Global Energy Group posts sharp rise in profit and revenue Published duration 29 December 2014

image copyright Global Energy Group image caption Global Energy has completed the first stage of development of its Nigg yard in Easter Ross

Global Energy Group (GEG) has posted a big rise in revenue and profits - just weeks after confirming job losses at its fabrication yard on the Cromarty Firth in Easter Ross.

The energy services firm said turnover rose by 32% to £472m in the year to the end of March.

Profits also climbed from £18.8m to £28m.

GEG said revenues were boosted by the completion of the first phase of development of its facility at Nigg.

Earlier this month, the Inverness-based group confirmed that it had due to a downturn in oil and gas business.

Announcing its financial results, GEG said its marine and logistics business "experienced considerable growth" during the year, largely as a result of the Nigg yard becoming available.

Its successes included winning a number of rig/marine enhancement projects and modifying its first FPSO (floating production, storage and offloading) unit in the Nigg dry dock.

The group is now seeking to create a new harbour at Nigg, arguing that the facility is needed to support work at sites it operates at Nigg and Invergordon.

'World-class port'

GEG chief executive Iain MacGregor said: "The group will invest £20m during 2014/15 to complete the second phase of development at the yard.

"This will turn the existing quayside facilities into a world-class port with deep-water berths.

"Such an investment will grow our logistics offering and help the company secure further projects in both the renewables and the oil and gas markets.

"These revenues are more predictable and long-term in nature, which combined with dry dock projects will create a more sustainable offering."

He added: "To offset an expected downturn in UK projects (due to the oil price), the group will further develop its international marine business, targeting acquisitions and joint ventures in the Mediterranean, Middle East and Asia to widen our international reach.

"We will also be targeting acquisitions to further diversify the groups' markets in our process and equipment business, with a focus on building on our nuclear, petro-chemical and water-focused revenues."