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Asco targets 50% jump in profits and more diversification

Boss Mike Pettigrew says future growth will be delivered alongside continued commitment to sustainability

Asco's quayside operations.
Asco's quayside operations in Aberdeen. Image: Big Partnership

Energy logistics firm Asco expects to grow profits by 50% over the next five years.

It has also predicted a majority of its returns will come from new energies by 2030.

Chief executive Mike Pettigrew said growth would be driven by the establishment of new sites and facilities in the UK and internationally.

The Aberdeen-headquartered company will increase its presence in the alternative energies space as it continues to support the traditional oil and gas industry, he added.

Moving into 2024 under new ownership is like getting a fresh start.”

Mike Pettigrew, chief executive, Asco

The growth targets follow a “defining” 12 months for the business.

Its acquisition from private equity firm Endless and Mr Pettigrew’s appointment as CEO have made 2023 a busy year.

And that has followed a return to the Black for the firm in 2022.

Figures revealed by The Press and Journal in October showed Asco notched up nearly £4. 6 million in pre-tax profits from continuing operations last year.

Revenue soared to about £638m, from around £419m previously.

Fresh start with new owners for Asco

A line-up of Asco’s HGV Fleet in Aberdeen.

Endless acquired the firm from a consortium of bosses and lenders for an undisclosed sum.

Mr Pettigrew, who recently took over the hotseat at Asco from Peter France, said the new owners wwere “fully supportive of investing in us, supporting our ambition and our growth”.

He added: “This has opened the doors to new opportunities.

“It has given us options to invest in and renew our capital fleet, invest in expansion into new ports and territories, and to potentially look at expansion through acquisition if there’s something that’s synergistic and makes sense as part of our growth.”

Asco chief executive, Mike Pettigrew.
Asco chief executive, Mike Pettigrew. Image: Big Partnership

The foundations for a bigger geographical footprint are already being laid, with new facilities now open in Port of Sunderland and Lowestoft in the UK.

Overseas, Asco has established new bases in Senegal and Suriname.

Talks over further expansion opportunities are taking place on four continents.

Asco headquarters at D2 Business Park in Dyce, Aberdeen.
Asco headquarters at D2 Business Park in Dyce, Aberdeen. Image: Big Partnership

Mr Pettigrew said: “Moving into 2024 under new ownership is like getting a fresh start.

“They didn’t buy us for what we’ve done; they bought us for what we can be and what they see in us. They support our ambition, and our hunger to grow and engage with new markets.

“We’re entering a new phase for the company, and growth is going to be at the heart of what we do in both existing and new markets.”

They didn’t buy us for what we’ve done; they bought us for what we can be and what they see in us.”

Asco’s CEO continued: “We need to optimise our operations, make sure we have invested in our technology; that we’re structured properly and that our people are focused on what’s important to the business.

“At the same time, we must ensure we don’t lose sight of our commitment to our three fundamental obsessions of, safety, service and sustainability.”

Sustainability targets

Asco provides logistics support for complex offshore assets all over the world.

“Our future must lie in new energies,” Mr Pettigrew said, adding: “That’s not just in offshore wind but other energy projects such as CCUS (carbon capture, utilisation and storage), hydrogen and ammonia, and future fuels like sustainable aviation fuel and e-methanol, which could potentially be used as a fuel for bunkering ships.”

Mr Pettigrew said future growth would be delivered alongside a continued commitment to sustainability, with the firm having already achieved environmental targets for 2024.

Asco operations at Albert Quay, Aberdeen. Image: Asco

He added: “Sustainability is one of our core obsessions and will remain so, wherever our aspirations for growth take us.

“We are committed to being net-zero, not just carbon neutral.

“That means, for example, every time we set up a new facility, wherever that may be, we will always look at how to do that in the most sustainable way.

Asco's Peterhead supply base.
Asco’s Peterhead supply base.

“Some of the countries we are moving into have no legislation governing sustainability or commitment or adherence to CO2 reduction policies. That doesn’t mean we have to operate like that, and we won’t. Our target will always be net-zero greenhouse gas emissions.

“We are looking forward to transformational times ahead. We are reinvigorating our business in tune with the paradigm shift in energy.

“It’s a hugely exciting time to be involved in the energy sector, and Asco will be a critical enabler in the transition.”

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