The 147 year old company, which also has interests in shipping, logistics, seafood and industrial services, has booked operating profits of £21 million for the year ended December 31, 2012, up from £15m in 2011.
On a pre-tax basis, profits rose to £20.4m across the group last year from £13.3m in 2011, while turnover increased to £348.3m from £295.9m.
Denholm, which employs 75 of its near-4000 staff in Glasgow, said the earnings growth was driven by its oilfield division in Kazakhstan, the Middle East and the UK.
The division, which employs around 3000 staff at peak times and turns over more than £139m, booked operating profits of £13.3m in a year when it invested £8m in a 500-man camp for staff in Kazakhstan and acquired the Jolibar Metal Works in Aberdeen.
It also built a fabrication yard in Abu Dhabi.
Chairman and chief executive John Denholm said the company's oilfield services division had been the "motor" of the business in 2012. He expects that to continue as global energy projects deferred at the time of the financial crises continue to come on stream.
Mr Denholm said: "We have been building this business up over a long time and it all came right.
"Our Kazakhstan business, which does oifield maintenance work, undertook what I think was the biggest shutdown in Chevron's history in Tengiz, so it had a big year with that.
"Our Middle East business, which we have been building up, at long last moved across the line and started making a contribution.
"Here in the UK, Aberdeen is probably the booming part of the UK economy as the oil industry in the North Sea adjusts to the new reality of the $100 to £120 barrel, so we have seen a lot of demand in Aberdeen. That was the motor behind our business last year.
"The oilfield services result was up £13m from the previous year - part of it growth, part of it the turnaround from loss to profit in the Middle East business as it started operating towards capacity."
With growing global demand for energy, and the prospects for North Sea looking up thanks to oil prices and the ability of new technology to extend the life of mature fields, Mr Denholm expects the firm's growth in oil services to continue.
Group managing director Michael Beveridge said Denholm was actively considering acquisitions to boost its presence in the sector further.
He said: "We have some opportunities we are looking at the moment to grow the business again, both in the-north east and further afield. Yes, acquisitions are definitely on the agenda."
Mr Denholm said other parts of the group had performed well in 2012, but noted that its UK operations reflected the patchy performance of the domestic economy.
Denholm's industrial services division, which has interests in painting, scaffolding, industrial cleaning, shallow water cabling and recruitment, saw operating profit fall by £1.1m in 2012. However, it said this was an improvement on the previous year as the loss on a major contract in 2011 was not repeated.
The company's seafood operation, which includes fishing activity and fish processing, improved its operating profit by £200,000. But with no exceptional items to match the £12.3m gain it made from the sale of the Northbay Fishing Company in 2011, the reported result fell back to £12.2m.
In shipping, the sector on which Denholm founded its business, the company improved its profit position by £300,000 thanks to an improved performance by Anglo Eastern, while in logistics a £500,000 improvement was made amid strong showings by its ship agency and terminal operations, as well as the impact made by its £6m acquisition of Hamilton Shipping in Ireland.
Denholm employed an average of 3969 staff in 2012. In Scotland it employs up to 500 staff, depending on seasonal factors, with the bulk of its Scottish workforce engaged in seafood. The seafood arm, which has its main operations in Peterhead and Fraserburgh, employed 146 staff on average in 2012.