The boss of Aberdeenshire-based EnerQuip has warned the region could be facing an “exodus” unless the UK and Scottish governments “rejig” their thinking.
Andrew Robins fears companies could move to Norway or Romania to capture the market there.
The managing director said past and present governments have done little to help the oil and gas sector.
He believes the loss of any companies would be damaging for not only the north-east economy but Scotland as a whole.
‘Exodus’ from Aberdeen
Andrew said: “All three governments that have had anything to do with policy have been less than helpful.
“The old UK government, new UK government and Scottish one.
“Unless they retrace their steps a little bit and rejig their thinking then there’ll be an exodus from Aberdeen.
“I really do believe that.
“I think the service companies in particular, who would be our customers here in Aberdeen, will move to Norway and Romania to capture the market there in the Black Sea and Caspian sea.
“It won’t be great for the north-east or Scottish economy.”
Last week Aberdeen was confirmed as the headquarters for GB Energy as Prime Minister Keir Starmer paid tribute to the “talents and skills of the working people of the Granite City”.
EnerQuip, based in Findon, near Portlethen, specialises in torque products and services.
Its innovative and much-in-demand mobile torque unit is at the heart of a growing product portfolio.
Strong turnover as business grows
Despite the warning, EnerQuip Limited has performed well in the last year.
It reached a turnover of £18.9 million in its accounts for the year ending December 31, 2023. This was compared to £12.3m in 2022.
The company made pre-tax profits of £3.8m in the financial period, up from £2.4m the previous year.
Andrew said: “It was a really strong year and everything has told us that this year is going to be equally strong or stronger.
“That’s been borne out. We’ll exceed the turnover from last year but we can see it levelling off.
“There’s a lot of uncertainty in the world.
“The US election is causing the big boys in the US to pause for thought to see what happens.
“There’s obviously instability there but the order book remains strong.
“July and August were consecutively the best months for quotes that we’ve ever done.
“Capital expenditure from the service companies has been quite limited and constrained this year.
“We’ve done well with the other smaller players picking up the pieces around that.
“It does look like there’ll be a big spend, subject to market conditions and geopolitical events next year.”
Acquisitions in future
The latest accounts have revealed staff numbers have grown from 51 in 2022 to 72 in 2023.
This led to staff costs increasing from £2.7m in 2022 to £3.5m last year.
Andrew said the firm will continue to hire throughout the year and is looking to expand operations in Australia as well as making acquisitions to strengthen.
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