Lloyd’s Register to trim inspection services amid ‘repositioning’ process

Lloyd's Register news
Lloyd's Register news

Lloyd’s Register (LR) will scale back its inspection services as part of a wider effort to “reposition” the professional services firm for the energy transition.

David Clark, recently appointed as LR’s new global energy director, is leading the reshaping process.

Formerly of Aker Solutions, Mr Clark said LR would continue to offer inspection services across the group.

But the company is “pulling away from smaller, niche elements”, including asset integrity inspection services.

Mr Clark said that service line had become “commoditised” as end users increasingly look for the “lowest cost provider”.

LR will pull out of those areas and focus on its strengths.

“We will keep our focus on the more complex capabilities customers come to us for,” said Mr Clark, who also had spells at Wood and Schlumberger.

The decision will put up to 80 office and site-based roles at risk in the UK, according to Mr Clark.

The firm would not say how many Aberdeen-based staff members would be affected.

LR has 16 UK offices.

Yesterday’s announcement covered the first phase of LR’s new global growth strategy for its energy business.

Mr Clark said LR’s “unique capability” and involvement throughout the asset lifecycle had attracted him to the company.

LR has vowed to retain its broad range of offerings while focusing its technical consultative services in existing and new geographical markets.

David Clark

“Our new strategy moves our portfolio away from markets that have become commoditised and consequently we will not offer all the services that we have historically,” Mr Clark said.

“We are adopting an approach that leverages the depth of our technical expertise and embraces digital and commercial innovation to provide business-focused solutions.

“For our clients, this means we will be better placed to help them maximise efficiency gains, manage operational performance, control their cost base and improve how risk is managed.”

LR intends to play a big role in helping clients reduce their carbon footprint, and ensuring sustainable production in the UK North Sea.

Mr Clark said the firm’s knowledge of regulations and expertise in the field of assurance would be valuable as more renewable energy systems and new technologies are introduced and integrated.

“Continued diversification is key for our growth and to meet the challenges of a shifting energy mix,” he said.

“As LR further extends its footprint in the renewables sector, we will apply our understanding of complex regulatory environments from multiple sectors to help our clients with the advancement and integration of their energy development, storage and distribution projects.”

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