Drilling equipment sales and rental business Saltire Energy has maintained “consistent” performance in spite of the “unprecedented challenge” of the pandemic.
The Aberdeen Football Club shirt sponsor, which supplies drilling tools to customers in the offshore oil and gas industry, saw its turnover notched down slightly – to £21m from £21.9m, while pre-tax profits slid 14% to £5.5m in the year to end of June 2020.
The Portlethen-based company added in its statement that the the oil and gas sector remains “volatile” but insisted the “group is managing the market well and is able to adapt to these pressures”.
Overall the group remains confident in the oil and gas industry and managed to grow its North Sea business in the period. Turnover analysed by geographical market rose from £12.6m to £15.9m.
The company said its performance included a year-on-year increase in asset utilisation, which reflected “several significant contract wins” in 2020. It added that it maintained a “continuing strategy of profit reinvestment”.
The company said the value of its plant and machinery, which includes the equipment it rents to customers, was valued at £86m. This was down just £1m from 2019. The company said “These assets are continually refurbished to a very high standard on return from hire and this amongst other factors is reflected in their high residual values and low depreciation.”
The figures in the accounts reflect trading until the end of June 2020, although the summary and the accounts were signed last month.
It adds that “the directors are still confident in the group’s profitable business model and believed the group will continue to trade profitably in the future.”
Mike Loggie, chief executive, said: “Despite a decrease in profit during the last financial year, the maintenance of turnover and a strong operating profit are reflective of the market’s requirement for our availability of product, wide range of equipment and the genuinely peerless customer service for which we are renowned.
“Whilst the conditions of 2020 were undoubtedly an unprecedented challenge, our long-term commitment to the energy industry is reflected in our reinvestment of all profits back into the business, ensuring we are a position to continue trading profitably in the future.”
Since founding the business in 1986, Mr Loggie, who is 76, has successfully led the business through several ups and downs. The efforts have earned him several awards for his corporate leadership. In July 2016 he was crowned overall EY Scotland Entrepreneur of the Year, and in October of the same year won a top prize at EY’s UK-wide awards.
A month later he took the title of entrepreneur of the year at the Entrepreneurial Scotland Awards in Glasgow.
Saltire Energy added that it remains “passionate about supporting the communities in which it operates”, including its continued support of the “Saltire in the Community” initiative, which provides opportunities to disadvantaged children and young people both at home and overseas.
The company particularly likes to focus upon the positive impact of sport. In addition to its sponsorship of the Don’s strip – one of the longest running of such relationships in the club’s history, it recently also signed a new, three-year sponsorship agreement with Scottish Rugby. Saltire is now an official partner of SRU and supporter of youth rugby, with pitch side advertising on international matchdays at BT Murrayfield and Scotstoun Stadium for both Scotland’s men’s and women’s teams, promoting its brand across the globe, and with a focus on reaching Scots working in the oil industry both at home and overseas.