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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

Delta "T" Hooks for Offshore Customer

Gaining further ground into the offshore crane market, Delta "T" Systems supplied Cranston Eagle hooks to crane manufacturer Appleton Marine, Inc.   These cranes

Finance

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

Mitsubishi Exits Cruise Business; Books $357m Loss

Mitsubishi Heavy Industries, Ltd. (MHI) announced its decision to book an extraordinary loss from its cruise ship business in the company's consolidated financial

Energy

Arctic Oil: Bourbon to Enter Arctic Market in 2016

Bourbon plans to enter the growing Arctic Offshore market in 2016 with a new Anchor Handling Tug Supply (AHTS) vessel built by the Vard shipyard. This AHTS (Anchor

Libyan Government: Ports, Oil Fields Safe

Libyan oil ports and fields are safe and under government control, the country's interior minister said on Friday after visting the eastern Brega port. "This

China to Import 335 MT of Naphtha, Wants More

China is set to import more than 335,000 tonnes of naphtha and diesel, rare moves for the world's no. 2 oil consumer given it has been self-sufficient at meeting domestic oil product demand,

News

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all

Wärtsilä, Diesel United Renew Pact

Wärtsilä and Diesel United Ltd in Japan have signed a ten-year renewal of their co-operation agreement for the sale, manufacturing and servicing of Wärtsilä low-speed marine engines.

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3976 sec (3 req/sec)