• Text size      
  • Send this article to a friend
  • Print this article

Craig Group hails investment after boost in earnings

CRAIG Group, the oil and gas services firm employing 1000 worldwide, has reported a 13% rise in operating profits to £14.8 million in the year to April 2012.

Turnover at the Aberdeen-based and family-owned business rose 10% to £123.3m, while net earnings were up 11.5% at £21.3m.

The group invested more than £28m, almost twice the previous year's spend, mainly in continuing modernisation of what it says is "the largest British wholly-owned fleet engaged in the UK offshore industry".

Founded as a fishing venture in 1933 by George Craig, and reaching a peak of 23 vessels in 1975 before refocusing on the energy industry, the group specialises in offshore support, underwater survey, emergency response and rescue, and oilfield procurement.

Douglas Craig, managing director and grandson of the founder, said results across all three divisions had been healthy. He said: "The UK oil and gas sector continues to flourish in what is still very much a fragile economic period and as a result we have been able to invest in vessels, people, premises and services."

Mr Craig added: "The total investment of £215m in new vessels since 2003 has given us one of the safest and most modern fleets operating in the North Sea which has helped us secure new business, attract the best maritime skills, improve safety and reduce our impact on the environment."

The fleet is operated by the group's North Star Shipping division, where turnover increased by 9.7% to £80.3m. Four new vessels have been completed during 2012 creating 100 jobs in the marine industry.

Turnover at Craig International Supplies (CIS), the group's oilfield procurement division, rose by 10.3% to £37.6m.

Mr Craig said: "We are particularly excited by the potential of CIS's global strategy, which will see the division moving into new markets including West Africa, Central Europe and Australia over the next year."

He said its unique online catalogue "ebuy" was helping customers consolidate their buying process through the use of e-commerce.

Craig Group maintained an active social responsibility strategy with donations to charities and other causes totalling £375,000 in 2011-12.

Mr Craig said: "Our corporate social responsibility activity is centred around supporting young people and the disadvantaged in the areas of education, the arts and sports. This underlines our commitment to the communities in which we operate."

The group has offices in Houston and Cape Town. It also owns the Kings Links Golf Centre in Aberdeen.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

125599