Cost-cutting and overseas growth have helped push international oil and gas engineering company EnerMech back into the black.
Group revenue was also up during 2016 and the Aberdeen-based firm expects a further £100million boost to sales this year.
Revenue jumped by nearly £10million to £263.7million last year, generating pre-tax profits of £11.9million. This was after losses of £15million in 2015.
EnerMech said yesterday there was better to come in the 2017 figures, which were likely to show revenue across the group rocketing to about £360million.
It also said it was enjoying significant growth in its US business, buoyed by success on liquefied natural gas pre-commissioning contracts and in the petrochemicals sector.
Revenue from the Americas is expected to double to more than £60million this year, with workforce numbers across the Atlantic forecast to jump by 250 to around 400.
On the 2016 figures, chief executive Doug Duguid said: “Prudent cost savings, a strategic expansion into new sectors and carefully targeted acquisitions underpin what is an encouraging set of financial results.”
Accounts just lodged at Companies House show EnerMech’s UK division grew revenue by more than £4.5million to £128.3million last year, producing pre-tax profits of nearly £7.9million after losses of around £7.2million in 2015.
Chief financial officer Michael Buchan highlighted growing business in Kazakhstan and Azerbaijan, as well as new operations in Congo and Georgia. There was also a “significant beneficial financial impact” from salary and job cuts the year before, plus a “substantial” reduction in administrative costs. The overall performance was held back by losses at a joint-venture in Saudi Arabia. EnerMech, which specialises in integrated mechanical, electrical and instrumentation services, employs 3,000 people across 40 locations globally.
The group is diversifying and its record acquisition in January of electrical and instrumentation specialist EPS Group, with operations in Australia and the US, gave it access to large-scale infrastructure projects and entry into the metals and utility sectors. EnerMech is believed to have paid an eight-figure sum.
Recommended for you
Read the latest opinion pieces from our Energy Voice columnists
- Standardising specifications: a new approach
- OPINION: Victim’s son fears another Piper Alpha is ‘just around the corner’
- OPINION: Contractor lawyers in demand as firms reluctant to return to bloated workforces
- OPINION: Are Electric Vehicles changing BP’s business model?
- OPINION: Where helicopter safety is concerned, regulations matter