EnerMech's Equipment Rental division has strengthened its rental fleet with a £700,000 investment in acquiring four containerised Zone 2 ATEX 95 compliant 1050cfm/150psi air compressors.
The 300 horsepower Cummings diesel-powered machines conform to all current industry standards for safe operation and protection of diesel engines operating within open deck hazardous areas, including ATEX and OMCA MEC1.
The air compressors offer free air delivery of 1050cfm (29.7m3/min) at 150psi (10.3bar) and are housed within fully sound proofed DNV 2.7-1 offshore containers, with ISO corner blocks for ease of transportation and to aid safe container stacking.
EnerMech Equipment Rental Manager, Marc Gerrard, said: "During routine planned maintenance, service support or partial plant shutdown operations at onshore facilities, offshore installations and FPSO vessels, the use of certified Zone rated equipment remains a prerequisite.
"Reliability is the key to safe and successful operations which is what we strive to provide. This substantial investment in the most modern Zone 2 air compressors available underlines our commitment to safety and to providing clients with the best equipment the market has to offer."
EnerMech's in-house wire rope facility has received Det Norske Veritas (DNV) accreditation for the manufacture of wire rope slings. In addition to our current capabilities, this now means we are now able to offer wire rope slings for use on DNV approved containers/units.
The 800m2 Wire Rope unit was established with a £1million investment and features a full suite of equipment including two hydraulic swaging presses, hydraulic test beds and automatic cutting and stamping machines.
This gives us the capacity to offer sling manufacture from 8mm to 38mm diameter and this will be enhanced in 2014 with a new 1000te swaging press which will increase the range of sling products we can manufacture.
More than 200 DNV standard sling sets are produced each month for use on containers and work baskets in addition to general purpose slings which are used on a whole host of different applications.
Kevin Yule, Wire Rope & Inspection Services Superintendant, said: "DNV accreditation followed a lengthy and thorough audit process. It enhances our capability by allowing us to manufacture wire rope slings to DNV standard and with an increasing number of products now being built to DNV specification this aligns us with market demand."
General purpose wire rope manufactured by EnerMech includes single/two/three and four leg slings and each can be supplied with a varied type of end terminations.
As part of a recent North Sea pipeline project, EnerMech were contracted to flood and hydro test offshore subsea flowlines.
The testing operations were to be conducted in standard industry fashion by using a vessel-based downline spread. This meant the vessel would need to remain connected to the flowlines via the downline throughout the test period, adding to client cost.
EnerMech Process, Pipelines & Umbilicals director, Les Graves, said: "We suggested an alternative to the client, using our innovative Subsea Test Manifold (STM) combined with a data-logger as an interface between the downline and flowlines for the proposed testing operations.
"We have previously used this system successfully on hydro test jobs (and in conjunction with a subsea hydro test pump). This allows the vessel to disconnect and leave the flowline on test without the downline being in use."
EnerMech also proposed the innovative use of a recently (jointly with a specialist vendor) developed optical modem application, installed as an integral part of the STM.
The optical link system means there is no need for the vessel to be connected to retrieve test data real-time, or retrieve the manifold during operations if the vessel has to disconnect due to bad weather or other duties. The optical link system provides real-time data as well as historical data uploaded "remotely" to an ROV which can access this data without hard connection.
This proposal was accepted and the operation was a success, saving significant vessel time and cost and reducing vessel standby risk due to bad weather.
The client intends to use this system in future whenever the benefits can be realised.
Potential Benefits of Subsea Test Manifold
Mechanical engineering group EnerMech has appointed its first Chief Operations Officer as part of a management restructure which reflects the global nature of its business.
Former Asia Pacific Regional Director, John Guy, takes up the newly created post, reporting directly to Chief Executive Officer Doug Duguid.
John Guy will relocate to EnerMech's Aberdeen headquarters from Singapore where he will be replaced by David Drysdale who was previously General Manager for the Process, Pipeline and Umbilicals division.
The strategic changes come as EnerMech prepared to create a further 500 jobs in 2014 and expects turnover to increase by £80 million to £280 million as the company focusses on expanding its services in the US, Australia, Africa and Asia.
CEO Doug Duguid said: "John will oversee the safe and efficient running of the company's operations and his appointment, along with other senior management changes, positions us for the next phase of international growth across the major oil and gas regions."
Other appointments include Stuart Smith, who is promoted to European Director and is now responsible for EnerMech's business in the UK and Continental Europe, and who will work closely with Stavanger-based Trond Møller who remains in charge of Scandinavian operations.
Operations Director Phil Bentley takes up a new role as Technical Director and continue to be responsible for QHSE, IT and Design Engineering. To reflect the respective scale of both businesses, Asia and Australia regions will now be managed separately with Niall Conlon continuing as General Manager Australia.
EnerMech's Executive Management now comprises: Doug Duguid, CEO; Michael Buchan, CFO; John Guy, COO; Phil Bentley, Technical Director; Ingrid Stewart, Corporate Development Director; Shirley Smith, HR Director; John Wingfield, International Business Development Director; Derek Grant, International Commercial Director; Les Graves, Pipeline, Process & Umbilicals Director.
Clark Walker has been named Apprentice of the Year in recognition of his professional approach to all aspects of training during his four year apprenticeship at EnerMech.
The Aberdeen mechanical engineering group believes the lifeblood of any successful company is the quality of their staff and recently added eight new apprentices to take the number in training across the business to 34.
Each apprentice undertakes a four year training programme, a mix of on-the-job and college-based learning using industry-recognised qualifications. Mentoring by Equipment Manager, Alan Bailey, and a ‘buddying’ link with a serving apprentice who takes a genuine interest in their progress, is combined with assessments every three months as the trainees move between EnerMech’s six business lines.
The EnerMech Apprentice Award scheme was set up in memory of EnerMech’s former QHSE Manager, the late Malcolm Kennedy, who championed the apprentice scheme and the development of trainees.
The judges said Clark, 20, was highly capable, professional, at all times supportive of younger apprentices and had a mature attitude towards health and safety issues. He received an engraved trophy, certificate, cash bonus and tools gift voucher.
Third year apprentice Dale Forbes, 19, received a special commendation and was described as an excellent asset to any workshop, who worked hard, was unassuming and had the potential to be a great technician.
EnerMech human resources manager, Gillian Slessor, said. “Giving each apprentice exposure to all our business lines means at year four we will have extremely rounded technicians with highly transferrable skills and who have a strong grasp of our capabilities. That’s good for us and our clients as the apprentices are not limited to one line of work.
“It also helps the apprentices decide what career path they are best suited to and we are flexible in matching them to their abilities and interests. It’s fine to start out as a mechanical apprentice and discover you really want to be in engineering or that you prefer cranes to hydraulics. Continuous assessment makes sure we get the best from our apprentices and that they have a rewarding career path ahead of them.”
EnerMech’s apprentices have also emerged as the company’s greatest ambassadors and they play an important role in engaging local communities and schools where leavers are planning their first step on the career ladder.
Gillian added: “The apprentices play a central role at our client Open Days in Aberdeen, are regular attendees at career fairs and have spoken at events at local academies and industry training events, including Offshore Europe in Aberdeen.
“They are really enthusiastic in helping get the message out about what EnerMech can offer in terms of a rewarding career. It is much better for school pupils to be speaking to the apprentices who are of a similar age and they bond really well. They are a real credit to EnerMech and it is reassuring that we have engaged and enthusiastic apprentices coming through the ranks to take up senior positions in the years ahead.”
EnerMech Ltd has predicted 2014 turnover will increase to more than £280 million, a jump of £80 million on the current year’s forecast and double the £144 million revenue recorded in its 2012 annual accounts.
The Aberdeen-based company’s 2012 group accounts showed an £11 million profit (EBITDA*) on revenue which grew 41% from £102 million, and it expects 2013 EBITDA to break the £20 million barrier.
The mechanical engineering group reported that in the same period its UK domestic revenues topped £100 million for the first time (£101 million), up 38% from £73 million, and EBITDA increased from £1.9 million to £5.3 million.
Managing director Doug Duguid said performance in traditionally mature markets such as the UK showed 32% year on year growth, with non-UK revenues increasing by over 56% with Asia and Norway performing particularly well.
Strong trading in the current year, the acquisition of three strategic businesses and expanding its international presence to over 30 facilities in 18 countries, will strengthen EnerMech’s 2013 financial performance and push revenues over £200 million, with an expected £80 million uplift in 2014.
The company last month announced it had secured a £90 million funding package by establishing a ‘banking club’ including Bank of Scotland, DNB and HSBC, and that a combination of further investment in infrastructure and acquisitions would create 700 new jobs.
In the Director’s Report for the 2012 accounts, recently filed at Companies House, Doug Duguid, said: “The impact of global recession, a trend towards commodity pricing within certain sectors and targeting new geographies did not impact the group’s gross profit margin, which grew from 22.4% in 2011 to 22.9% for the current year [2012].
“This is particularly pleasing given the significant investment during the year in additional resources and operational overhead required to establish a solid base for future operations, predominantly within the Africa and Americas regions and within the Valves business line.
“Growth in EBITDA of over 31% from £8.3 million in 2011 to £11 million demonstrates the improvement in performance achieved [in 2012]. The directors believe that the continuing investment in top quality regional and functional management, along with investment in the competence and development of EnerMech employees, will provide a solid base from which to deliver further global expansion.”
In October 2012, EnerMech secured a further £15 million investment from original investors Lime Rock Partners, which enabled the group to complete the acquisition of Water Weights International SA Pty Limited in South Africa, a key element in the strategy to offer EnerMech’s range of services across the African continent.
With over 30 bases in key oil and gas regions, EnerMech employs 1800 staff and provides six main business lines to the energy and power industries – Cranes and Lifting; Valves; Hydraulic products and services, Process, Pipeline and Umbilicals (PPU); Equipment Rental, and Training services.
In January, EnerMech acquired Melbourne-based ValveTech Engineering which provides servicing, engineering, modification, testing and supply of valves to the Australian oil and gas, power generation, petrochemical and refining industries.
In July the acquisition of Vicon Services group and the subsequent opening of two new facilities extended EnerMech’s footprint in Australia to eight locations. At the same time, the addition of Great Yarmouth and Aberdeen based Total Reclaim Systems Limited (TRS) to the EnerMech group, increased the range of drilling support services the company can provide to offshore drilling rigs and production platforms.
Other key developments in EnerMech’s growth included an increased presence across West Africa, the opening of larger premises in Singapore, opening a second Norwegian base in Bergen, and establishing facilities in Mumbai and Kakinada in India, and in Mexico where the company recently secured its first contracts.
Two leading banks have joined with original lender Bank of Scotland to provide a £90 million funding package for oil and gas engineering group EnerMech.
EnerMech said the addition of Norwegian bank DNB and HSBC to form a 'banking club' reflected the requirements of a company which in five years has established a global footprint of more than 30 locations and has grown its workforce to over 1800.
The extra funds will be used to invest in new equipment, additional facilities and in expanding the workforce as EnerMech continues a growth strategy which will see revenues rise to £280 million in 2014 and the total number of employees increase by 700 to 2500.
An estimated 220 new jobs will be created in the UK with the majority in Aberdeen and the remainder in Great Yarmouth and Bristol. EnerMech will put a strong focus on expansion in the Asia Pacific region with 350 new posts, while the Middle East/Caspian count will rise by 90 and Africa and Norway by 50 and 20 respectively.
The international reach of the banking club will allow Aberdeen-based EnerMech to consolidate its overseas banking arrangements. Bank of Scotland will remain the lead bank and has refinanced a £60 million package as part of the new arrangement.
The funding arrangement follows an increased investment earlier this year by private equity specialist Lime Rock Partners which supported the acquisitions of Vicon Services in Australia and UK-based Total Reclaim Systems.
To date EnerMech has invested £30 million on acquisitions and £80 million on organic growth and has put aside a further £15 million for future acquisitions.
EnerMech finance director, Michael Buchan, said: "The size and international reach of our operation means we have now outgrown a single bank. By establishing a banking club we have a dual advantage of pooling the funds necessary to facilitate our projected growth and can also call on a wealth of global financing expertise.
"We have been very happy with the support and service from Bank of Scotland who have been involved since the company was first established in 2008 and we are delighted they remain on board as our lead agent bank.
"This investment and the continued support or our original equity partner, Lime Rock, demonstrates the increased financial strength of EnerMech as it continues to grow both in the UK and international oil and gas sectors."
Andrew Robertson, Relationship Director at Bank of Scotland, said: "We are delighted to continue supporting the team at EnerMech with an increased funding package as part of their ongoing international growth plans."
Wendy Keenan, Vice President, DNB Bank ASA, said: "We are pleased to be given the opportunity to support EnerMech and help management fulfil their plans for expansion."
Keith Robertson, Leveraged Finance Manger of HSBC in Aberdeen, said: "HSBC welcomes the opportunity to support the next phase of development for this international oilfield services company, which has already demonstrated a highly impressive track record of growth. EnerMech has a market leading suite of products and services, a proven high calibre management team and international operations which are well aligned with HSBC's global footprint."
Simmons & Company advised EnerMech on the refinancing package with legal support from Burness Paull. Legal advice to the banking club was provided by Blackwood Partners with financial due diligence undertaken by KPMG.
Mechanical engineering group EnerMech has announced a global affiliation with leading US air winch manufacturers Thern.
Aberdeen-headquartered EnerMech employs more than 1800 people in 26 international locations and provides a range of integrated services to the oil and gas sector, including cranes and lifting services.
The new Thern TA and TA-C (CE/DNV) series of air winches have the capacity for lifting/pulling up to 37,000 lbs/17,000 kg and are used to help set up the rig, pull pipe, move materials, position equipment and do countless other lifting and pulling jobs.
EnerMech announced the tie up with Minnesota-based Thern at Offshore Europe in Aberdeen during a visit by Thern vice president Chris Baudhin and sales directors Scott Thelen and Martin Van Loo.
EnerMech is now able to serve offshore oil Iindustry customers worldwide with a variety of air winches produced by Thern that are readily available through the EnerMech network for immediate sale or rental.
Chris Baudhuin said: "This new affiliation with EnerMech makes Thern air winches readily available through the EnerMech network and mean we can better service oil and gas customers' needs globally."
EnerMech director of Cranes & Lifting, John Morrison, said: "The Thern relationship fits EnerMech's strategy of affiliating with high quality equipment manufacturers."
1998
Total Reclaim Systems established in Great Yarmouth to provide specialist pumping equipment to the offshore oil and gas industry.
1984
Formation of Water Weights South Africa to provide proof loading testing services to the Region.
