Global Energy Group profits fall on restructuring

Inverness-based Global Energy Group has seen sales and profit drop in its latest full-year results, but said its performance was resilient given market difficulties and its restructuring in the period.

Global Energy Group chairman Roy MacGregor. Picture: Jeff Holmes/SNS Group

The business, which has more than 3,000 staff globally, said that in the year to March, turnover fell to £292 million, compared to £376m in the previous 12 months.

The latest figure was attributed to a “robust diversification policy that covers non-oil and gas infrastructure”. Core earnings, including one-off restructuring costs, reached £23.7m, down from £37.6m.

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Group chairman Roy MacGregor said: “Like many companies in the north and east of Scotland, we are affected by spending decisions linked to the oil price. We were able to successfully downsize the business during the year and achieved a profit despite restructuring costs. Cash generated during the period was allocated to the further geographic and market diversification of the group.

“This included growth in the Australian [liquefied natural gas], Middle East marine, UK chemical sector and the UK renewable energy markets.

MacGregor, who is also chairman of Ross County Football Club, added that the energy business has “mixed feelings about the immediate future”, expecting capital expenditure-linked business in the UK oil and gas market to pose challenges.

The group was founded in 2005 and in 2011 completed the purchase of the former North Sea Oil fabrication facility at Nigg, on the Cromarty Firth, saying this is one of the largest facilities of its kind in Europe.