Mechanical engineering specialist, EnerMech, has strengthened its management team with the appointment of its first director of QHSE.

Ian Pym takes charge of global quality, health, safety and environment functions as part of a drive to enhance performance across the Aberdeen oil and gas services group’s 25 international locations.

EnerMech employs 1500 staff and specialises in providing integrated services to the energy industry which includes cranes and lifting, valves, hydraulic products and services, Process, Pipeline and Umbilicals (PPU), equipment rental and training services.

The new post has been created as a result of EnerMech’s growth and the desire to maintain uniformity and improve standards as the business enters a new stage in its development.

Mr Pym joins EnerMech from nuclear fuel company URENCO where he was head of global compliance. Previously he was in charge of HSE for Babcock defence division and during a 30 year career with Rolls-Royce held a number of roles which included head of HSE for the company’s submarine business and senior corporate positions.

His experience in the nuclear, defence and engineering sectors will shape our approach to maintaining a rigorous adherence to management systems and promote a step change in safety behaviours.

EnerMech operations director, Phil Bentley, said: “The rate of organic growth, paired with our strategic acquisitions, has established EnerMech as a truly international business and we are now at the stage where QHSE should have a dedicated director.

“We place QHSE at the core of all our operations and every EnerMech employee understands its importance and how crucial it is to winning the trust and loyalty of our client base. Against that background we needed an industry professional of the highest calibre, and Ian is someone who can bring to bear his vast experience and shape how we maintain and improve our QHSE provision.

“It is important that we recruit smart thinking individuals who share the Board’s ambition of developing the business to its full potential and Ian’s appointment is the first of a number of high level additions we will make to the management team.”

Ian Pym, who is based at EnerMech’s Aberdeen headquarters, said: “EnerMech is an exciting company going places fast and this is an excellent time to be joining such an outward looking organisation.

“I will have the opportunity to shape the policy and procedures at the heart of its health and safety culture and to ensure standardisation of all QHSE operations across the company’s international bases. My experience in the nuclear, defence and engineering sectors will provide a solid base for ensuring a rigorous adherence to management systems and a step change in safety behaviours.”

EnerMech’s continuing success has been further boosted with an additional £20 million funding from Lloyds Bank Commercial Banking in Aberdeen.

The latest tranche of funding will support EnerMech’s organic growth initiatives and will also assist in funding a number of acquisitions the Aberdeen mechanical engineering company has in its sights.

Lloyds Bank Commercial Banking is one of the original financial backers of EnerMech, which was established in 2008, now has 1400 employees operating from 24 locations and is forecasting turnover in 2013 will exceed £225 million.

An initial investment of £24 million was increased to £44 million in 2011 and the latest round of funding takes Lloyds Bank’s support to more than £60 million.

EnerMech provides a range of services to the oil, gas and energy sector including cranes and lifting, valves, hydraulic engineering, pipeline, process and umbilicals (PPU), rental equipment and training services.

EnerMech finance director, Michael Buchan, said: “This additional facility will assist with planned organic growth and a number of acquisitions which will strengthen our operations in Australia and Africa.

“Lloyds Bank has been very supportive of EnerMech since the earliest days and this latest capital investment demonstrates the strong relationship we enjoy with our banking partners.”

To date EnerMech has invested £75 million in organic growth and a further £30 million on a series of acquisitions, including the most recent additions to the group of Valve Tech Engineering in Melbourne and Water Weights International in Cape Town.

Mr Buchan added: “This dual policy of measured organic growth and astute acquisition means we are now an organisation with substantial scale in each of our business lines across many of the key oil and gas territories. Setting out with a clear strategic plan coupled with aligning ourselves with the right group of strategic investors has been critical to this success.”

Stuart Brown, Regional Director, Complex Deal Team, Lloyds Bank Commercial Banking, said: “Supporting fast growing Scottish companies is a key focus for Lloyds Banking Group. In this regard we are delighted to continue to support EnerMech’s management team with this additional funding to fulfil their strategic plans.”

Mechanical engineering services company, EnerMech, has been awarded a process services contract by BG Group which could be worth up to £16 million.

The three year contract (+1 year option) covers all BG Group’s UK North Sea assets including the Lomond, North Everest and Armada platforms.

The workscope includes the provision of topside process, flange management and nitrogen services and is the first contract EnerMech has secured with BG Group.

Aberdeen-based EnerMech said the contract win will create new jobs and take its total workforce to more than 1400.

EnerMech’s director of Process, Pipeline & Umbilicals, Les Graves, said: “We are looking forward to assisting BG Group in supporting their assets in the North Sea and this award reaffirms our position as a major supplier of process services to the oil and gas sector.”

EnerMech has completed the first of five acquisitions it has planned for the next six months with the acquisition of Melbourne-based Valve Tech Engineering in a multi-million dollar deal. 

Established over 20 years ago, Valve Tech is a well respected provider of servicing, engineering, modification, testing and supply of valves to the oil and gas, power generation, petrochemical and refining industries throughout Australia.

Valve Tech founder and managing director, Chris Tabone, will take a new position in the enlarged business, heading up EnerMech’s valve offering in Australia.

The deal represents a major expansion of EnerMech’s global valve services, procurement and manufacturing network and complements its existing valves supplies and servicing facility in Perth, Western Australia.

EnerMech managing director, Doug Duguid, revealed the company would invest £10 million (AUD $15 million) in its Australian business over the next two years and plans to open bases in Gladstone, Brisbane and Karratha to better service oil and gas, power industry and mining clients.

EnerMech views its valves business line as a vital element of its growth strategy in Australia, where it plans to more than double its workforce to 180 in the next 12 months.

Mr Duguid said: “Valve Tech is an excellent strategic fit for our business and gives us significant maintenance and repair capabilities in addition to our existing offering in the region. It strengthens our geographic reach in eastern Australia and introduces EnerMech to Valve Tech’s broad client portfolio.

“Our valves business line is key to EnerMech’s expansion plans in the Australian energy market and we are really pleased to be working with Chris Tabone and his team. The combined strengths of both businesses give us a very strong platform to become a major player in the valves supply, repair and overhaul market and there are many benefits for both parties.”

Chris Tabone added: “The enlarged business, with its greater scale and resources, will provide our clients with innovative turnkey engineering services, solutions and equipment, which redefines valves services, supply and asset management within Australia.”

The new entity, which will trade as EnerMech Valve Tech, expects to announce several major contract wins in the first quarter of 2013. The company will also roll out its EnerMech LIVE valve management system, giving clients full visibility of all its valve assets.

Mechanical engineering services company, EnerMech Ltd, doubled turnover in 2011 to £102 million, up from £50.6 million in 2010, according to its latest group accounts.

The Aberdeen-based group delivered an £8.4 million profit (EBITDA*) and forecast 2012 profits would almost double to £14 million on expected turnover of £140 million.

A recently agreed £25 million funding package from private equity backers, Lime Rock Partners, will underpin five strategic acquisitions in 2013, in addition to the £3 million acquisition of South African business Water Weights International last month. (December 2012)

Target companies are located in Australia, Africa and the USA and will enhance EnerMech’s global reputation as a major service provider to the oil, gas and power industries.

The latest accounts filed at Companies House for the group’s UK subsidiary, showed a marked reduction in pre-tax losses, which were down from £5.28 million in 2010 to £1.56 million in 2011.

The Director’s Report said every business line had achieved significant growth in 2011 with long term contract wins helping Equipment Rental to grow by 32% and Cranes by more than 50%. Organic growth in Hydraulics and Training had delivered an increase in sales of 27% and 34% respectively, while Valves had added £5.6 million revenue and the newly established Process, Pipelines and Umbilicals business line contributed £26 million global sales in its first full year of operations.

EnerMech managing director, Doug Duguid, said the strong financial performance was the result of significant investments in the company’s formative years to build an international infrastructure which was pivotal in winning new client work.

Mr Duguid said: “Higher activity levels drove increased profitability with gross profit margins increasing to 22.4% over the 2010 equivalent of 14.3%. This helped us achieve a significant milestone in returning £2.6 million of pre-tax operating profits, the first year the group has delivered a positive result and after only three full years of trading.

“We will continue to invest in capital assets and high calibre management across the global business to support future expansion. Further acquisition targets have been identified for 2013 and once complete will take the business to a new level in terms of geographic reach and strategic ability to deliver our services and technologies.”

In a little over four years since it was formed by Mr Duguid and finance director Michael Buchan, EnerMech has developed in to an Aberdeen-headquartered business with 1400 staff located in 20 international locations.

Mechanical engineering company, EnerMech, is to open a second Norwegian base as part of a £3 million (NOK 27.7 million) investment to grow its Scandinavian business.

The new base and workshop in Bergen was selected to be closer to Norway’s largest shipyards and to offer a rapid response service to existing and new clients.

EnerMech will target the Process, Pipeline & Umbilicals (PPU), hydraulics, cranes and rental equipment markets and will be able to offer clients a more reactive service for on-site mechanical provision and general customer support.

The expansion will take EnerMech’s headcount in Norway to 50, and the company expects the new base to grow in line with its Stavanger operation, which has seen annual growth of between 50-80% over the last four years.

EnerMech general manager in Norway, Trond Møller, said: “After four years of steady growth in Stavanger, opening in Bergen is a natural fit as the city is an important centre for Norway’s oil, gas and subsea industries.

“This will give us access to Norway’s largest yard market and we are confident there will be a strong demand for our cranes, rental equipment, hydraulics and PPU services. Bergen has always been important to our long-term objectives and this expansion shows we are committed to Norway for the long term and that we will continue to invest in infrastructure to meet client expectations.”

EnerMech Ltd has stepped up its presence in the African oil and gas sector with the £3 million (43 million Rand) acquisition of heavy load testing company Water Weights International SA (Pty) Ltd. 

The mechanical engineering group will use Water Weights International’s (WWI) strategic relationships to accelerate growth of its main business lines in South Africa and in key East and West African countries.

EnerMech will invest up to £20 million (284 million Rand) in its African operations over the next three years and expects its workforce to grow to 250 in the same period.

Cape Town-based WWI specialises in the proof load testing of cranes, lifting equipment and structures, and serves the marine, shipping, engineering, industrial and offshore sectors. Its water-filled proof load bags are viewed as a more economical and safer method of load testing than traditional solid weight forms of testing.

The deal is not connected to UK based Water Weights Ltd, which was formed in Aberdeen in 1979, and for whom WWI has acted as representatives in Cape Province for almost 30 years.

The new entity will be known as EnerMech Water Weights SA (Pty) Ltd and WWI managing director Neil Scheibe, will remain in post, ensuring continuity of business relationships and service. Twenty five staff will transfer to the new company which will relocate to larger premises near to Cape Town’s main container terminal in Paarden Eiland.

EnerMech managing director, Doug Duguid, said the deal was a perfect fit with the company’s existing cranes and lifting division, and would provide a platform for swift expansion across the African continent.

The Aberdeen-headquartered group already has a base in Ghana and has completed or is currently engaged in projects in South Africa, Nigeria, Angola, Gabon, Democratic Republic of Congo and Equatorial Guinea. Expansion will follow in Namibia, Mozambique, Kenya, Tanzania and Uganda.

Mr Duguid said: “We have been looking for some time for a suitable partner in Africa and Water Weights International fits the bill perfectly. Not only do its superb products strongly align with our own, but it has excellent relationships with key players across a number of African countries which will benefit the new business.

“In light of the large number of significant oil and gas discoveries in West and East Africa, we believe there will be many opportunities to introduce and establish our business lines, including cranes and lifting, valves, hydraulics, process, pipeline and umbilicals, equipment rental and training services.

“Using Cape Town as a hub, we will invest up to £20 million (284 million Rand) over the next three years to firmly establish EnerMech’s six main business lines and to strengthen Water Weights International’s services and products in West and East Africa. We believe this will add £50 million (710.6 million Rand) to our global revenue and expect our workforce in Africa to grow to 250 by 2015.

“Our policy is to establish a strong infrastructure in each geographic location we operate in and we already have committed £5 million (71.6 million Rand) worth of new equipment which will soon be shipped to Cape Town. Existing clients who are moving in to Africa can expect the same level of service and rapid response we offer in other oil and gas producing regions.”

Neil Scheibe said: “The deal represents a great opportunity for Water Weights International to grow our business and the excellent fit with EnerMech will create a wealth of opportunities for our staff.”

EnerMech has signalled it’s about to step up international expansion with the appointment of mergers and acquisitions expert Ingrid Stewart. 

Mrs Stewart has joined the mechanical engineering group from investment bank Simmons & Company International where she was a director specialising in corporate finance.

A chartered accountant, she takes on the newly created role of Corporate Development Director, as the Aberdeen-based company embarks on a new phase of acquisitions and strategic joint ventures

EnerMech has recently secured a further £25 million from long term private equity backers Lime Rock Partners and is in the process of raising additional funding from a group of banks to finance its continuing acquisition and growth strategy.

Already well established in the UK, Norway, the Middle East and Caspian, North America, West and South Africa, Singapore, Indonesia, China and Australia, EnerMech expects to add five new businesses to the group in the next six months as it extends its global footprint.

Mrs Stewart will be responsible for the execution of future acquisitions and the subsequent integration of those businesses into the EnerMech group. She will play a significant role in the overall strategic development of the company and long term business plan, positioning EnerMech for additional future investment.

EnerMech managing director, Doug Duguid, said: “We are entering a new phase of international growth which will take the company to the next level and Ingrid will bring us greater experience in deal execution and finance raising.

“EnerMech is a successful business with a robust long term growth strategy and recruiting management of Ingrid’s calibre, the first of several key appointments, will accelerate our international development.”

In her six years with Simmons, Mrs Stewart worked on several high profile acquisitions, disposals and finance raisings within the energy industry. EnerMech was a key client and she has advised the company since it was formed in 2008 by Doug Duguid and finance director Michael Buchan.

She said: “After 15 years in professional services and advising companies like EnerMech, I’m looking forward to transferring my skills and working from the inside of one of the UK’S most exciting and ambitious oil services companies.

“EnerMech has made no secret of its objective to establish a truly global entity and I will help identify suitable targets and manage the acquisition and integration process, freeing up Doug and Michael to concentrate on delivering the growth expected by our investors.”

EnerMech has been recognised for its revenue growth and financial performance in Norway by the country’s leading financial newspaper Dagens Næringsliv.

The Gaselle index charts Norway’s leading companies with turnover in excess of 1 million NOK and based on a doubling of revenue and growth over four successive years.

Stavanger-based EnerMech was chosen as the leading Gaselle company for the county of Rogaland and came seventh in the national finals for high performing businesses.

Trond Møller, EnerMech’s general manager in Norway, featured in a two page feature in Dagens Næringsliv which outlined the company’s growth and commitment to the Norwegian market.

Trond said: “Dagens Næringsliv is a very well respected publication and we were delighted to be chosen as Rogaland’s most outstanding company and to be recognised nationally. It raises our profile in and places EnerMech as a serious business with a robust plan for further expansion in Norway.”

The article which appeared in Dagens Næringsliv and a video interview with Trond can be found here: http://www.dn.no/gasellene/article2520487.ece

Reflex Marine was represented by EnerMech FZE this year at ADIPEC 2012. EnerMech is one of a group of companies providing regional services to Reflex Marine clients as part of its global portfolio of Accredited Services Centre (ASC). 

ADIPEC, held at the Abu Dhabi National Exhibition Centre, is the largest event for the oil and gas industry in the Middle East. This year it hosted more than 1600 exhibitors and attracted more than 45,000 visitors. Reflex Marine’s business manager for CIS, Africa and the Middle East, Tahir Ahmad, was at the show and a scale model of the FROG-3 was a big attraction on the EnerMech stand.

Tahir said: “Having the FROG on the stand was a great talking point for visitors and it attracted a lot of attention from some big players in UAE, Qatar, Saudi Arabia and others. One visitor was particularly fascinated as they didn’t know much about it and it was a great opportunity for me to appraise them.

“Reflex Marine has a very good relationship with EnerMech, which has hands-on experience in service and maintenance, training and after sales support for our products, and we are pleased to have them as our ASC in the Middle East.”

EnerMech regional director for the Middle East, Charlie Topp, said: “We have a strong alliance with Reflex Marine and in addition to being an Accredited Service Centre for the Middle East and Caspian regions, we enjoy the same status in Singapore and Norway.

“Reflex Marine’s products complement EnerMech’s cranes and lifting business and support our commitment to improving personnel transfer safety in the offshore workplace. We look forward to working with Reflex Marine across the world and in building on the success of 2012 which has proved to be a record year for providing these services.”