ABERDEEN-based subsea engineering specialist Ashtead Technology has highlighted the potential for oil and gas activity to increase as the UK looks to limit its reliance on imports amid the fallout from the Ukraine war.
Chief executive Allan Pirie said the company is well placed to support the “continued strong demand from offshore wind and the anticipated pick-up in spending in the oil and gas industry given the increased focus on energy security”.
Mr Pirie made the comments in a trading update issued on the day the UK Government published its Energy Security Strategy. This is intended to help the country enjoy greater control over the energy it needs while supporting the drive to achieve net zero.
The strategy was launched following the surge in oil and gas prices that was fuelled by the recovery from the pandemic, and which gained fresh impetus after Russia launched its attack on Ukraine in February.
Prime Minister Boris Johnson has made clear he thinks the UK should increase domestic oil and gas production to help deliver the strategy.
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“As even the most evangelistic environmentalist would concede that we can’t simply pull the plug on all fossil fuels overnight without the lights going out all over Europe, we’re going to make better use of the oil and gas in our own backyard by giving the energy fields of the North Sea a new lease of life,” he noted in the foreword to the strategy yesterday.
Oil and gas firms operating in the North Sea have enjoyed a big boost to their profitability as a result of recent market developments. Rises in oil and gas prices have encouraged some to increase activity.
Ashtead Technology said it continued to perform strongly in the first quarter of 2022, supported by good ongoing customer demand across both offshore wind, and oil and gas, end markets.
Mr Pirie noted:”While we are mindful of uncertainty arising from the current geopolitical
environment and inflationary pressures, mitigated by tightening market conditions and increasing
pricing, we remain confident of making further progress in 2022.”
Ashtead Technology floated on the Aim stock market in November last year.
Shares in the firm closed up 2.5p at 247.5p yesterday. That compares with a closing price of 162p on the first day of trading.
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