EnerMech Sets $452 Million 2014 Sales Target

Posted by Michelle Howard
Thursday, November 21, 2013
Valves repair, manufacturing and servicing is one of EnerMech’s six global business lines.

Oil and gas services group EnerMech Ltd. has predicted 2014 turnover will increase to more than £280 million ($452m), a jump of £80 million ($129m) on the current year’s forecast and double the £144 million ($232m) revenue recorded in its 2012 annual accounts.

The Aberdeen-based company’s 2012 group accounts showed an £11 million ($17.7m) profit (EBITDA) on revenue which grew 41% from £102 million ($165m), and it expects 2013 EBITDA to break the £20 million ($32m) barrier.

The mechanical engineering specialist reported that in the same period its U.K. domestic revenues topped £100 million ($161m) for the first time (£101 million), up 38% from £73 million ($118), and EBITDA increased from £1.9 million ($3.1m) to £5.3 million ($8.6m).

Managing director Doug Duguid said performance in traditionally mature markets such as the U.K. showed 32% year on year growth, with non-U..K. revenues increasing by over 56% with Asia and Norway performing particularly well.

Strong trading in the current year, the acquisition of three strategic businesses and expanding its international presence to over 30 facilities in 18 countries, will strengthen EnerMech’s 2013 financial performance and push revenues over £200 million ($333m), with an expected £80 million ($129m)uplift in 2014.

The company last month announced it had secured a £90 million ($145m)funding package by establishing a ‘banking club’ including Bank of Scotland, DNB and HSBC, and that a combination of further investment in infrastructure and acquisitions would create 700 new jobs.

In the Director’s Report for the 2012 accounts, recently filed at Companies House, Doug Duguid, said: “The impact of global recession, a trend towards commodity pricing within certain sectors and targeting new geographies did not impact the group’s gross profit margin, which grew from 22.4% in 2011 to 22.9% for the current year [2012].

“This is particularly pleasing given the significant investment during the year in additional resources and operational overhead required to establish a solid base for future operations, predominantly within the Africa and Americas regions and within the Valves business line.

“Growth in EBITDA of over 31% from £8.3 million in 2011 to £11 million demonstrates the improvement in performance achieved [in 2012]. The directors believe that the continuing investment in top quality regional and functional management, along with investment in the competence and development of EnerMech employees, will provide a solid base from which to deliver further global expansion.”

In October 2012, EnerMech secured a further £15 million investment from original investors Lime Rock Partners, which enabled the group to complete the acquisition of Water Weights International SA Pty Limited in South Africa, a key element in the strategy to offer EnerMech’s range of services across the African continent.

With over 30 bases in key oil and gas regions, EnerMech employs 1800 staff and provides six main business lines to the energy and power industries – Cranes and Lifting; Valves; Hydraulic products and services, Process, Pipeline and Umbilicals (PPU); Equipment Rental, and Training services.

In January, EnerMech acquired Melbourne-based ValveTech Engineering which provides servicing, engineering, modification, testing and supply of valves to the Australian oil and gas, power generation, petrochemical and refining industries.

In July the acquisition of Vicon Services group and the subsequent opening of two new facilities extended EnerMech’s footprint in Australia to eight locations. At the same time, the addition of Great Yarmouth and Aberdeen based Total Reclaim Systems Limited (TRS) to the EnerMech group, increased the range of drilling support services the company can provide to offshore drilling rigs and production platforms.

Other key developments in EnerMech’s growth included an increased presence across West Africa, the opening of larger premises in Singapore, opening a second Norwegian base in Bergen, and establishing facilities in Mumbai and Kakinada in India, and in Mexico where the company recently secured its first contracts.

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

PMSC Approved to Supply Armed Guards on French Ships

Aspida is the first PMSC to be permanently approved by CNAPS to provide armed guards onboard French flagged vessels.   Maritime security firm Aspida informs that as of June 12,

Maersk Returns to the Port of Baltimore

Maryland Lt. Governor Boyd Rutherford, along with congressional, state and local officials, officially welcomed Denmark-based Maersk Line, part of the Maersk Group

BMT Awarded Port Geographe Coastal Engineering Contract

BMT JFA Consultants (BMT), a subsidiary of BMT Group,  has been awarded a contract by the Western Australian Department of Transport (DoT) to provide services as


Container Equipment Costs at Record Low

Low material costs and stable demand has driven the price of new container equipment down to record lows where it is forecast to stay, according to the latest edition

KPA: Striking Mombasa Port Workers Must Return by Friday

The Kenya Ports Authority said on Thursday striking workers at the Mombasa port should resume work by Friday morning or lose their jobs, and that normal activities

Qatar Navigation Absorbs Balance of SocGen Gasships

Qatar Navigation (Milaha) said on Thursday its unit Qatar Shipping Company had acquired the remaining 60 percent interest in two firms which own Liquefied Natural


China's Navy holds Missile Combat Resupply Drill

China's navy held its first drill simulating the resupply of missiles in a combat environment in the Yellow Sea, the Defence Ministry said on Thursday, the latest

Qatar Navigation Absorbs Balance of SocGen Gasships

Qatar Navigation (Milaha) said on Thursday its unit Qatar Shipping Company had acquired the remaining 60 percent interest in two firms which own Liquefied Natural

GasLog Partners To Buy Three Vessels

GasLog Partners LP and GasLog Ltd. announced today the closing of the Partnership’s acquisition from GasLog of 100% of the ownership interests in the entities


Austal Delivers 7th Cape Class Patrol Boat

Shipbuilder Austal Limited announced it has delivered Cape Wessel, the seventh of eight Cape Class patrol boats being supplied to Australian Border Force under a $330 million design,

Silversea Cruises Orders Luxury Ship from Fincantieri

Shipbuilder Fincantieri has received an order to build a new luxury cruise ship for client Silversea Cruises due for delivery in April 2017.    At 40,700 grt and accommodating 596 guests,

Latest LCS Completes US Navy Trials

Littoral Combat Ship 6 (LCS 6), the future USS Jackson, has completed U.S. Navy acceptance trials, shipbuilder Austal Limited announced.   The trials, the final milestone before delivery,

Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1989 sec (5 req/sec)