LEADING UK energy services group, Global Energy Group (GEG), has experienced a significant shift in its revenue composition, reporting a 21% increase in revenue for 2023. Notably, the group achieved an equal split, with 50% of its revenue stemming from low carbon activities and the remaining 50% from hydrocarbon operations.
The boost in revenue was primarily driven by substantial growth in wind and nuclear sectors within the low carbon energy domain. Despite the divestment of the engineering and construction business, Global E&C, GEG continued to enhance its support for oil and gas clients, focusing on emission reduction and facilitating the transition to a net-zero environment.
Gordon Farmer, GEG’s Chief Financial Officer, highlighted the strategic impact of the divestment, stating, “The divestment of Global E&C has significantly strengthened the group’s balance sheet and reduced working capital demands simultaneously. The injection of additional capital is at a pivotal time for the group as we look to develop our business to support future market demands in the energy sector.”
In the low carbon sector, GEG’s involvement in large-scale wind and nuclear energy projects, including Hinkley Point C and the SeaGreen marshalling offshore wind project, contributed to the robust financial performance. The creation of the Global Wind Projects business and its inaugural full year of trading further bolstered the group’s position.
The recent award of Green Freeport status to GEG’s Port of Nigg Cromarty Firth base is viewed as a significant milestone. Chairman Roy MacGregor commented on the accomplishment, stating, “It’s been a momentous year for the group, with January’s award of Green Freeport status to Port of Nigg. I think it’s safe to say that the facility is firmly established as Scotland’s premier offshore renewables hub and multi-energy source user site.”
GEG’s commitment to supporting the oil and gas sector’s transition was evident in the improvement of its backlog of subsea and topside fabrication projects, providing a sustainable trading platform for the coming year.
The group’s directors emphasised the importance of diversification across regulated markets, achieving resilience in revenue by evenly splitting activities between clean energy and oil and gas sectors. This approach positions GEG as a resilient business capable of navigating economic and political influences.
Chairman Roy MacGregor expressed satisfaction with the positive financial results, stating, “It’s another step on the journey our directors have committed to of creating a sustainable, resilient business to service both the evolving low carbon and existing hydrocarbon markets.”
As GEG looks ahead, the Green Freeport award is expected to attract further investment, create jobs, and contribute significantly to the UK government’s net-zero aspirations. The group remains focused on continued investment in facilities, capabilities, and workforce to maximise opportunities and build a sustainable business supporting a diversified market and customer base in the long term.
