A fledgling plug and abandonment firm which recently received a £66 million investment has said it “expected” its £2.7m loss.
Well-Safe Solutions, which was established in 2017 by industry stalwarts Mark Patterson, Alasdair Locke and Paul Warwick, said the main purpose of the initial three years in business was to grow the brand name within the industry.
Accounts, filed with Companies House, show Well-Safe Solutions turned over £2.1m during the year ending March 2019 compared to £800,000 during their first eight months. Ebitda this year was a loss of £2.3m compared to £1.7m in 2018.The firm said the increases in both losses and turnover were as a result of reporting over a longer period.
Phil Milton, chief executive at the company, said in the director’s report: “Although the business has been making a loss in its first two reporting periods, the expectation from the shareholders was that this would be the case.
“The first three years of the business surrounds growing the brand name, explaining the Well-Safe offering to the market, building a highly experienced well P&A team and winning key contracts to establish Well-Safe as a key proposition for clients, as well as purchasing an offshore rig to be able to offer clients the full end-to-end decommissioning capability.
“The shareholders are committed to support and invest in Well-Safe during this growth phase of the business with the objective for the company to become a Tier 1 supplier to the exploration and production operating community.”
In October it was announced a private consortium of investors had acquired a major stake in the business to the tune of £66m.
At the same time Mr Patterson announced he had been bought out.
In June 2019, the company announced the award of a major contract to decommission up to 21 wells on the Schooner and Ketch fields in the UKCS, operated by DNO North Sea.
The offshore operations are planned to start towards the end of this year and last for around 24 months.