Finance News

Pipeline Specialist STATS Group Post 9% Revenue Increase

Pipeline technology specialist STATS (UK) Ltd delivered revenues of £42.5 million ($60.3m) and recorded EBITDA* earnings of £6.5 million ($9.2m) despite the challenges of Covid-19, its latest annual accounts show.

Revenues increased by £3.4 million ($4.8m), up from £39.1 million ($55.4m) while earnings rose by £0.9 million ($1.3m), up from £5.6 million ($7.9m), according to trading results for the year to 31 December 2020. The group’s pre-tax profits rose from £0.2 million ($0.28m) to £1 million ($1.4m).

Based in Kintore near Aberdeen, UK, STATS principal activity is the provision of pressurized pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries.

The company said the strong performance was largely due to continued investment in international infrastructure which has established responsive regionalized management teams and localized workforces, strategically located close to key global markets.

The annual accounts noted that 88% of revenues were generated out with STATS’s home UK market, with significant breakthrough in the North American pipeline sector, reflected in revenue growth in the USA of 51%, up from £8 million ($11.3m) to £12 million (£17m).

To support further USA growth, STATS recently moved its operations to larger premises in Houston, while increased product sales and localized fabrication capabilities in Edmonton delivered record trading revenues in Canada of £6.7 million ($9.5m).

STATS Group Chief Executive Officer, Leigh Howarth, said: “Our long-term investment in regional teams and infrastructure allowed us to be much more resilient to the economic and social challenges posed during the peak of the Covid-19 pandemic when many national borders were closed and movement was restricted.

“Not only has the strategy to localize been vital in building resilience during this most challenging period, but it gives us the platform for a bright, scalable future and is testament to the sustainability of our business.”

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