Peterson Offshore squeezes out a 0.5% profit on £200m of North Sea turnover

Global energy logistics provider Peterson Offshore made a profit of less than half a per cent (0.45%) on nearly £200 million of North Sea revenue last year.

In 2016, Peterson Group increased investment in assets to £3.8 million –  including a new port crane, trucks and trailers in Aberdeen, while its third harbour crane being is built this month in the city.

The company also invested in a new ERP system which is now fully implemented and which has allowed it to consolidate and simplify our back office processes, improve service – and reduce cost.

Yet North Sea revenue was down on 2015 by 5% at £197 million, generating profit after tax this year (2016) of £0.9 million –  down by £3.5 million on 2015.

And despite global investment in oil exploration and production plummeting by 40% over the two years ending 2016, Peterson’s payroll increased by more than 20% to more than 1,000 workers.

Erwin Kooij, Peterson Group Chief Executive, commented: “These results reflect the on going reduction in activity in the region and the impact of the tougher pricing environment in 2016. 

“But we remain fully aligned with our customers looking to improve efficiency and we believe our delivery focused approach and innovative solutions are well placed to address the operational challenges our customers are facing in this tough environment.

Erwin Kooij
Erwin Kooij

“And despite these market conditions, we successfully retained existing contracts with CNR, BP, ENI, Siemens, Northlink and Centrica, and were awarded new contracts with ConocoPhillips, Statoil, Technip, Chrysaor, Dong, Dana, and Ithaca. 

“Developing our relationship built in the Southern North Sea, we were awarded a five-year integrated logistics contract with Shell for the Northern North Sea and now provide supply base and logistics operations support for all Shell’s North Sea assets.

“We have seen good activity and strong demand for our decommissioning services. Our purpose-built facilities at Dales Voe and Greenhead Base in Shetland are handling the decommissioning of the 12,000 tonne Buchan Alpha structure; and we are facilitating the decommissioning of the Leman platform in Great Yarmouth.”

3 Oct 2017

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