m, impacted by costs from GEG vacating a fabrication facility in Aberdeen, an “onerous lease provision” and one-off charges linked to the group’s investment in Port of Nigg.
Discontinued operations as well as restructuring and reorganisation costs as GEG “shapes its operations to support current and future market conditions” saw adjusted earnings before interest, taxes, depreciation, and amortisation come in at £14m.
GEG hailed its results as a strong financial performance in an “ever-evolving energy landscape”.
Nuclear, offshore and onshore wind projects kept GEG busy during the year.
The company said its support for government energy security, decarbonisation and green policies boosted revenue.
© Supplied by Global Wind ProjectsSeaGreen revenue boost
The firm added: “Sustained growth in the renewables sector supporting major capex (capital expenditure) projects, including the SeaGreen wind project, as well as supporting oil and gas production maintenance efficiencies has allowed the group to stabilise its revenue base and profitability.”
These also helped the group to “retain a strong balance sheet to take advantage of future investment and growth opportunities”.
GEG said it continued to invest “significantly” during the period.
This included about 740ft of new quayside and general improvements at the group’s Port of Nigg facility in the Moray Firth.
The work at Nigg will help the wider group take advantage of the “future opportunities the energy sector is set to offer”, said GEG, which continues to focus on “ongoing strategic initiatives” at the port.
Offshore digital technologies are also expected to allow the group to play a major role in Scotland’s energy transition.
Mr MacGregor said: “We have built our diverse portfolio of companies in such a way that allow us to react quickly to market conditions – which has been invaluable as we deal with the impacts of the government’s energy policies and the changing demands of our customers.
“Our continued investment in people, our entrepreneurial culture, skills and experience have allowed us to identify opportunities to support the energy market.
“We are confident the business is positioned for future growth.”
Getting over Covid
Chief financial officer Gordon Farmer said the group had recovered well from the impact of the Covid pandemic and changing energy market dynamics.
Mr Farmer added: “We continue to invest capital organically and in growth opportunities to support our energy transition strategy and creating a sustainable revenue stream which will position the business for future growth.
“We are already seeing the impact of our investment decisions, with our March 2023 revenue forecasts on course to surpass pre-pandemic trading levels.”
GEG’s ultimate parent, GEG Capital Investments, saw sales grow nearly 34% to £289m during the year to March 2022.
GEG Capital Investments owns businesses including civil engineering and construction contractor Global Infrastructure and Capstone Construction, both based in the Highlands, and Glasgow-headquartered safety, environment and engineering consultancy Mabbett.
Its fast-growing recruitment empire takes in Inverness firms Global Highland and Be Personnel, Aberdeen company Cammach Bryant, and Aberdeen and Peterhead-based Genesis Personnel.
Mr MacGregor said: “GEG Capital Investments is also continuing to invest and grow at pace, with a number of the businesses able to complement GEG’s growth aspirations.”
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