AN ABERDEENSHIRE subsea specialist is offsetting the downturn in the oil and gas sector through diversification into renewables.
Mike Wilson, managing director of Ecosse Subsea Systems (ESS), said “a number” of traditional offshore projects have been cancelled since the crash in oil prices took hold last summer. This will squeeze profit margins in the year that just closed at the end of March, although turnover will increase.
“With a healthy balance sheet and debt-free status, we are in a strong position to counter the challenges facing the oil and gas industry while capitalising on new opportunities in other markets,” Wilson said.
New lines of work include a move during the past two years into renewables and interconnectors, which led to a surge in revenues and profits during the year to March 2014.
The accounts for that year, just published, show an 88 per cent rise in turnover to £15.6 million. Operating profit more than trebled to £3.4m, marking the company’s most successful year to date.
Headquartered in Banchory, ESS employs 70 people providing seabed clearance for cable and trenching projects.