Thursday 1 October 2020

Pipeline specialist STATS posts $7m profit

London, UK, 21 days ago

Pipeline technology specialist STATS (UK) Ltd generated revenues of £39.1 million ($50.63 million) and earnings before interest, taxes, depreciation and amortisation (Ebitda) of £5.6 million $7.25 million) according to its annual accounts as on December 31, 2019.
Despite the impact of the Covid-19 pandemic and the fall in the price of oil, STATS said it was confident its 2020 performance and activity levels would be broadly consistent with those of 2019.
In the Middle East, STATS continued to secure contracts in their core markets of the UAE, Oman, Kuwait, Qatar and Saudi Arabia, a statement said. 
Milestone achievements in 2019 included completing a key project in Saudi Arabia utilising the company’s patented BISEP technology, establishing an operational facility in Muscat to support work with Petroleum Development Oman, and successfully delivering a technically challenging large-diameter isolation project in Qatar. 
STATS also completed subsea hot tapping workscopes in the UAE and in Egypt, and towards the end of 2019 the company’s Abu Dhabi branch moved to new larger facilities.
While revenues dropped by 10%, down from £43.4 million, the accounts noted that the largest ever contract completed by STATS, for a major Abu Dhabi client, had made a significant contribution to its 2018 results.
Based in Kintore, near Aberdeen, UK, STATS’ principal activity is the provision of pressurised pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries.
The company’s success in recent years of internationalising its business continued, with 85% of revenues derived from projects executed outside of the UK, a rise of 5% on 2018.
Elsewhere, STATS increased its market presence in the US where revenues grew by 176% on the previous year, and relocated to larger facilities in Canada which allowed the ramping up of the in-house design and manufacture of pipeline fittings for North American clients. 
Diversification away from a rental-only model of the company’s patented isolation tools to include product sales had found particular success in Canada and Iraq, while there was strong demand for the group’s Type Approved mechanical pipe connectors in the UK oil and gas sector. In addition, a Memorandum of Understanding with Sakhalin Energy Investment Company and INTRA was signed in 2019 for a long-term frame agreement covering isolation works in Russia.
STATS Group Chief Executive Officer, Leigh Howarth, said: “As Covid-19 evolved into a global pandemic in the early part of 2020, this had an impact on our trading performance. Not surprisingly, several significant contracts which had been a long time in planning were postponed by our clients until later this year or 2021 but on the positive side there is a healthy programme of work ahead of us.
“The response from our staff across all our global locations in dealing with the changed environment was outstanding. The introduction of new working practices has allowed us to continue delivering our services and, encouragingly, secure new work. As a result, and notwithstanding the impact of Covid-19 and the resulting lower demand for oil and the subsequent drop in price, we are optimistic that activity levels in 2020 will be broadly consistent with those of 2019.”
The group’s pre-tax profits for 2019 were £0.2 million compared to £2.5 million in 2018, while Ebitda earnings decreased from £7.6 million in 2018 to £5.6 million. Investment continues in to research and development activities relating to STATS’s proprietary technology products and to secure patents and trademarks where appropriate.--TradeArabia News Service


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