RESILIENCE

Stats UK, the Aberdeenshire pipeline technology company, has booked a sharp rise in profits despite flat turnover, new accounts reveal.

The results for 2017 show that despite the continued impact of low oil and gas prices, demand for the group’s isolation and intervention services remained solid. The firm benefited from an upturn in project awards from new clients both in the UK and overseas.

Operational milestones during the year included delivering more than 90 major isolation projects using the firm’s intervention technologies.

More than 70 per cent of overall revenue was generated from activities outside the UK, including gaining market traction in the US, Abu Dhabi and New Zealand, and building on the firm’s strong position in Canada and Malaysia.

In addition, the group strengthened its position in China with the delivery of a major subsea intervention project, as well as securing a three-year isolation services contract in Oman with Petroleum Development Oman.

0 The Aberdeenshire group is headed by its chief executive Leigh Howarth

LEIGH HOWARTH, CEO

The rise in underlying trading profit to £4.3 million from £2.6m in 2016 was a result of a cost reduction exercise started in June 2016 and “stringent cost controls” throughout last year. After taxation, the group suffered a loss of £878,000 compared to a wider £1.3m shortfall in 2016.

Revenues were maintained at about £30m during the year to 31 December.

Stats group chief executive Leigh Howarth said: “Taken against a background of the well documented long-term impact of lower energy prices, our 2017 results are encouraging. By focusing on cost management and increasing efficiencies across all our activities, we have delivered an excellent increase in our earnings.

“With a combination of improving oil and gas prices and the inroads we have made into new international markets, we expect demand for our products and services to significantly improve in 2018.

“We are collaborating with like-minded innovative partners,

“Taken against a background of the well documented long-term impact of lower energy prices, our 2017 results are encouraging.”