EnerMech Norway has won contracts to provide control and certification services to two of Norway’s leading power generating companies.
In line with EnerMech’s global strategy to diversify into new markets, the company said securing the land-based contracts complemented their long-established reputation in offshore engineering services.
EnerMech has been awarded a three-year frame agreement, with a two-year option, to provide service control and certification of lifting equipment at all power plants owned by Statkraft in mid and north Norway. As Europe’s largest generator of renewable energy, Statkraft employs 3800 staff in 16 countries in a number of sectors including hydropower, wind and solar power, gas-fired power and district heating supplies.
Skagerak Energi, one of Norway’s largest power grid companies, has also awarded EnerMech a three-year frame contract, with a two-year option, to provide control and certification of lifting equipment at the company’s power plants.
EnerMech Norway’s first success out with the traditional oil and gas sector was the award of a contract to manage the servicing and maintenance of all cranes and lifting equipment located at properties operated by the Norwegian Defence Estate.
Trond Møller, the EnerMech general manager for Norway, said: “Both these contract wins highlight the versatility and varied skills set of our cranes and lifting specialists.
“While a core part of the business remains the offshore sector, we will continue to identify new markets and to establish fresh relationships which provide us with the opportunity to grow the EnerMech brand. We are delighted to be kicking off 2018 by securing landmark contracts with two of Norway’s most respected power generation businesses.”
EnerMech said seven new engineering and operational positions would be created to service the contracts and other work.
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Engineering services group EnerMech has taken a majority stake in Aberdeen-based maintenance, inspection and integrity specialist MInteg Ltd.
MInteg provides a range of specialist maintenance, integrity and inspection services to the oil and gas, renewables, utilities and other major process industries, and offers full IRATA certified rope access capability.
MInteg founder Colin Smith and highly experienced maintenance and integrity experts John Bruce and Patrick Gallagher – who recently joined MInteg from operator Apache North Sea – have relocated to EnerMech’s Aberdeen headquarters and the business will continue to trade under the MInteg brand.
The MInteg team brings with them a strong track-record in non-destructive testing, rope access services, integrity management, inspection services and rotating equipment maintenance, including gas turbines and compressors.
EnerMech said the investment was part of an ongoing strategy to broaden its range of engineering services and to optimise support for late-life hydrocarbon assets by safely reducing costs and improving asset integrity.
Clients had indicated a requirement for integrity and inspection services and a broader maintenance capability and EnerMech had responded to that need.
EnerMech chief executive officer, Doug Duguid, said: “MInteg is a highly complementary business to our existing service lines and their skillset broadens out the capability of the integrated services we can offer to the energy, utilities and infrastructure sectors.
“Customers have indicated they would welcome an inspection and integrity offering as well as a wider maintenance offering which encompasses rotating machinery and the MInteg management team are one of the most experienced in the industry in this regard. With a focus on minimising costs for our clients while creating more cohesive and co-operative business models, this acquisition is consistent with our ambition to be recognised as the prominent provider of integrated services.
Mr Duguid said MInteg was a “highly scaleable business” and whilst the initial focus would be on the UK market, EnerMech would support its global ambitions by rolling out its services to existing clients in Africa, Australia and the US.
This is the second acquisition EnerMech has made in 2017 and follows on from the purchase in January of EPS Group which provides electrical and instrumentation services in Australia and the US.
EnerMech now has 3000 employees operating from 40 bases located throughout the UK, Europe, Africa, Asia, Australia, the Middle East and Caspian and the US.
EnerMech, the global provider of integrated mechanical, electrical and instrumentation solutions, today revealed that its 2016 revenues rose by almost £10m to £263.7m on the previous year and is forecasting that 2017 trading will increase by nearly £100m to around £360m.
Annual accounts to December 2016 also show profits (EBITDA) rose by £4.4m to £24.8m in the same period and it is expected 2017 profits will increase further to around £42m.
Figures lodged at Companies House show EnerMech’s UK division recorded similar success with revenues of £128.3m, up from £123.7m the previous year, while EBITDA more than doubled to £14.4m.
EnerMech employs 3000 staff across 40 locations in the UK, Europe, the Middle East, Caspian, Asia, Australia and the Americas, and has evolved in to one of the world’s leading integrated engineering contractors, continuing to serve the energy sector whilst expanding its service offering into new sectors, including renewables, LNG, defence, power, infrastructure and petrochemicals.
The acquisition in January of electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US, expanded the Group’s capability beyond its original mechanical focus and has provided EnerMech with access to large scale infrastructure projects and entry to the metals and utility sectors.
EnerMech chief executive officer, Doug Duguid, said: “We remain focussed on increasing our presence in international markets, strengthening our reputation in our core energy sectors, while building on the significant inroads we have made in to other important markets such as infrastructure and utilities.
“We have focussed on developing fresh ways of working and introduced innovative new business models for clients who are seeking a different approach in light of the changed oil and gas environment. Prudent cost savings, a strategic expansion into new sectors, and carefully targeted acquisitions, underpin what is an encouraging set of financial results.
“EnerMech is constantly evolving and our approach to providing truly integrated engineering services means we can remain agile and responsive to client requirements, which puts us in a strong position to maximise growth potential in the years ahead.”
EnerMech is enjoying significant growth in its US business, buoyed by success on LNG pre-commissioning contracts and in the petrochemicals sector, and it expects 2017 revenue in the Americas to double to more than £60m and staff numbers to increase from 150 to around 400.
The company recently announced it had secured a five-year contract to provide hose and hose fittings supply and services for Shell’s Prelude FNLG facility in Western Australia. In May it revealed it had formed a joint venture with Iraq’s Khudairi Group to target the country’s re-emerging oil, gas and infrastructure sectors, and in April it announced it had won £40m worth of contracts in the Caspian region, providing cranes and lifting, process, pipeline and umbilicals, valves, training and industrial services to a range of international operators.
EnerMech’s focus on diversification is paying off after it was awarded a significant BAE Systems contract on behalf of the Royal Navy.
The Aberdeen-headquartered integrated engineering contractor will provide a Flexible Hose Assembly Management Service (FHAMS) to be used on a large number of Royal Navy vessels.
The seven-year agreement, worth an estimated £2.5m, covers hose integrity management for more than 60 surface fleet vessels consisting of Type 23 frigates, Hunt Class mine hunters, River Class offshore patrol vessels, and survey and landing craft. This has resulted in an increase of a small number of new jobs.
Through a series of strategic acquisitions and organic growth, EnerMech is diversifying in to the defence, infrastructure and utilities sectors, while strengthening its track record in traditional oil and gas markets.
Paul Boyes, project manager for Equipment Management at BAE Systems, said: “EnerMech have a proven track record in the delivery of hose integrity management and had the capacity and drive to deliver and enhance the hose integrity management service to the Ministry of Defence (MOD).”
EnerMech’s regional director for Europe, Phil Bentley, said: “We have been engaged on earlier MOD contracts, but this is the first time we have provided hose integrity management services on such a large scale to the Royal Navy.
“We think our range of integrated services and the genuine alignment of our business lines is a proposition which is of interest to the military and defence sectors and we are looking forward to demonstrating our capabilities to BAE Systems and the Royal Navy.”
With more than 3000 staff spread across 40 locations in the UK, Europe, the Middle East, Asia, Australia and the Americas, EnerMech has expanded from its oil and gas origins and is now active in the mining, renewables, LNG, defence, power, infrastructure and petrochemicals sectors.
Global engineering and maintenance services provider, EnerMech, has been awarded a five-year contract for hose and hose fittings supply and services for Shell’s Prelude FLNG Facility in Western Australia.
The Prelude FLNG contract will be administered from EnerMech’s Henderson base in Perth while engineering and service support will be provided from regional facilities across Australia, including Darwin in the Northern Territory.
EnerMech’s Regional Director Allan Hart said: “We are pleased to announce the appointment of EnerMech as the Hose Integrity Management and Supply contractor on the prestigious Prelude FLNG Facility.
“This latest award strengthens EnerMech’s reputation as a leading maintenance service provider with a willingness to adapt to the changing oil and gas environment.”
The Prelude FLNG facility recently arrived at its location 475km north east of Broome where the hook-up and commissioning phase of the project is underway.
With our origins in the oil and gas industry and as an early promoter of integrated services, EnerMech has evolved to become one of the world’s leading integrated engineering contractors, continuing to serve the energy sector but also establishing an impressive track record in the international utilities and infrastructure markets.
The company’s founding ethos in 2008 was to provide safer, smarter solutions for clients and to devise fresh ways of working, to champion innovation, and to offer a fast response to changing market conditions and client requirements.
Those basic principles have forged EnerMech’s reputation as a leaner, stronger, more efficient and responsive provider of integrated services and, despite the oil and gas downturn of recent years, the company has continued its journey of international growth.
Global focus
We continue to broaden our services, combining organic growth with a strategic acquisition and have expanded to provide allied services to a range of multi-billion-dollar infrastructure projects.
Our acquisition of Australian electrical and instrumentation provider EPS Group not only added this critical service but has opened doors for other EnerMech business lines in oil, gas, metals, utility and infrastructure projects. EPS Group has worked on some of Australia’s largest infrastructure projects, including the A$2.1bn Sydney Light Rail project, major defence industry contracts and Australia’s largest road-building programme.
In the US, the EnerMech brand is on an upward trajectory and it is expected revenue in 2017 will double to more than £70m with staff numbers increasing from 150 to around 400 in the region by the year-end. This is in part driven by strengthening our existing relationships in the LNG pre-commissioning and petrochemical markets and we continue to work on projects including Sabine Pass, Cove Point, Freeport and Cameron LNG.
Utilising a varied skill-set found across all our business lines, we are adept at diversification and year-on-year capital investment ensures EnerMech can offer clients the latest equipment and technologies available on the market. This has maintained our position as the premier provider of integrated services across the asset-lifecycle, from commissioning through maintenance and operations support and finally, decommissioning.
An integrated approach
With extensive North Sea experience and a keen appreciation that maximising production from late life assets is a key objective of many clients, we have accelerated the development of our integrated services model and introduced flexible working contracts – an approach which is finding wide appeal, not just in the mature basins of the UKCS, but increasingly in the major hubs we operate in such as the Caspian, Middle East, Australia and the Americas.
This means we can offer an unrivalled integrated approach for shutdown, installation or maintenance work scopes and deliver significant time efficiencies and associated cost savings to clients.
Adding to our capability, EnerMech recently took a majority stake in MInteg Ltd, which provides integrity inspection services to the energy, utilities and infrastructure sectors. The company has an excellent track record in non-destructive-testing, rope access services (IRATA qualified) and the modification, upgrades and refurbishment of rotating machinery, including gas turbines and compressors.
MInteg founder Colin Smith and highly experienced maintenance and integrity experts John Bruce and Patrick Gallagher - who recently joined MInteg from a major North Sea Operator – have now relocated to EnerMech’s Aberdeen headquarters and the business will continue to trade under the MInteg banner.
EnerMech chief executive officer Doug Duguid said: “MInteg is an excellent addition to our capabilities and is part of our strategy to become established as the premier provider of integrated services. Customers have indicated they would welcome an inspection and integrity offering as well as a wider maintenance offering which encompasses rotating machinery, and the MInteg management team are one of the most experienced in the industry in this regard. Whilst our initial focus is to broaden this service out into the UK market, we see significant opportunities globally, particularly with our clients in Australia, Africa and the US.”
Ground breaking strategic alliance
Underlining our commitment to championing smarter solutions, we have formed a partnership with Baker Hughes, a GE company and PDI, to establish a groundbreaking initiative which will help North Sea operators and new entrants improve production while reducing operating costs.
The eMERge strategic alliance mirrors the objectives of the Oil & Gas Authority’s Maximising Economic Recovery initiative and combines new digital technologies, advanced engineering capabilities and innovative financing and business models, to help support operators extend the economic lifecycle of mature assets.
EnerMech’s Integrated Maintenance & Integrity Director, Stuart Smith, explained: “Many late-life assets have locked-in potential but the costs of lifting the oil or gas is prohibitive. eMERge is focused on using smarter engineering techniques and digital technology to improve production efficiency. An essential element of the partnership is to look at fresh ideas around financing, including, for example, outcome-based funding models which share the risk, in order to safely and economically extract the maximum hydrocarbons possible.”
EnerMech’s installation, commissioning and operational capabilities will combine with GE’s technology, state-of-the-art digital solutions, products and services and financing capabilities, while PDI will provide project management and engineering expertise. “There is a consensus across the industry that extending the life of producing assets will be critical to the basin’s future and by working together we hope to be able to provide operators with the support they need to address these challenges,” said Doug Duguid. With revenue expected to reach £370m in the current year and 3000 staff spread across 40 locations in the UK, Europe, the Middle East, Asia, Australia and the Americas, EnerMech has expanded from its oil and gas origins and is now active in the mining, renewables, LNG, defence, power, infrastructure and petrochemicals sectors.
With so much geo-political uncertainty, global economies will continue to face challenging times in the years ahead, but EnerMech has positioned itself well to assist clients across all business lines with our continued focus on smarter, safer solutions which deliver cost and time efficiencies.
EnerMech has signed up as one of the first businesses in Scotland to support Graduate Level Apprenticeships (GLAs).
The Robert Gordon University in Aberdeen is pioneering the work-based learning degrees which have been set up to address the national digital skills shortage.
EnerMech will support an undergraduate apprentice on the IT Management for Business BSc (Hons) course which is being run by the university’s School of Computing Science and receives funding support from Skills Development Scotland.
GLAs enable participants to earn a degree while working and they are delivered in partnership with employers over the course of four years. Much of the learning takes place in the workplace with active involvement from the employer and EnerMech has signed a Collaboration Agreement with RGU to define how we will support the apprentice during the course.
Shirley Smith, HR Director at EnerMech said: “We see the introduction of the GLA as a great way to improve the skills base of our existing personnel. It also gives us the opportunity to hire people straight from school and have them working in the business and learning all aspects while studying to achieve a degree.
“We currently employ engineers who have varying levels of qualifications and experience. Having access to the course gives us the ability to develop our people and retain greater skills in the business for the future.”
Professor John Harper, Deputy Principal at RGU, said: “We are delighted that EnerMech has come on board in support of the GLA initiative which represents a major milestone for the university and for work-based learning opportunities in Scotland.
“GLAs represent an innovation across teaching and learning, built around a structure which formally recognises the value of time in the workplace as part of a learning environment.”
EnerMech Australia’s Electrical & Instrumentation team have extended their involvement in one of the country’s largest infrastructure projects.
The landmark A$ 2.1bn CBD and South East Light Rail Project will be operational in early 2019, with 19 stops over a 12km route.
We have been awarded the contract for the design and construction works of Moore Park Tunnel Temporary Lighting package by global infrastructure developer Acciona.
This is in addition to a raft of other work being undertaken by specialised EnerMech E&I teams which includes electrical support for production of specialist ITP/ITC and method statement documentation; providing CAD Welding and testing services on track slabs; running, terminating and testing 750V negative cables (DC); cable running such as rail cross bonding, straight current collection pit, rail test pit and cables to voltage tripping device (VTD).
John Cox, EnerMech’s Electrical & Instrumentation Technical Director, said: “The breadth and scope of works which we are contributing to the CBD and South East Light Rail Project underlines our organisational ethos of being capable of delivering multi-disciplined services in highly specialised areas which provide value to clients across the entire project lifecycle.”
Engineering services specialist, EnerMech, has been awarded a contract on the £150 million polar research vessel, the RRS Sir David Attenborough.
The new polar ship is commissioned by the National Environment Research Council, (NERC) is currently under construction at Cammell Laird’s Birkenhead shipyard. It will be operated by British Antarctic Survey (BAS) and will transform how ship-borne science is conducted in the Polar Regions.
The new ship, named after world-famous naturalist and broadcaster Sir David Attenborough, is part of a major Government polar infrastructure investment programme designed to keep Britain at the forefront of world-leading research in Antarctica and the Arctic.
Aberdeen-headquartered EnerMech has been awarded the contract for the consultancy, manufacture, material supply, installation, hook-up and commissioning of hydraulic systems aboard the 128m long vessel.
The 18-month workscope includes the design and install of the Scientific HPU & ring main, hydraulic installation of deck hatches, handling/launch equipment and all other hydraulic driven equipment. EnerMech will have a dedicated team on-site at the shipyard during the build process.
EnerMech technical support manager, Neil McNaughton, said: “We will be working in close contact with Cammell Laird and other main contractors including Rolls-Royce, to ensure that the vessel’s hydraulic systems conform to the exacting operational requirements of BAS and the Natural Environment Research Council (NERC) who have commissioned the build of this vessel.
“We are delighted to be contributing to such a unique project and the award underlines our versatility in being able to undertake a wide range of services out with our more traditional sectors such as oil and gas.”
The RSS Sir David Attenborough is due to be commissioned in summer 2018 and after extensive sea trials is expected to sail on its first Antarctic scientific voyage for the 2019/2020 season.
