Multi-millionaire boss of Global Energy Group (GEG), Roy MacGregor, is targeting new nuclear power contracts as the UK government pushes ahead with plans for a £20 billion investment in the Sizewell C project in Suffolk.
The Inverness-based firm aims to win more work in UK nuclear following the completion of a recent fabrication contract on Hinkley Point in Somerset, a £48bn project that is similar in scope to Sizewell and which is set to start producing power in 2031 after several years of delay. Both are led by French energy firm EDF (PAR:EDF).
“The government has just given the go-ahead to Sizewell and we hope to be involved,” said MacGregor.
“It’s at early stages, but we are one of only two contractors that are able to do nuclear in the UK.”
The group’s parent company, Global Energy Capital Investments, posted pre-tax profits of £14.6 million in the year to March 31 2024, a significant slump from £21.5m in the 2023.
A large fall in turnover – from £369m in 2023 to £253.7m in 2024 – was put down to coming off of a “very busy financial year” in which the firm delivered the large-scale contract on Hinkley Point. The group also completed a significant marshalling project for Seaway7 on the 1GW SeaGreen Offshore Wind farm off the coast of Angus which was not replicated in its most recent financial year.
The group, which operates across a number of locations in Scotland, provides services across the renewable sector supporting offshore and onshore wind farms and energy grid upgrades while continuing to support oil and gas projects.
GEG said it had improved margins despite the drop in profits particularly in its logistics businesses, including crane services, wind projects and port services. These divisions supported wind projects in Scotland and Ireland, including EDF’s 450MW Neart na Gaoithe (NnG) offshore wind farm in Fife.
© Supplied by EDF RenewablesThe firm added its business targeting the North Sea oil and gas market continued to see a period of lower capital spend as “confidence in the sector remained challenged”.
The firm sold its stake in Aberdeen-based brownfield business Global E&C, now renamed as Nexos, to private equity firm SCF Partners in 2023, although it continued to support clients in the North Sea.
It added its income is now “weighted in favour” of low carbon energy work having been previously “more focused as a hydrocarbon services group”.
MacGregor, who founded GEG in 2005 and is also chairman of Ross County FC, said the group continues to lead the way in supporting the country’s energy transition.
He was positive about the group’s 2024 accounts and said it had been a “strong trading period” .
The 71-year-old entrepreneur said a revenue hike to £330m is forecast for GEG in 2025.
He said growth in turnover was already translating to growth in jobs this year.
This follows a 586 drop in total employees; from 2,307 last year, to 1,721 in 2024.
Renewables will benefit the Highlands
GEG continues to maximise the opportunities that freeport status brings to the Port of Nigg, which it owns and operates.
© Supplied by SSE RenewablesIt said Nigg has “firmly established itself as Scotland’s premier offshore marshalling renewables hub” having delivered seven projects to date including the 588MW Beatrice offshore wind farm, Ocean Wind’s Moray East (950MW) and West (882MW), in addition to SeaGreen.
Its infrastucture business which supports grid development also has a “healthy” pipeline following a year of growth.
“There is a momentum and that’s coming from offshore and it’s also coming from onshore, particularly from transmission,” said MacGregor.
“SSEN are spending £30bn on new infrastructure from Orkney, Shetland right down to Perth and that’s going to create a really prosperous time for this area.”
The chairman said a shift to renewables will benefit the Highlands community.
However, MacGregor said more action and support is needed from government to grow the renewable energy industry.
“They are asking for private sector investment, but they need to make sure the incentives are right when they do that,” he added.
“When oil and gas came at the beginning of the 70s it was very much with government and international support.
“Scotland has so much wind, we need to get a bit of help to pump prime the industry. That doesn’t necessarily mean money.”
MacGregor said it meant a great deal to him to support the Highland economy and that he was inspired his workforce.
“All the good ideas come from the bottom, not the top,” he said.
“As a Highland boy having exposure to a very vibrant oil and gas market and the international corporate world then coming back here, I see so much talent in Scotland; but we need to believe in ourselves.”
© Supplied by GEGThe business also made five acquisitions since its year end, including a majority stake in Invergordon-based inspection specialist, Aventus Energy, and consultancy, Crestwood Environmental.
GEG Capital chief financial officer Rory Mackenzie said: “Our acquisition strategy focuses on integrating complementary services that strengthen our ability to impact the UK’s net zero targets.”
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