Aberdeen-based mechanical engineering group EnerMech said its 2016 revenues rose by almost £10 million to £263.7 million on the previous year — and forecast that 2017 trading will increase by nearly £100 million to around £360 million.
Annual accounts to December 2016 for privately-held EnerMech also show earnings before interest, tax, depreciation and amortization (EBITDA) rose by £4.4 million to £24.8 million in the same period and it is expected 2017 EBITDA will increase further to around £42 million.
Accounts filed at Companies House show EnerMech’s UK division recorded revenues of £128.3 million, up from £123.7 million the previous year, while EBITDA more than doubled to £14.4 million.
EnerMech employs 3,000 staff across 40 locations in the UK, Europe, the Middle East, Caspian, Asia, Australia and the Americas, and has evolved in to one of the world’s leading integrated engineering contractors.
It continuing to serve the energy sector but has expanded its service offering into new sectors, including renewables, LNG, defence, power, infrastructure and petrochemicals.
The acquisition in January of electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US, expanded the group’s capability beyond its original mechanical focus and has provided EnerMech with access to large scale infrastructure projects and entry to the metals and utility sectors.
EnerMech chief executive officer, Doug Duguid, said: “We remain focussed on increasing our presence in international markets, strengthening our reputation in our core energy sectors, while building on the significant inroads we have made in to other important markets such as infrastructure and utilities.
“We have focussed on developing fresh ways of working and introduced innovative new business models for clients who are seeking a different approach in light of the changed oil and gas environment.
“Prudent cost savings, a strategic expansion into new sectors, and carefully targeted acquisitions, underpin what is an encouraging set of financial results.
“EnerMech is constantly evolving and our approach to providing truly integrated engineering services means we can remain agile and responsive to client requirements, which puts us in a strong position to maximise growth potential in the years ahead.”
EnerMech said it is enjoying significant growth in its US business, buoyed by success on LNG pre-commissioning contracts and in the petrochemicals sector, and it expects 2017 revenue in the Americas to double to more than £60 million and staff numbers to increase from 150 to around 400.
The company recently announced it had secured a five-year contract to provide hose and hose fittings supply and services for Shell’s Prelude FNLG facility in Western Australia.
In May it revealed it had formed a joint venture with Iraq’s Khudairi Group to target the country’s re-emerging oil, gas and infrastructure sectors, and in April it announced it had won £40 million worth of contracts in the Caspian region, providing cranes and lifting, process, pipeline and umbilicals, valves, training and industrial services to a range of international operators.