EnerMech, the mechanical engineering company, has announced a major expansion in the Asia Pacific region, India and Australia which will see the opening of seven new offices.
The company already has well established bases in Singapore, and in Perth and Melbourne, and in the last two years has invested £15 million to establish its business lines in the eastern hemisphere.
The next stage of international development includes opening offices in Hong Kong, Kuala Lumpur and in Busan, South Korea, with two new operations also being established in Brisbane, and Karratha in Western Australia. In India, the company is recruiting senior staff and will open an office in Mumbai followed by a workshop facility in Kakindada in Andrah Pradesh province to target deepwater projects.
EnerMech is already represented in Shenzhen, Shanghai and Tianjin in China but a new base in Hong Kong will allow it to work more efficiently with Chinese operators and focus on its hydraulics design and manufacture business, along with offshore crane projects and process, pipeline and umbilicals (PPU) services.
Key EnerMech personnel, including regional director John Guy, have a long association with South Korea’s oil and gas sector and the company has strong links to the HHI, Samsung and DSME shipyards. Hiring local staff and deploying equipment to be permanently based in Busan will give EnerMech a competitive advantage in tendering for hydraulics, offshore cranes and PPU projects.
In Malaysia, EnerMech has successfully completed a number of strategic contracts and a base in Kuala Lumpur will support key drilling and operating companies in the country.
The company said it will spend a further £6 million in equipment for the Asia Pacific region in the current year and in 2013 aims to extend is geographical presence in Taiwan, Thailand, Vietnam, Indonesia and New Zealand.
In 2011 EnerMech tripled revenue generated in Asia Pacific region through the introduction of its PPU and hydraulics services and expects to double 2012 revenue with service line development in valves, hydraulics and the introduction of new facilities and specialist training capabilities.
John Guy, EnerMech’s regional director for Asia Pacific, said: “This investment and opening new facilities is a major ramping up of our activities in Asia Pacific countries and Australia, and is the second phase of a strategy which will establish EnerMech as the leading provider of mechanical engineering services in the eastern hemisphere.
“This directly addresses our client’s requirements for international standards of service and equipment but with local labour provision. We are moving away from the industry’s modus operandi of mobilising equipment from a central hub, and by locating our equipment and personnel in-country, we can avoid prohibitive transportation costs and build up our in-country capability.”
EnerMech will undertake a recruitment campaign to attract the best qualified and skilled employees for each business line.
EnerMech managing director, Doug Duguid, said: “Our philosophy of putting boots on the ground and making long-term commitment to the regions in which we operate demonstrates we are in this for the long haul. This assures clients of a continuity and quality of service and access to the best equipment and staff available in the market place.”
EnerMech has secured its first major PPU contract in China and will perform nitrogen/helium leak testing, leak repair and high pressure hydrojetting services on behalf of Hanas New Energy Group.
The engineering services group will supply personnel and a range of leak testing spreads, pumps, tanks and bolt torquing services at the Ningxia Hanas LNG plant under construction in Yinchaun.
Working closely with Chinese partners Qingdao Pacific Oceaneering (QPOC), the work scope will last about three months and is valued at approximately $850,000 (£540,000).
EnerMech’s regional director for Asia Pacific, John Guy, said: “This is an important strategic contract win as it represents our first PPU contract in China and also the first time we have worked on behalf of Hanas.
“China is a key territory for future EnerMech growth and we have spent $12 million (£7.7 million) investing in the latest equipment which allows quick mobilisation across the Asia Pacific region.
“We have placed a high importance on building a strong relationship with our Chinese partners, QPOC, and being able to call on their excellent local support is a big attraction to clients who value a quick turnaround and 24-7 support.
“This paves the way for further contracts which will establish EnerMech as an important provider of PPU services in this important market.”
EnerMech is represented in China in Qindao, Shenzhen and Tianjin.
EnerMech have been awarded a £6.6 million contract by Apache North Sea Ltd to supply and install four new Blow Out Preventer (BOP) handling cranes on the Forties Alpha, Bravo, Charlie and Delta platforms.
The project, which will deliver four Stahl cranes and is expected to be completed by Q1 2013, will be serviced by a dedicated engineering team from EnerMech’s Aberdeen-based cranes division.
The contract award builds on a number of existing multi-million pound crane operations and maintenance contracts held by Aberdeen based mechanical engineering company EnerMech and represents a significant investment in the offshore infrastructure owned and operated by Apache.
The crane replacement programme was developed in partnership with Apache who recognised the need for improved integrity to meet their operational demands as well as satisfying key elements of the Health and Safety Executive’s KP4 programme.
The crane upgrade programme will deliver to Apache an extended lift capability for BOP systems, improved material handling capacity and enhanced safety offshore.
EnerMech cranes and lifting director, John Morrison, said: “This is the largest capital equipment order received by EnerMech to date and we are delighted to be working in partnership with Apache to upgrade the Forties assets.
“EnerMech’s business model, as an integrated mechanical services provider, means operators like Apache can benefit from cost and operational efficiencies offered by a multi-disciplined single source contractor.”
Apache have sourced a number of EnerMech services, ranging from rigging and lifting, shutdown services including nitrogen purging/leak testing, bolting and onsite machining, through to valves, and as a result have minimised supplier agreements.
EnerMech has been awarded a flange management and nitrogen/helium leak testing contract on the Montara Venture FPSO in Singapore.
The workscope which is currently ongoing is carried out on behalf of field operator PTTEP Australia Pty Ltd at the Jurong shipyard where the ship is undergoing conversion work.
On completion the vessel will consist of a four-level 750ft wellhead platform and will be moored in the Montara field in the Timor Sea 400 miles off Darwin, northern Australia.
Efficient cost control, the availability of new equipment following a £10 million investment to support EnerMech’ growing Asia Pacific business, and utilising our SIM software system, were factors in securing the project against stiff competition.
International oil and gas industry training provider EnerMech today announced the launch of a suite of e-learning courses.
Through a fully interactive Learning Management System (LMS) clients can access a range of courses from any location worldwide, including offshore installations. The LMS is accessed through EnerMech’s website and features health and safety, quality, and technical modules.
This is the next step in EnerMech training division’s growth and will allow clients to benefit from a new approach to training and competence. The e-learning can be provided as stand-alone modules or can be incorporated into a blended approach of theory-based, practical and simulated programmes.
This move toward a new future in training will result in better learning outcomes for delegates and will support clients in relation to reducing risk through having personnel properly trained.
Delegates are assigned log in details by a dedicated member of EnerMech’s training division. They may be assigned a single module or a suite of courses designed to deal specifically with their competence requirements. Clients can then access an integral dashboard facility which provides up to the minute reports on how each e-learning delegate is progressing through the training modules. EnerMech’s Director of Training, Joe O’Kane said he welcomed the opportunity to expand the way EnerMech delivers competence and training solutions.
“We see our approach of being able to offer a blended training solution through a combination of e-learning, classroom, practical hands-on and simulated training as a positive development for our clients. We are providing a robust portfolio of training which our clients can access easily both in the UK and internationally.”
“We believe the quality of our training is first class and the e-learning modules are on par with and compliment what we already provide.”
Chris McGeehan, a Commercial Procurement Buyer at EnerMech, was asked this week to be part of a future edition of Aberdeen College’s prospectus.
The prospectus will guide students in their choice of course by showing them potential career paths to fit their personality type. Former college student Chris will be featured as a representative for the “Business” type personality.
“It was such a surprise to get the phone call from Aberdeen College” said Chris, about the feature.
“I feel quite privileged to be chosen out of all the students who have attended the college over the years.
“I believe that my contribution will encourage more people to go to college and learn and [then] appreciate the necessary skills and knowledge they will gain from Aberdeen College, as I do.”
Shirley Smith, HR Director for EnerMech, said: “We are delighted to have recruited Chris from Aberdeen College, which offers a good variety of courses to support our business.
“Aberdeen College provides well qualified people, which are essential to help us grow our business. Chris’ training gives him a good understanding across a range of business areas. This allows him to thrive in our procurement department.
“Chris not only has to negotiate good prices from our suppliers, he also has to build long term relationships with key providers, assisting us in providing a competitive service to our customers.
“We hope Chris will grow and develop with the business and play a key role in the company.”
For information on current vacancies, please see: http://www.enermech.com/latest-vacancies/
Mechanical engineering group, EnerMech, has opened a base in Bristol and plans to recruit up to 20 engineers in the next 18 months.
EnerMech is targeting the south west of England and south Wales in a recruitment drive to maintain an international expansion programme which has seen the firm grow to a workforce of 1000 only three years after start-up, with plans to add another 400 staff in the next year.
With oil and gas industry firms experiencing an ongoing skills shortage, EnerMech believes by tapping in to the rich industrial and engineering heritage of Bristol, Avon and South Wales, that it can attract vital new engineering talent.
The first five engineers will join the company in early 2012 at the newly opened base at Bristol Business Park and chartered engineer John Truscott has been appointed engineering manager and will oversee operations.
EnerMech provides a range of engineering services to the global oil and gas industry, including cranes, lifting, valves, hydraulic equipment, equipment rental and training provision.
Headquartered in Aberdeen, the company has bases in Great Yarmouth, Norway, UAE, Singapore, Indonesia, China, Africa, USA and Australia, and has a number of acquisitions planned in 2012 in Asia and Africa.
EnerMech UK Country Manager, Stuart Smith, said: “Engineering competence and technical capability have been key to EnerMech’s success and forms the foundations of its future.
“To continue to grow and extend our international footprint, it’s important the company attracts the right kind of engineering talent. Bristol was chosen due to its connection with a number of engineering industries, its heritage and its catchment area remote from Aberdeen where we have a skills shortage in key disciplines.
“We are in the process of hiring five engineers to kick start the Bristol facility and envisage that will grow to around 20 within the first 18 months. Once the engineering capability and capacity is proven, the Bristol base will grow organically and make an important contribution to the future of the company.”
Mechanical engineering services company, EnerMech Ltd, will finish the year with a 100% increase in sales, with 2011 turnover expected to top £103 million compared to £49.5 million last year.
The Aberdeen based company forecast for 2011 will deliver a £10 million profit (EBITDA*) and said turnover next year would increase to £142 million with profits expected to double to £20 million.
The company also announced that Lloyds Banking Group has agreed to provide additional funding of £20 million, which will be used to support further investment in more equipment and facilities.
EnerMech managing director, Doug Duguid, said: “We have invested over £60 million in facilities, equipment and five acquisitions since mid 2008 and that investment will deliver £10 million of EBITDA this year. This included acquiring and refurbishing our Aberdeen headquarters, and establishing an international footprint with 17 additional facilities across the Eastern Hemisphere, all of which is now beginning to deliver significant growth and profitability.”
Group results for the last two years show EnerMech accrued losses of over £13.7 million - of which £5.1 million was preference share interest and goodwill amortisation as well as a further £3 million of nonrecurring costs. Accounts filed today at Companies House reflect these numbers.
Mr Duguid added: “It means that the loss at EBITDA level for the past two years was £5.9 million which is entirely reasonable, given the accelerated rate of growth, other factors including deal and integration costs associated with five strategic acquisitions, and registering and establishing new companies in nine overseas territories, which accounted for costs of £3 million over the same period.
“Not surprisingly, for a business with some start-up business lines and rapid growth in overseas territories, it has taken time to become profitable, but it is encouraging to see that since early 2011 the business is now delivering sustainable profitability consistently in excess of £1 million EBITDA a month.
“We are pleased with the progress we have made in our first three years and our continued investment in the business, and the success of our strategy to provide integrated mechanical service solutions to our customers, has secured us a number of long term contracts across our 18 international bases. This has created over 580 new positions this year alone, 340 of them in the UK – we now have over 1000 staff globally and expect that to grow to at least 1400 in the next year.”
The new agreement with Lloyds Banking Group extends the revolving credit facility of £20 million originally provided by Lloyds in April 2010 to £30 million, with an option to grow the facility to £40 million in line with the company’s profitability. If the full facility is utilised this would bring the debt provided by the bank to a total of £44 million.
Mr Duguid said: “We have had great support from Lloyds Banking Group over the first three years and the fact that we have achieved our profitability targets this year demonstrates the potential going forward and paved the way for this additional lending facility.
“In addition to the further capital we now have available for new equipment and facilities, Lime Rock are also prepared to invest further to enable us to continue growing and we are mulling over a number of potential acquisitions, both in the UK and elsewhere, which will take EnerMech to a whole new level."
Andrew Robertson, relationship director at Lloyds Bank Corporate Markets in Aberdeen, commented: "We are delighted to have put in place this significant increase in banking facilities to support Doug and his team build on the success of this year. This is a fast-growing Scottish business with excellent opportunities, both at home and overseas."
Reflex Marine has appointed mechanical engineering specialist, EnerMech AS, as the Accredited Service Centre in Norway for FROG and TORO personnel carriers.
Reflex Marine’s FROG personnel carrier has become widely adopted in Norway. Customers of FROG & TORO personnel carriers in Norway now have a local manufacturer-accredited partner to provide them with the highest standard of service and responsiveness. One of EnerMech AS’s main business lines is the operation, inspection, maintenance, design, engineering and management of offshore cranes and lifting projects.
Trond Møller, General Manager of EnerMech AS, said: “This new partnership with Reflex Marine strengthens our offering in the cranes and lifting arena of the Norwegian energy industry. It will improve the way we implement and manage marine transfer operations. We will help customers to select the right equipment, deliver training on transfer operations, and ensure that a proper inspection and maintenance programme is in place for the lifetime of every carrier.”
Reflex Marine's business manager for Europe, Robin Proctor, said: "When a customer wants to have a FROG or TORO serviced or inspected, or wants to upgrade, they now have a local expert in cranes & lifting, with a sound grasp of local compliance issues, to turn to. Operators can now benefit from an even better level of service for their FROG or TORO device, including frame agreements, training courses conducted in Norwegian, a comprehensive locally held stock of parts, and local inspection and maintenance services which are carried out by manufacturer-trained technicians."
Mechanical engineering services group, EnerMech, has been awarded a £1 million (NOK 8.9M) crane services contract by Talisman Energy Norge AS.
EnerMech AS, based in Stavanger, will deliver services to all Talisman’s Norwegian assets over the next six years. The three year (+3 year option) contract covers crane inspection, maintenance and modifications on the Gyda, Yme and Varg A assets.
EnerMech AS general manager, Trond Møller, said: “The critical success factor for us was the good working relationship between ourselves and our points of contact in Talisman. In addition to having the quality systems in place required to fulfil this contract, our strong safety track record and personnel competency were key service differentiators for EnerMech.”
EnerMech has made a multi-million pounds investment in infrastructure to be able to service pan-European contracts for companies with crane operations in multiple locations and jurisdictions.
Doug Duguid, managing director of EnerMech, said: “EnerMech’s international footprint enables us to deliver cost benefits to our global customers through cross border contracts. This versatile approach to servicing contracts also allows us to share best practice in terms of safety and operational efficiency between the UK and Norway.
“We are finding many of the large operators are interested in single cross-border contracts which reduce administration and improve efficiency and we are leading the way in delivering a fresh approach which meets 21st century requirements.”
