Sparrows Scores $55MM in Crane Contracts

Sparrows signed contracts in January worth more than $55 million which will secure or create over 135 jobs on and offshore through its Aberdeen and Abu Dhabi operating bases.

The contracts range from 3-month projects to be completed by the summer to four year contracts with options for further extensions. Contracts have been signed with clients including Shell, Nexen, Total, Technip and Helix Well Ops and range from overhaul and installation of replacement cranes to long-term operation, maintenance and engineering services supporting entire fleets of cranes on clients' offshore installations.

"This is an excellent start to the new year, reflecting returning confidence in the offshore sector now that oil and gas prices have stabilized at more sustainable levels," said Sparrows chief executive officer, Doug Sedge. "We continued to invest in our people and facilities through the leaner times in 2009 and we are now well placed to respond to upturning client demand. These new contracts directly secure 85 existing jobs in the city, and have allowed us to create a further 35 jobs in the area: they also sustain other jobs in support functions like our workshops, HSEQ and finance teams."

Internationally, between November 2009 and February 2010, Sparrows secured approx. $4 million worth of long term contracts and projects for services in the Middle East with clients including Dubai Petroleum and Total. The work covers a wide scope of services such as crane maintenance, commissioning, replacement, inspection and modification on offshore installations and barges; the contracts will secure 11 existing jobs and create 25 new positions in Sparrows Middle East operations.

The contracts awards have taken place as Sparrows announced that the group (formerly conducting its business under four brands: Sparrows Offshore, Energy Cranes, Aberdeen Hydraulics and Baricon Systems) has rebranded as Sparrows and established six Business lines to optimize service accessibility and value to clients.

These are: Sparrows Engineering & Operation (providing the widest range of crane services to the market), Sparrows Rental (delivering fully integrated offshore crane rental services), Sparrows Manufacturing (producing tailor made offshore pedestal cranes to API specification 2C), Sparrows Training (providing crane and fluid power training), Sparrows Fluid Power (formerly Aberdeen Hydraulics, providing the full range of hydraulic services) and Sparrows Baricon (formerly Baricon Systems, supplying pipe and cable laying equipment and services).

The changes underscore the strength of the business, which has global sales of over $247 million. Group headquarters remains in Aberdeen at Bridge of Don.

"Our pace of growth had left some clients unclear as to the true scope of our product and service offerings. Uniting under the Sparrows brand reinforces the depth and breadth of our expertise and resources," explains Doug Sedge. "Sparrows is today a global contractor, continuously raising standards in safety, service, technology and value."


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