More than 100 jobs to go as Aberdeen oil services company is dragged under by N. Sea slump

Jurassic-rig2Aberdeen-based Craigshaw Holdings Ltd – the holding company for Enterprise Engineering Services – has collapsed into Administration with the likely loss of 115 jobs as a result of crude oil slump.

 

Set up in 1966, EES has worked with a large number of oil and gas and utility clients over the course of its 50-year history.

Some industry observers have said that the N. Sea oil industry is now ‘teetering on the edge’ of a mountain of debt.

 

Due to the ‘sustained drop’ in the price of oil, the number of incoming orders at EES has significantly decreased, resulting in turnover levels falling from £23 million in 2014 to £17 million in 2015 – and with the declining trend continuing over recent months.

 

Resulting losses have caused significant cash flow problems ultimately leaving the directors with no option but to seek the appointment of administrators. 

 

At the time of appointment 108 people were employed by EES at the Aberdeen site, with a further seven employed at an additional facility in Caithness which EES acquired in 2013 after purchasing Mowat Technical and Design Services.

 

Following the appointment of Administrators, 58 staff have been made redundant (54 in Aberdeen and four in Caithness). A further 49 employees (46 in Aberdeen and three in Caithness) have been sent home pending clarification of ongoing customer requirements and will be advised of their position as soon as possible together with the remaining eight (all Aberdeen-based) who have been retained to assist the Joint Administrators.

 

The Joint Administrators are currently liaising with key customers on the completion of certain contracts and work in progress. As a priority, the Joint Administrators are also exploring whether a sale of EESL’s business, infrastructure and assets can be secured.

 

Blair Nimmo, Joint Administrator and Head of Restructuring for KPMG in the UK, said: “Enterprise Engineering Services Limited has a long history of servicing the energy industry across the UK but, like many businesses in the sector, it has been negatively impacted by the low oil price and the consequent reduction in upstream activity.

 

“However, the company has a strong reputation in its markets, together with an asset base which will be of interest to other operators, principally comprising its forward order book, two property facilities, and a variety of machinery in addition to Intellectual Property.

 

“We will do everything we can to procure a buyer.”

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