Global Energy Group (GEG) has outlined plans to capitalise on the energy transition after enjoying a period of growth within the business.
In its financial results for the period ending March 2020, the Aberdeen and Inverness based firm’s CEO Tim Cornelius stressed the need for investment in “new technologies, people and facilities”.
GEG posted pre-tax profits of £9.8 million for the financial year.
Revenue increased from £205m to £245m, while earnings before interest, tax, depreciation, and amortization (“EBITDA”) was £22.7m, a slight rise on 2019’s figure of £20.8m.
The firm put the strong financial performance down to contributions from the low-carbon sector and a series of strategic acquisitions.
Port of Nigg in the Cromarty Firth, which is owned and operated by GEG, also supported renewable energy projects such as the Beatrice and Moray East offshore wind farms during the period.
Roy MacGregor, GEG chairman, commented: “Our skills and experience have helped to establish the Port of Nigg as a hub for the booming Scottish and UK offshore renewables industry whilst continuing to service the broader energy sector as business rapidly transitions into a low and even net-zero carbon future.
“Our intent is to further expand our quayside capacity with the construction of an East Quay at The Port of Nigg this year, which will be capable of accommodating the size and specification of vessels required to support the ever increasing size of offshore wind turbines as well as preparing our facility to support the future needs of floating offshore wind projects. This investment will support an increase in marine traffic at the Port of Nigg.”
However, the Highland businessman is “under no illusion” about the challenges GEG has faced in the period immediately following its latest results.
Mr Macgregor said that while the board was “pleased to see growth within the business”, it is “very aware” of the effect Covid-19 is having on operations at GEG’s worksites, as well as across the wider supply chain.
He added: “We have built our portfolio of companies in such a way that allow us to react quickly to market conditions which has been invaluable as we deal with the impacts of the COVID19 pandemic and the changing demands of our customers.”
Despite the pandemic, GEG has enjoyed a number of significant successes in the last year, specifically in the renewables space.
Meanwhile, multi-million pound works to extend the quayside at the facility by more than 700ft are expected to get underway next month.
Mr Cornelius said: “From a business perspective, the energy transition is an unprecedented opportunity which we are embracing, however we need to continue to be prudent with respect to cost management to remain competitive.
“Investment in new technologies, people and facilities will be required to keep us at the forefront of the low carbon revolution and I am delighted to have the support of the chairman and the board to make these required investments in the year ahead.”