The Global Energy Group is eyeing up further international acquisitions following a second consecutive year of huge growth.
The Inverness and Aberdeen-based industrial firm released its 2012-13 financial statements yesterday – which showed sales were up 43% on last year.
Turnover grew from £250million to £358million to the year end March 2013, with earnings before interest, tax and depreciation at £34.5million, compared to £16.9million in 2011-12.
Last night the firm’s chief executive – Iain MacGregor – said increased capacity at Nigg Yard had helped the firm to a bumper year.
“There are two parts to the group, covering ‘operations & maintenance’ and ‘projects’ activities. We are pleased to see considerable growth in both of these areas – underpinned by different factors,” he said.
“The increased capacity of the Nigg Yard on the Cromarty Firth, in the north of Scotland, and a strengthening North Sea market has influenced strong organic growth in our ‘Projects Group’.
“A number of field-life extensions and new developments have ensured a steady flow of subsea projects and topside modifications for our fabrication business.
“The opening of the dry-dock at Nigg also increased the volume of rig/vessel projects attracted to the Cromarty Firth. The acquisitions of Ross-Shire Engineering and Prime Pumps also permitted entry to the onshore Utility and Power markets, widening the market and skill sets offered by the projects group.
“The targeted acquisitions of A&B Welding (UK) and Vertech (Australia) fuelled further growth in the group’s Operations and Maintenance offering during the year.”
Global’s strong performance was praised by Mitsui & Co, the Japanese corporation that took a 25% stake in the family-run business in 2012.
Mitsui’s Noboru Katsu said: “We joined forces with Global because we were impressed with their excellent management qualities, as well as their previous development and determination to achieve continuing sustainable growth in the UK and internationally.
“We have quickly established good working relationships with the company and are delighted to be part of its success and its ambitious plans for future growth.
“The results announced today are highly impressive and a testament to the skill and hard work of the whole Global team. We are confident this success will continue in the coming year.”
Looking ahead, Mr MacGregor said: “I expect a third year of 40%+ growth since we are already trading at the £500million level this year.
“The number of secured projects for the Nigg yard, including the first FPSO enhancement/life extension, will positively influence growth in our projects group in the current year.
“Acquisition growth in the latter part of the year will be focused in the operations and maintenance space, particularly in international markets. The directors expect to replicate the successful footprint established in Australia, but in other mature oil and gas basins.
“Enhancing our existing propositions in the USA (Gulf of Mexico) and Norway are expected to take priority in 2013-14 – as well as further growth in Australia.”