OIL services firm STATS is on course to grow North American revenues by around 70 per cent as it benefits from strong activity in markets such as US shale amid challenging times for sector players in the North Sea.
The Aberdeenshire-based firm said sales revenues in the US and Canada are expected to increase to £13.2m in total in the current year from £7.7m last time.
The growth has been particularly strong in the US with STATS describing market conditions are buoyant.
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The increase in the crude price since late 2016 has encouraged firms to invest in the kind of upgrade projects that were shelved amid the downturn triggered by the oil price plunge from 2014 to 2016.
STATS is confident enough about the prospects for the US market to have approved a £2m investment in support of a push for continued growth in North America.
Stephen Rawlinson, regional director for the Americas noted this will fund a move to a bigger base in the Canadian city of Edmonton, in which it could complete orders more quickly.
The growth in sales follows moves by STATS to internationalise its business, with backing from the BGF investment business.
While some oil and gas firms have resumed spending on new North Sea projects in recent months cost control is still a priority for firms in the area. The supply chain remains under pressure.
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STATS grew total revenues by 44% annually in 2018, to £43.4m from £30m. The company made £2.5m profit before tax after losing £0.8m in 2017. Sales in the UK increased by just 2% , to £8.9m.
STATS made no comment about trading in the North Sea yesterday.
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