Hazardous waste management company Augean said its North Sea services subsidiary had “moved up the supply chain” in 2018.
Yorkshire-headquartered Augean said the division was dealing directly with oil and gas operators and top-tier customers more often.
The subsidiary − Augean North Sea Services (ANSS) − is also profiting from an uptick in decommissioning work in the UK Continental Shelf.
ANSS was launched in 2012 and has operations in Aberdeen, Dundee, Great Yarmouth and Lerwick.
Announcing its full-year results, Augean said revenues for ANSS rose by 19% to £21.7 million last year, on the back of new contracts in industrial services and waste management.
Adjusted operating profits totaled £2.1m in 2018, up from £700,000 a year earlier, as ANSS lowered costs and picked up more decommissioning work, offsetting a dip in drilling volumes.
ANSS’s facility at the Port of Dundee for managing waste from the decommissioning of oil and gas infrastructure is now fully up and running.
At the end of 2018, the company reached a “significant milestone” when it clinched a cleaning and waste disposal contract with oil major Shell for the Curlew floating production, storage and offloading (FPSO) vessel.
Curlew will be taken to Turkey for scrapping once ANSS finishes work on the FPSO in Dundee.
Augean is targeting further growth in the North Sea decommissioning market.
Group pre-tax profits more than doubled, to £10.6m, while revenues went up by 19% to £79.7m.