PSN, the global energy service business, has reported strong revenue and earnings growth in 2007; better than targets set when it was formed two years ago in a £140million management buyout from KBR.
The Aberdeen-based company said yesterday it had performed well ahead of expectations and continued to invest in long-term sustainable growth.
Highlights in 2007 included a first acquisition, with a second following early this year, a continued high level of repeat business, and new joint ventures in Russia and Kazakhstan.
Duncan Skinner, PSN’s chief financial officer, said: “Our 2007 revenue totalled £600million with earnings before interest, tax, depreciation and amortisation (ebitda) of £34.65million.
“This represents an increase on the 2006 12-month equivalent revenue of 3% and on ebitda of 12%. This continues well ahead of the targets that we set for performance post-MBO.”
During 2007, PSN made the £15million acquisition of a complementary business, Grasso in the Gulf of Mexico, wholly funded by cash reserves, significantly extending the group’s capability in North America. Earlier this year, it made its first move into western Canada when it bought Tartan Engineering of Calgary in a deal thought to be worth £10million.
Mr Skinner said: “International expansion is underpinned by our ability to win repeat business in all operating territories, including the North Sea.
“In the current financial year, we have already entered new territories, executed additional joint ventures and are working on further acquisitions, which will drive the continued growth of the business.
“The near to mid-term prospects are therefore extremely good, supported by an order book of £1billion as at the end of 2007.”
He added that PSN was looking at “another couple of modest strategic acquisitions” this year in line with its international expansion strategy, although its primary focus remained on organic, sustainable growth.
Mr Skinner said PSN was also continuing to evaluate options that would be of benefit to the business, one of which may be a flotation.
PSN has a global network of more than 8,500 people in 20 countries across five continents. Around 3,000 of its workforce are in Scotland.
Chief executive Bob Keiller, who led the MBO, has already said his aim is to increase PSN’s workforce to more than 10,000 by 2010.