Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Spirits high at Hydrasun as new kit springs into life

(L-R) Craig Sangster, chief commercial officer, and Bob Drummond, CEO, at Hydrasun's base in Aberdeen.
(L-R) Craig Sangster, chief commercial officer, and Bob Drummond, CEO, at Hydrasun's base in Aberdeen.

Bosses at Hydrasun are in high spirits after investing in new kit, lifting profits and returning the firm’s order book to pre-downturn levels.

Hydrasun recently activated a £2.5 million machine for making larger subsea umbilicals and well intervention lines at its Aberdeen base.

And more good news could be on the way, as Hydrasun gears up for what is expected to be one of the busiest North Sea shutdown seasons in years.

The company provides integrated fluid transfer, power and control solutions to the energy, marine, renewables and petrochemicals industries.

Its chief executive, Bob Drummond, added the firm was making “good progress” to positon itself for the energy transition by delving into the hydrogen technology and carbon capture markets.

Improved market conditions and heightened demand for the firm’s services helped Hydrasun chalk up Ebitda of £6m for the year ended March 31, 2019, up by one third on the previous 12 months, according to accounts filed at Companies House.

Revenues jumped 21% year-on-year to £72.3m, while pre-tax profits climbed to £4.28m from £2.68m, as Hydrasun was buoyed by a £13m contract award for a gas project between Israel and Egypt.

Mr Drummond believes revenues for 2019-20 will grow by about 12% to £81m, partly thanks to an additional contract win in the Eastern Mediterranean worth £3-4m.

Deals worth about £3m in total have also been secured in Algeria and Egypt, as have orders worth £4m for umbilicals and hydraulic leads for major projects in the UK and abroad.

Mr Drummond said the newly installed equipment at Gateway Business Park, south Aberdeen, had significantly increased Hydrasun’s capacity.

The business has also invested about £400,000 in new manufacturing machinery for the automation of processes in its precision manufacturing division.

And hefty sums were spent on stock during the reporting period to meet demand and “offset Brexit risks”.

Hydrasun’s order book is currently worth around £23m, its highest total since September 2014, when the oil sector crashed, according to chief executive Bob Drummond.

He feels more confident that the company has emerged from the “trough of the downturn”, which Hydrasun experienced in 2017-18.

Mr Drummond said the firm was fortunate to have a broad customer base across multiple regions.

The company has boosted its headcount to keep up with demand, to 452 from 426 a year ago across bases in the UK, US, Netherlands, United Arab Emirates, Azerbaijan, Malta, Kazakhstan and Africa.

Chief commercial officer Craig Sangster said Hydrasun had started prioritising the recruitment and subsequent training of graduates, who tend to have fewer bad habits than more experienced workers on inflated salaries.

Hydrasun is also benefitting from an uptick in activity as operators look to tackle their maintenance backlogs.

The UK North Sea continues to be Hydrasun’s largest single region for revenue generation.

Mr Sangster said the planned Forties Pipeline System shutdown in summer 2020 could be lucrative for Hydrasun and the wider oilfield service sector.

FPS is expected to shut for about a month as part of a huge rejuvenation programme being carried out by operator Ineos.

Most companies whose platforms export via FPS will try to synchronise their own maintenance shutdowns during that period.

Mr Drummond said the 2020 shutdown season would be “one of the biggest” for many years.

Meanwhile, pre-tax losses at the Hydrasun’s London-registered parent company, Hydrasun Group Holdings (HGH), widened to £26.7m in 2018-19, from £24.7m a year earlier.

Funds managed by Investcorp Bank BSC are HGH’s majority shareholder, according to the accounts.

Recommended for you

Tags

More from Energy Voice

Latest Posts