North-east oil and gas services firm Altus Intervention UK (AIUK) has reported a slide into the red and lower turnover, but also a strong performance in its core North Sea business.
AIUK, which is part of Norwegian company Qinterra Group, attributed weaker financial results for 2016 to a “material downturn” in west Africa and the completion of a large onshore process installation project in 2016.
Pre-tax losses totalled £454,000, compared with profits of nearly £2.5million the year before, while revenue during the latest period slumped by 23% to £76.2million.
The Portlethen-based well-intervention specialist described last year’s overall performance as “resilient” in challenging circumstances amid the global oil and gas downturn.
AIUK president Garry Michie added: “Our team has been relentless in supporting existing and new clients in difficult market conditions.
“We have adapted our working practices to this new market environment, ensuring our ability to continue to deliver a safe, efficient and valuable service.”
Qinterra Group chief executive Age Landro said AIUK’s strength in performance delivery and cost control was reflected in “many scope extensions and new contract additions in the last 18 months”.
AIUK was launched in 2001 as QServ by the entrepreneurial Dreelan brothers. It is backed by Swedish private-equity fund EQT.
North Sea business accounts for more than 80% of the company’s revenues.
The firm employs more than 550 people, while the wider Altus Intervention business – operating in Denmark, the UK and west Africa – has more than 1,000 on its payroll.
AIUK was part of the well intervention services operation acquired by EQT from Norway’s Aker Solutions, in a deal worth more than £400million, in January 2014.
The acquired business was then rebranded under the name Qinterra, comprising Altus Intervention and an international well intervention technology subsidiary, Qinterra Technologies, which employs 140 people across locations shared with its sister firm, as well as operations in Canada, the US, the Middle East and Malaysia.