Qserv Doubles Profits, Buoyed by Continued High Investment

Qserv has reported 2007 pre-tax profits of £7.45 million – almost double that of last year's financial results of £3.9 million in its annual report for the year ended December 31, 2007.

The company, which was recently acquired by Aker Solutions, also reported an 84% increase in turnover to £47.7 million, buoyed by continued high investment in personnel and assets and also the overall buoyancy of the oil and gas sector both in the North Sea and international markets. Profit margins have been maintained with EBITDA and PBT showing corresponding growth over the previous year. Qserv capital expenditure in 2007 was £8.1 million and is expected to exceed £15 million in 2008.

Following a major recruitment campaign, staff numbers have risen considerably in the past year, from 350 to more than 460, with most of the employees working from the company's headquarters in Aberdeen. The company is actively recruiting across all disciplines and is on track to achieve its global target of 500 employees by the end of this year. It aims to increase its workforce to 700 worldwide and reach annual turnover of £100 million in 2010.

Qserv has been successful in increasing its market share by winning additional customers at home and abroad as well as gaining additional work from its existing key customers who have all been increasingly active. Though the company is focused on global growth in West Africa and Asia Pacific, strengthened by the appointment of Dave Bowman as international operations director, it remains committed to UK North Sea operations, which remain its largest operating region and where the majority of its growth was achieved.

The company's process division has already doubled in size in recent months following two major contract awards and is expanding its service offering to include bolt torque and tensioning and pipe freezing services in line with client demands.

Commenting on the results, Ciaran Dreelan, well services director said, "We are very pleased with these results and they reflect the commitment and professionalism of our staff. This is clearly demonstrated by the growth of Qserv Process Services and the launch of our UHD Fishing Services offering. We are also very pleased to commend our employees on our recent safety awards and a further year of zero lost time incidents.

"Success continues to be our greatest motivator and people our greatest asset and as part of Aker Solutions, we will continue to invest in people and equipment to remain successful whilst we expand the business both here and overseas.

"We are confident that this strategy along with commitment from our employees and key customers will maintain the high level of growth we have achieved over the last seven years and allow us to continue in providing a 'Quality Service.' Qserv is well placed for another year of strong and profitable growth."