Profits slump by 59% at Scottish N. Sea recruitment firm

oil-worker-training-skills-general-photo-scotentProfits have slumped by more than half – 59% at an Inverness-based recruitment agency for offshore oil and gas workers as the industry shed thousands of jobs over the past two years since N. Sea crude oil price peaked at around $110-barrel.

Orion Engineering Services Ltd has reported a pre-tax profit for 2015 of £1.5 million, compared to £3.7 million the previous year.

Revenue fell by more than 13% from £392 million to £339 million.

To reduce its dependence on this sector, the company now aims to target the power generation and renewable energy sectors as well.

Meanwhile, Norwegian N. Sea offshore services provider Aker Solutions has warned that the outlook for oil services remains challenging and projects are being postponed across the industry.

Reporting a 13% fall in Q3 earnings, Aker said that there are ‘some signs’ of a recovery, primarily in the brownfield segment  amid expectations that oil prices will stabilize at a higher level in 2017.

Luis Araujo, chief executive, said: “Industry cost cuts are having an effect, with break-even costs coming down on projects, which may allow some major developments to be sanctioned in the next 12 months. Our greatest growth potential is outside of Norway, where the company has been expanding.”

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