The boss of a leading North Sea company has been handed a £2million bonus.
Energy services giant Hunting enjoyed rising profits during 2013 – despite being hit by a slowdown in UK projects.
And figures published yesterday revealed that the firm’s chief executive – Dennis Proctor – was paid just under £2.7million for the year.
On top of his £460,000 salary, he was given a £390,000 bonus for 2013.
His pay packet was given a further boost by a long-term incentive plan, which has paid out £1.6million for his performance over the last three years.
Fellow executive Peter Rose was paid nearly £875,000 for the year, including a bonus pot of almost £540,000.
Details of the payouts have emerged in the firm’s annual report, which followed the announcement of its 2013 results earlier this month.
The group said project deferrals and a lower rig count in the North Sea had subdued its European results, although increased profit from its US operations had made up for the decline.
The London-based firm, which makes and distributes oil and gas extraction tools and products, saw pre-tax profits rise from £76million in 2012 to £80.7million for last year.
Revenues also rose slightly, up 2% to £797million, but revenues for European projects were down 18% as rig maintenance programmes and deferred project spending into 2014 hit contracts.
Rig activity more than halved for the firm, which started 2013 with 22 rigs.
“With contracts to provide support for nine of these rigs, the facilities were prepared for high production levels and supported by higher inventories,” the company noted. “The rig activity declined to 10, with exploration wells drilled at the lowest level since 1965, and profits fell to half of expectations.
“Drilling activity levels have recovered and expectations are for a return to 2012 results.”
The company said it now expected single-digit growth for North Sea projects over the next year, with new sales appointments for Europe to try to drive further opportunities for the region.
However, increased activity in the Gulf of Mexico and an stronger move into the US shale gas market offered better results for the company.
“While the group experienced a number of trading disappointments during 2013, including customers unwinding inventories and project deferrals, other areas of the group delivered an excellent performance,” Mr Proctor said, announcing the annual results.
The results, and the directors’ remuneration, will go before the firm’s shareholders at its AGM in London on April 16.