The Press and Journal (Inverness, Highlands, and Islands)
‘Negative results’ across all divisions at National Oilwell Varco UK
Two North Sea oil and gas firms have revealed the effects of the downturn in their latest accounts.
National Oilwell Varco UK, part of a multinational offshore oil and gas services firm headquarted in Houston, said the oil and gas downturn has had a “negative impact” across all the its divisions, according to accounts filed at Companies House.
The firm, which includes trading divisions such as Elmar, Well Site Services, Coil Services (North Sea), Hydra Rig and Procon Engineering, saw turnover drop 20% to £396million to the year end of 2015. But pre-tax profits rose 38% to £237million due to “increased income from investments”.
In its strategic report for the year it said: “Trading activities were impacted by the decline in the oil price and subsequent weakening demand for oil and gas equipment, parts and services.
“The directors recognise that it was a difficult business environment during 2015andcontinues tobeso. Operators and drilling contractors are scaling back their operations, which has a knock-on effect in the supply chain where the company is placed. Pricing pressure from our customers has seen margins reduced.”
It added: “With the different divisions of the company operating at different points of the oil and gas drilling cycle the directors believe the company is very well placed to take advantage of the opportunities that will arise when a recovery in the
The firm employed 1,754 people in the business, oil price occurs.” down from 1,932 in the prior year.
Meanwhile, Perenco UK, a privately-owned FrenchAnglo oil and gas operator, b o o ke d a dr a m a t i c £345million loss in 2015, comparedto a£19.4million pre-tax profit in 2014.
Much if this was down to booking a £232million impairment of its assets.
But the firm, which operates gas fields in the southern North Sea, was able to take advantage of deferred tax credits for corporation and petroleum revenue tax, reducing the overall loss to £47million.
Its turnover fell 20% in the year to £564million.
When Iona Energy went into administration last year, Perenco acquired further interest in the Trent andTyne gas fields. Also last year, thecompany said its licence for the Beacon field, which it acquired from BP as part of a larger in £456million deal in 2011 was “uneconomic”. The write down of the value of Beaconandanother licence, Durango, was £48million.
“Our trading activities were impacted upon by the decline in the oil price”