Highland-based energy group reports £273million of turnover in 2023
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Energy sector services group, Global Energy Group (GEG), has reported a 21 per cent increase in revenue for 2023.
It says this is due to the continued diversification and evolution of its operations seeing the group’s earnings drawn equally from its low carbon and hydrocarbon activities.
GEG reported a rise in turnover to £273 million – compared to £225million in 2022 – with earnings before interest, taxes, depreciation, and amortization rising from £11.4 million to £21.5 million on an unadjusted basis, driven by increased involvement in large scale wind and nuclear energy projects.
While wind and nuclear activities were the revenue drivers in the low carbon energy sector, GEG enhanced its offering to oil and gas clients in the transition and emission reduction space despite divestment of the group’s holding in engineering and construction business, with GEG portfolio companies benefitting from a capital injection following the £12.2m gain generated from sale of the business.
GEG’s chief financial officer, Gordon Farmer commented: “The divestment of Global E&C has significantly strengthened the group’s balance sheet and reduced working capital demands simultaneously. The injection of additional capital is at a pivotal time for the group as we look to develop our business to support future market demands in energy sector.”
The creation of the Global Wind Projects business and inclusion of its first full year of trading was also a fillip to the group’s 2023 results, while it and Global Crane Services supported numerous onshore wind projects in both Scotland and Ireland in the financial period.
Looking forward, GEG sees the recent Green Freeport award for its Port of Nigg Cromarty Firth base as a significant landmark for the group, believing it will attract further inward investment, create high-quality, well-paid new jobs, promote growth and regeneration - as well as making a significant contribution to the government’s net zero aspirations.
In addition to the recent construction of an additional quayside to boost capacity, the port now provides a full service offering including logistics, assembly and fabrication services to support both major renewables and clean energy projects, and traditional oil and gas activities, while plans for an offshore wind rolling facility and HV cable factory at the Port of Nigg are both progressing, too.
Speaking about the Inverness-based group’s positive 2023 financials, chairman, Roy MacGregor, commented: “It’s been a year of transition for the group, but also a successful one. It’s another step on the journey our directors have committed to of creating a sustainable, resilient business to service both the evolving low carbon and existing hydrocarbon markets.
“I think what is particularly pleasing for us is that we’ve achieved an even revenue split from both sectors, driven by growth in our wind and nuclear activities as well as in the services we provide to our oil and gas clients to help them fulfil their role in the transition to a low carbon economy.
“It’s been a momentous year for the group, with January’s award of Green Freeport status to Port of Nigg. I think it’s safe to say that the facility is firmly established as Scotland’s premier offshore renewables hub and multi energy source user site, with five key marshalling projects - including for the Beatrice, Moray East and SeaGreen wind farms - delivered there already.
“Looking forward we believe that Global Energy Group are ideally positioned to maximise on the considerable opportunities presented throughout the tax relief period that Freeport status brings.
"Continued investment in facilities, capabilities and our people will see us realise the full potential of the facility and associated GEG businesses to build a sustainable group to support a diversified market and customer base for years to come.”
