Climate pressure is a factor for Global Energy Group
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A LEADING energy firm has conceded its core market of oil and gas is under increased pressure from the public due to climate change.
Inverness-headquartered Global Energy Group made the point in its latest accounts which showed turnover and pre-tax profit both increased by more than £10 million for the year ended March 31, 2019.
Filing as GEG (Holdings), the international company
is also involved in other sectors such as renewables, nuclear, utilities and petrochemical.
A strategic report accompanying the firm’s figures stated: “The group’s core market of oil and gas is still in a period of low capital spend and under increased societal pressure with climate change challenges and carbon capture initiatives key to the future market’s success.
“GEG has seen some shoots of recovery with an increase in both marine and subsea activity but does anticipate the market to remain more challenged in future years without increased exploration spend.
“The current oil price, reduced capital spend and uncertainty has proved to be a catalyst for offshore asset owners to challenge conventional methods of maintaining their ageing infrastructure.
“The group experienced a positive response to its innovative and high-performance methods of delivering critical repairs and maintenance and has benefited from opex spend and seen opportunity for growth in this space.
“Encouragingly, the Port of Nigg has now established itself as Scotland’s offshore renewables hub as well as a multi-energy user site with the completion of the Beatrice Offshore Wind Farm staging port project. The port now provides a full service offering including logistics and fabrication services and supports both major renewables projects as well as traditional oil and gas activities.
“Further investment in the yard is being considered in the future to support the ever-evolving energy market.”
Turnover increased from £289,197,000 in 2018 to £300,070,000 last year.
For the same period, pre-tax profit moved from £6,621,000 to £16,965,000.
It came after a significant restructuring exercise which resulted in a number of business units being disposed of as part of a share swap and refinancing move.
The average number of employees increased from 1547 in 2018 to 1882 last year, while staff costs increased from £73,755,000 to £87,857,000.
