IN a welcome boost to the energy sector in the north-east, Aberdeen-based EnerMech yesterday announced its forecast that 2017 trading revenues will increase by nearly £100 million to around £360m.

The global provider of integrated mechanical, electrical and instrumentation solutions revealed that its 2016 revenues rose by almost £10m on the previous year to £263.7m.

The company’s annual accounts to December 2016 show profits up by £4.4m to £24.8m and it expects 2017 profits to increase further to around £42m.

Figures lodged at Companies House show EnerMech’s UK division had revenues of £128.3m, which is up from £123.7m the previous year, while pre-tax profits more than doubled to £14.4m.

EnerMech employs 3000 staff across 40 locations in the UK, Europe, the Middle East, Caspian, Asia, Australia and the Americas, and has evolved into one of the world’s leading integrated engineering contractors, continuing to serve the energy sector while expanding its service-offering into new sectors, including renewables, LNG, defence, power, infrastructure and petrochemicals.

The acquisition in January of electrical and instrumentation specialist EPS Group, which has a presence in Australia and the US, expanded the group’s capability beyond its original mechanical focus and has provided EnerMech with access to large-scale infrastructure projects and entry to the metals and utility sectors.

EnerMech is enjoying significant growth in its US business, buoyed by success on liquid natural gas pre-commissioning contracts and in the petrochemicals sector, and it expects 2017 revenue in the Americas to double to more than £60m and staff numbers to increase from 150 to around 400.

The company recently announced it had secured a five-year contract to provide hose and hose-fittings supply and services for Shell’s Prelude floating liquefied natural gas facility in Western Australia.

EnerMech chief executive officer, Doug Duguid, said: “We remain focussed on increasing our presence in international markets and strengthening our reputation in our core energy sectors, while building on the significant inroads we have made into other important markets such as infrastructure and utilities.

“We have focussed on developing fresh ways of working and introduced innovative new business models for clients who are seeking a different approach in light of the changed oil and gas environment.

“Prudent cost savings, a strategic expansion into new sectors, and carefully targeted acquisitions, underpin what is an encouraging set of financial results.

“EnerMech is constantly evolving and our approach to providing truly integrated engineering services means we can remain agile and responsive to client requirements, which puts us in a strong position to maximise growth potential in the years ahead.”