PSL Energy Services Double Profits

PSL Energy Services Ltd has posted pre-tax profits of £5.3 million, ($10.1M) up from £2.4 million ($4.5M) the previous year.

The Aberdeen company's latest accounts show turnover increased by 85 percent to £74 million (£40 million 2004), while profits after tax rose from £427,000 to £2.3 million.

The accounts show PSL have significantly outperformed budget forecasts in successive years and the company are predicting further growth and profitability in the current financial year with turnover expected to increase by 21 per cent to £90 million ($171M).

PSL's managing director, Doug Duguid, said: "This growth has been achieved not only because of increased activity in the oil and gas services market but also by taking market share from our competitors, while our operational efficiency, relative to our competitors, makes us more attractive to our customers."

The continuing implementation of an international growth strategy has seen turnover from overseas operations increase to £37.2 million ($69.7M) – 50 percent of turnover.

The UK remains the single largest operating region with turnover of £36.9 million ($69.1), up 44 percent on 2004, while there has been a significant upturn in business in Norway and specifically the Caspian where revenue increased from £5 million to £12 million.

Mr. Duguid added: "During 2005 we added bases in Thailand, Abu Dhabi and Algeria and further expansion is underway in Kazakhstan where we are building on our already strong foundations in the Caspian region."

PSL have been able to deliver growth in new markets by successfully introducing new business lines in both UK and overseas markets.

The Company has maintained its policy of investing in new equipment and facilities, spending a further £15.3 million on capital expenditure projects, bringing the total investment to £24 million since the business was formed in April 2003.

PSL's finance director, Michael Buchan, said: "One of the most significant Capex projects completed in 2005 was the opening of our new base in Baku, Azerbaijan, which has been welcomed by all our stakeholders in the Caspian as a demonstration of our long term commitment to the region.

"We also put a considerable effort in to advancing our join venture partnerships in the UAE, Qatar, Kuwait and Saudi Arabia and this positions us for substantial growth in the Middle East during 2006 and beyond.

"Similarly, by securing a number of key contracts in Thailand, Australia and Malaysia, and with other contracts being tendered, our Asian side of the business should contribute to a significant growth in revenue and profit.

"In the UK our service quality and HSE track record have allowed us to renew long term contracts with many of our major customers, giving stability and backlog.

"We are extremely pleased with these results and the commitment and professionalism of our staff has been a key contributor to the Company's success. We are confident that the high levels of growth achieved over the past two years will continue and that PSL will go from strength to strength."