Scotland business

Global Energy Group posts fall in profits

Nigg Energy Park Image copyright Global Energy Group
Image caption Global owns Nigg Energy Park on the Cromarty Firth

Offshore engineering and fabrication firm Global Energy Group has reported a sharp fall in profits.

The Highlands-based company saw pre-tax profit drop by more than £11m to £3.1m in the year to the end of March.

Turnover fell from £376m the previous year to £292m.

Global, which owns Nigg Energy Park on the Cromarty Firth, said its figures showed "a strong performance" in a challenging market affected by falling oil prices.

The group's workforce was cut by 1,000 to about 3,500 during the year.

Group chairman Roy MacGregor said: "Like many companies in the north and east of Scotland, we are affected by spending decisions linked to the oil price.

"We were able to successfully downsize the business during the year and achieved a profit despite restructuring costs."

Mr MacGregor said cash generated during the year was allocated to further geographic and market diversification, including growth in the Australian LNG market and UK chemical sector.

He added: "We have mixed feelings about the immediate future where we have growth targets in some markets but expect Capex-linked (capital expenditure) business in the UK oil and gas market to be difficult."

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