North entrepreneur Roy MacGregor is celebrating a major milestone for his Global Energy Group GEG).
The multimillionaire businessman and Ross County FC chairman is also celebrating a bumper set of financial results for GEG’s holding company.
Mr MacGregor, who founded GEG in 2005 and maintains a controlling stake, said he was “very pleased” with annual figures showing a big jump in both profits and turnover.
But he was even more pleased with GEG being able to report a 50/50 revenue split between low carbon and hydrocarbon activities for the first time.
Wind and nuclear drive higher sales and profits at Global Energy Group
The Inverness-based energy services company said its “watershed moment” for diversifying from its traditional oil and gas activities was largely the result of project growth in the wind and nuclear sectors.
From here on in, GEG will likely make an increasing part of its money from renewables.
Offshore wind projects and Inverness and Cromarty Firth green freeport status are expected to deliver many new opportunities for GEG and its 1,000-plus workforce.
© Supplied by Global Energy GroupMr MacGregor, the group’s 70-year-old chairman, said the best aspect of GEG’s transition was the way “so many people” across the business have been helped to adapt their skills for green energy.
And looking back on a “momentous” 12 months for the firm, he said its Port of Nigg facility was now “firmly established” as Scotland’s “premier offshore renewables hub”.
He added: “It’s been a year of transition for the group, but also a successful one.
Transforming the Port of Nigg into offshore renewables SUPERHUB.
Our vision is for the Port of Nigg to take a leading role in the industrialisation of floating offshore wind.
Watch our vision come to life: https://t.co/30YliPCYZG#Superhub #FloatingOffshoreWind pic.twitter.com/MUfF5mJj7I
— Global Energy Group (@Global_Energy_) October 4, 2023
“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.
“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.”
© Supplied by Global Energy GroupGEG is “ideally positioned” to maximise on the “considerable opportunities” of green freeport status at Port of Nigg, he said.
He continued: “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.”
The group has secured lucrative new work for Port of Nigg this year and welcomed the King to the facility in August.
© Supplied by Ross Creative CommunMr MacGregor said GEG would remain active on the acquisition front during 2024.
And he revealed the company has “five or six” potential deals “on the go”.
The accounts for GEG (Holdings) show pre-tax profits of £15.3 million from continuing operations during the year to March 21 2023. This was against profits of £942,000 in 2021-22. Total revenue increased by about 21% to £273.2m, from £224.8m previously.
It’s been a year of transition for the group, but also a successful one.”
Roy MacGregor, chairman, GEG
Despite the changing nature of its activities, GEG said it would continue to support the oil and gas sector in emissions reduction and the transition to net-zero.
And it highlighted a backlog of subsea and topside fabrication projects, providing a “sustainable trading platform for the next 12 months”.
The group also said its portfolio companies were benefitting from a cash boost after the sale of Aberdeen-based engineering and construction firm Global E&C to SCF Partners earlier this year. The deal, unveiled in February, delivered a £12.2m net gain to GEG.
“The divestment of Global E&C has significantly strengthened the group’s balance sheet and reduced working capital demands,” GEG chief financial officer Gordon Farmer said.
Mr Farmer added: “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.”
A first full year of trading for GEG’s Global Wind Projects business was also a fillip to the group’s 2023 results.
GEG emnployed 1,160 people on average in 2022-23, across operations in Inverness, Invergordon, Aberdeen and Edinburgh, as well as at Port of Nigg.
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