ITS Group Cites Strong and Continued Growth Exiting 2008
ITS Group, a leading supplier of oilfield equipment and services to the global offshore oil and gas industry, has reported strong and continued growth in its annual report for the year ended December 31, 2008.
Group turnover increased by 47% to $143.6million, as the Group saw the benefit of continued investment in its rental fleet and international infrastructure. Furthermore, the Group made significant progress in the year in its strategy for profitable growth. The 47% increase in turnover has resulted in earnings before interest, taxes, depreciation and amortisation (EBITDA), before one-off costs, increasing by 50% to $47.2million. Capital expenditure for the future continued in 2008, with a further $62.4million invested in plant and equipment across all service lines
The Group continues to successfully expand its services across the world. In 2008 new facilities became fully operational in Kakinada (India) and Al Hamriya (UAE), with the acquisition of Trinpet-ITS Ltd adding a new operation in Trinidad. In early 2009, new premises were added in Mexico, Iraq and Kazakhstan, as well as the completion of two joint ventures in Saudi Arabia and the Far East to accelerate growth in already established regions. Throughout its global facilities, employee numbers have since risen to more than 1,000.
ITS Group also announced that it has agreed new borrowing facilities with the Bank of Scotland and Clydesdale Bank to be used for ongoing working capital purposes and also to support the Group’s growth strategy.
Commenting on the results, Jeff Corray, Group chief executive officer, said, "I am pleased to be able to report another set of strong results despite the downturn in the global economy in the last quarter of the year. We continue to operate in a very challenging environment especially given the tight credit markets.
"Given this I am particularly pleased that ITS has been able to finalize additional borrowing facilities with the Bank of Scotland, a long term partner to the Group and also to welcome the Clydesdale Bank as joint arranger. With continued and controlled investment in equipment and infrastructure, coupled with tight operational management I remain confident that the Group is well placed to meet the challenges of the current economic environment."
Andrew Robertson, Director for Bank of Scotland Corporate in Aberdeen, commented, "Despite the tough economic conditions experienced by businesses in recent times, ITS has delivered a very impressive set of results. Bank of Scotland is delighted to be continuing its support for such a highly valued customer. The agreement we have reached with ITS is indicative of the Bank's commitment to support businesses who can demonstrate strong management teams and future growth potential."
Jamie Ritchie, Clydesdale Bank Director, Corporate Banking, Aberdeen, "We are delighted to support ITS Group -- a highly successful Aberdeen head-quartered business with a global reach. The management have delivered exceptional growth in recent years and this is an ideal time for us to deliver facilities that will help build on that."