Leading international energy logistics company, Peterson Energy Logistics (“Peterson”), today announced its consolidated results for the 12 months ending 31st December 2019.
Revenue was up by 4% year-on-year at £256 million, with an operating profit of £1.1m, up £6m on 2018.
In line with strategic development around the Company vision and values, and working with their passionate and enthusiastic team, Peterson saw positive international developments in its core oil and gas market driven by new Operator contract awards and renewals, and a number of service companies, together with significant growth in our international businesses and underlying growth in activity levels. There were also new contract awards in the broader energy and industrial markets, including renewables and decommissioning.
Peterson has continued to invest heavily in the future, focusing on opportunities to bring collaborative operating models to clients, both in the North Sea and internationally. There were significant recent investments across the business of more than £6m, including the commissioning of a new £3m 6,000mt MGO fuel facility in Aberdeen Harbour, continued investment in developing international business and in start-up costs for new contracts. The investment in technology, through the development of the Streamba business and its product VOR, and Peterson’s proprietary end-to-end cargo management tools continued, with the Foresight tool developed to aid planning and provide a platform for collaboration and sharing.
Headcount within Peterson reduced by 10% in 2019, to 1027 employees. This was due to several factors, including retirements and employees transferring to other parts of the Peterson and Control Union Group business. Over 500 people are still employed in the Aberdeen area.
Peterson worked in partnership with a number of operators to launch the CNNS Pool (Central & Northern North Sea) in 2017, and this concept for pooling with vessels and sharing other resources has proven strong, with the operators renewing for the second time in 2020. This collaborative approach is based on Peterson’s successful SNS Pool model, established in 1993 in the Netherlands for nine operators, with good opportunities to extend to additional operators in both local and overseas.
Commenting on the Group’s performance Erwin A. Kooij, CEO of Peterson said:
“Peterson has delivered a positive performance in what has been a challenging time in all markets, and especially in the energy sector. With an industry that is looking for a new way of organising the supply chain in a more efficient and flexible way, we see an increasing global interest for our proven 4PL concepts and unique technology.
“Our portfolio of businesses, including 8020 Procurement Services Ltd, Peterson Freight Management, LS Customs, Peterson Chemicals, Peterson Trinidad & Tobago, Streamba and Core29, have performed and developed well over the period and supported the growth and delivery of our turnkey services approach to our customers.
“In response to COVID-19, we have seen that by adjusting our methodologies and resources, resizing our business for new circumstances and having had the strong vision to invest continuously in technology, we eased our transition towards homeworking. Our HSEQ team also moved quickly to implement our new life-saving rule on social distancing across our business.
“Our clients continue to seek efficiencies across the supply chain and we are well placed to respond to this with new, innovative solutions that enable collaboration, pooling with vessels, sharing of resources and materials management. We see our clients embracing our new working models, especially in our international markets.
“We’ve seen strong demand for our decommissioning services across the UK. We have supported the completion of the 12,000 tonne Buchan Alpha structure at our purpose-built facilities at Dales Voe in Shetland; and we are facilitating the decommissioning of the Leman platform from our site in Great Yarmouth.
“To allow a more flexible approach to serve our UK Southern North Sea business and support our Great Yarmouth operations, our business in Lowestoft is fully established and operational, with full integrated services provision including quayside, warehousing and fuel supply.
“Our 4-PL logistics model of deploying our inhouse technology in order to lead the industry’s energy logistics to a digital and sustainable future, together with our management and planning capability, has gathered pace and we see good opportunities internationally, with an investment of around £2m in the period exporting our logistics models to new territories. We support customers in the Mediterranean, in the South Americas, Caribbean, North Africa, Middle East and in Asia Pacific.
“Our people are fundamental to our ability to deliver operational excellence and we remain committed to attracting, retaining and developing the right people. While our headcount reduced, due to several factors, including retirements and employees transferring to other parts of the Peterson and Control Union Group business, we currently employ 500 people in the Aberdeen area.
“Keeping our people safe remains our number one priority, and we will work hard to maintain our sector-leading safety performance. We are proud that our personal responsibility and core values enable a culture of care within our company, enabling all our people to feel comfortable and confident to challenge unsafe behaviours and stop the job.“The Peterson and Control Union Group, a family-owned company, reported a robust overall global Group result in 2019, and as we celebrate our centenary in 2020, our strong balance sheet, without significant loan capital which is less than 3% of our group total balance sheet, enables us to take a long view, invest for the future and allows our clients and employees to trust in Peterson.”