Highland energy firm eyes up non-oil and gas work

ONE of the city’s biggest firms is changing its strategy because it expects a period of “low activity” in the oil and gas sector.

Global Energy Group is aiming to grow revenue in its other activities despite pre-tax profit increasing last year compared to the previous 12 months.

This comes after the firm – filing as GEG (Holdings) – saw turnover drop for the year ending March 31, 2018.

A directors’ report accompanying the Inverness-headquartered business’s latest accounts stated: “The directors continue to forecast a period of low activity in oil and gas as the market continues to recover.

“With this in mind, the directors have re-focused their strategy to grow market share, protect its core business as well as looking at opportunities for growth. The directors will continue to develop the revenue base in non-oil and gas markets such as petrochemical, renewables and utilities.

“This strategy is designed to enable the group to be robust through the downturn and able to grow sustainably on a strengthening market.”

Pre-tax profit increased from £4,300,000 in 2017 to £4,886,000 last year. For the same period, turnover dropped from £305,238,000 to £289,197,000.

A strategic report alongside the figures stated: “The group’s core market – oil and gas – is still in recovery mode, with GEG starting to see shoots of recovery with an increase in marine and subsea activity.

“The current oil price, reduced capital spend and uncertainty has proved to be a catalyst for offshore asset owners to challenge conventional methods of maintaining their ageing infrastructure. The group experienced a positive response to its innovative and high performance methods of delivering critical repairs and maintenance and has benefited from opex spend.”

The firm’s average number of employees dropped from 3500 in 2017 to 3325 last year, while staff costs fell from £86,981,000 to £73,755,000.

Source: Highland-News