Annual report reveals 'excellent result' for the Port of Cromarty Firth despite Covid-19 impact
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The Port of Cromarty Firth has sailed through the challenges of the Covid-19 crisis to achieve pre-tax profits of almost £5 million and a turnover of £12.7 million during 2020.
While the lockdown restrictions impacted a number of key sectors, the Port continued to operate round the clock and generated a surplus (profit before tax) figure of £4.8 million.
As a Trust Port, as in all previous years when a surplus is recorded, this money will be reinvested into future development for the benefit of the local area and its stakeholders.
During 2020, and as part of the Port’s Business Continuity Plan, a wide range of strict health and safety control measures were implemented throughout the business, allowing its activities – and those in the Cromarty Firth – to be completed safely. The adoption of innovative technology also accelerated, a vital move that will continue to play at key role in all future management and operations.
A large share of this turnover was a direct result of growth in the renewable energy sector as well as the effect of Covid-19 on the oil and gas industry, which sparked a huge drop in oil prices and led to many offshore projects being postponed or cancelled.
This had a knock-on effect on rig utilisation and resulted in an increase in the number of rigs anchoring in the Cromarty Firth’s deep, sheltered waters. The increase in both renewable energy activities and rigs being anchored in the Firth presented opportunities for local supply chain businesses in marshalling and assembly as well as in inspection, repair and maintenance.
This extra work was welcomed by the business community surrounding the Port, who were impacted by the cancellation of the entire 2020 cruise season due to the voluntary suspension of sailings by cruise operators.
This loss of cruise business was felt more acutely as it followed a record-breaking 2019 season valued at £18 million to the regional economy. However, thanks to the Port’s diversification plan, other pipelines of activity grew substantially during 2020.
Most notable among them was renewables, which year on year has continued to grow, and last year generated a record 43 per cent of the Port’s income.
The Port’s new £31 million laydown facilities in Invergordon, and Global Energy Group’s Nigg Energy Park, supported the construction of the 950MW Moray East Offshore Windfarm, which got fully underway in 2020.
The Port also made investments which will allow it to take advantage of a sustainable pipeline of opportunities for the region and supply chain through offshore wind, floating offshore wind and green hydrogen. The Port benfits from close proximity to 14 of 15 sites identified for development in ScotWind, the latest Scottish offshore wind seabed leasing round.
It also took a leading role in two initiatives dedicated to helping Scotland reach net zero emissions targets by 2045. First was the North Scotland Hydrogen programme, whose aim is the creation of a green hydrogen hub in the Cromarty Firth. Green hydrogen is expected to be a key renewable fuel source in the decarbonisation of energy for industrial, transport and domestic applications.
The Port is also a founding member of Opportunity Cromarty Firth, collaborating with partners from industry, academia and the public sector to establish a strategic renewable energy hub in the Cromarty Firth as well as a Highland Powerhouse of research and development into renewables.
These collaborations would be enhanced if the Cromarty Firth is successful in the upcoming freeport/green port initiatives soon to be launched by the UK and Scottish Governments.
This focus on diversification, collaboration and partnership both in industry and the community saw the Port achieve a double recognition from its peers by winning in two categories at the 2020 Maritime UK Awards, scooping both the business of the year and coastal powerhouse titles.
Chief executive Bob Buskie said: “Last year was a year like no other experienced at the Port, so we are extremely pleased to be able to record such excellent results for 2020. Our ability to achieve a turnover and surplus like this is testament to the hard work, dedication and flexibility not only of our staff but of our wider local supply chain and stakeholders.
“Much of the upturn in activity was due to the number of rigs moored and sheltering in the Firth, but this activity was very much a reflection of how Covid-19 turned the economy on its head, as was the complete absence of cruise ships from the Cromarty Firth.
“A fairer reflection of our long-term economic focus can be seen in our ongoing diversification plan, principally in renewables which provided a bigger share of our turnover than ever before. The opportunities presented by offshore wind, floating offshore wind and green hydrogen to the Cromarty Firth, the Highlands and Scotland are very significant and will bring skilled jobs and high-wage opportunities to the region.
“We are anticipating our substantial track record in renewables will continue to grow, through collaboration with like-minded businesses and organisations. This will again be driven by our passionate and hard-working staff, whose tireless efforts aim to bring prosperity to the Port and make significant contributions to the local and regional economy.”
Speaking on behalf of the board of directors, chairman Roger Eddie, said: “2020 was an extraordinary year and one of the most testing which the country has faced in recent memory with the Covid-19 pandemic and Brexit impacting on every part of our society.
“I want to express my heartfelt thanks to the Port’s staff for their hard work and commitment, which has kept the Port of Cromarty Firth open and operational 24/7 throughout one of the most challenging periods in the Port’s history.
“Our 2020 results demonstrate the strength and resilience of our operations, as well as that of the port’s community and stakeholders. despite the impact of Covid-19 and the uncertainty relating to the end of the Brexit transition period, Port trade levels remained healthy.
"This has allowed us to maintain the growth of recent years and deliver significant benefits for the region.”
