Energy services giant returned to profit before $1bn takeover
A UK energy services giant returned to profit and created hundreds of jobs in the year before being acquired in a deal which valued it at more than $1bn (£737m).
OEG Energy Group, which is headquartered in Aberdeen, has reported a pre-tax profit of $4.4m for 2024, having posted a pre-tax loss of $14.9m in 2023.
New accounts filed with Companies House also show its revenue jumped from $320.5m to $537.3m in the year while its headcount also grew from 1,052 to 1,361.
The results come after US investment group Apollo agreed to buy OEG Energy Group in March.
The group provides services for offshore oil, gas and wind production, has operations in 65 countries and was founded in 1973.
It also owns and operates one of the world’s largest fleets of cargo-carrying units – containers designed for use in the offshore energy sector.
Apollo had agreed to acquire a majority stake in the group from Oaktree Capital Management.
Oaktree and other shareholders retained minority stakes in the group.
The accounts filed with Companies House have also revealed that the group’s previous owners shared a huge interim dividend of £374.2m before selling up.
‘We exceeded our strategic objectives’
In a statement released in February previewing the group’s financial performance, OEG Energy Group’s CEO John Heiton said: “2024 was another strong year for OEG as we exceeded our strategic objectives and delivered further growth.
“The focus remains to build a more material business that is diversified across complementary energy markets, positioning itself to support both energy security and the energy transition in offshore activities.
“In this regard, the strategic milestone of more than half of group revenues being derived from offshore wind shows how rapid the scaling of those services has been.
“Furthermore, our geographic expansion continued as we entered new growth markets like South Korea, Japan and the Baltic Sea which should yield long-term opportunities for OEG as we continue to export our service offering.
“In parallel, we continue to invest in our CCU fleet and support capabilities, to ensure our customers ongoing production of energy.
“With energy security a priority topic for governments and societies around the world, we are proud to support our clients in servicing critical infrastructure that supports those socioeconomic objectives.
“As we deliver our strategic growth, we increasingly recognise how our services collectively support the delivery of our purpose, which is to serve as a trusted partner for our customers and support secure, cleaner, safer and more efficient energy production.
“So, as we diversify into complementary markets, we are redefining our brand in 2025 to One Energy Group reflecting the unity of our business, our strong foothold and expertise across the global energy sector and our commitment to the markets that we serve.”
In February, Heiton told CityAM that the UK’s “confused” energy strategy is more about slogans than results and risks hollowing out the local economy in Aberdeen.
The CEO added the government is adopting a jumbled approach to growing the economy that has jeopardised the UK energy sector’s regional dominance.