Wood Group has been awarded a new five year framework contract with a five year extension option, valued at approximately £85 million, by Babcock International to deliver industrial services to a number of its sites across the Group.
The contract will be delivered by WG PSN in the UK via its industrial service line business - Wood Group Industrial Services - which maintains Wood Group PSN's position as the leading industrial services supplier in the UK marine sector.
More than 400 people will be engaged on the contract. The contract builds on Wood Group Industrial Services' 15 year relationship with Babcock International.
Surface preparation, application of protective coatings, scaffolding, insulation, rope access, cleaning and fire sentry services will be deliveredunder this framework contract.
Hugh Pelham, managing director of WGIS, said: "Securing this new contract to provide industrial services is testament to our track record in the marine sector and relationship with Babcock.
"We have a strong history of delivering marine projects safely, to schedule and to budget for Babcock International. I look forward to building on this across further Babcock Group sites, and successfully continuing our long-standing relationship with Babcock International."
In 2015 Wood Group Industrial Services secured over £215m of new contracts.
Wood Group has secured a new five year framework agreement with Valero Energy, an international manufacturer and marketer of transportation fuels, petrochemical products and power. Effective immediately, Wood Group Industrial Services (WGIS), Wood Group PSN's industrial service line business, will provide services to the onshore Pembroke refinery in south west Wales.
The contract signifies an important expansion for Wood Group into the UK petrochemical sector. WGIS will deliver surface preparation and application of protective coatings under the contract, which has a one year extension option.
Hugh Pelham, managing director of WGIS said: "WGIS has the broad capabilities and experience that positions us well to further extend our expertise into the downstream process and energy market. This is demonstrated by this contract win with Valero Energy, where our focus will be working in partnership with our client to deliver effective and efficient services to enhance the integrity of the asset."
In 2015, WGIS secured more than $300m of new contracts.
Back to topWood Group Industrial Services has been the leading marine painting contractor for the Royal Navy for the past 20 years culminating in being awarded the contract in 2009 through Ship Support Services to provide all of the painting services on the new build project constructing the Royal Navy's latest warships, the two Queen Elizabeth Class aircraft carriers. The lead vessel, HMS Queen Elizabeth is due to enter service in 2020 after two years of intensive sea trials.
At the end of 2015 Wood Group Industrial Services was also contracted by BAE Systems working at Portsmouth Dockyard to provide a range of painting services on HMS Victory, the famous flagship of the First Sea Lord, as part of her major refurbishment. The vessel is qwned and maintained by The National Museum of the Royal Navy at Portsmouth Historic Dockyard.
Both vessels have their place in the record books. Displacing 3,500 tonnes and launched in May 1765, HMS Victory at 250 years old is the World's oldest naval ship in commission, whereas HMS Queen Elizabeth will be the largest warship ever built for the Royal Navy at 65,000 tonnes.
HMS Queen Elizabeth has a length of 280m compared to just under 70m for HMS Victory. Nevertheless as a sign of the times, the complement of HMS Queen Elizabeth is set to be a crew of only 733 compared to 850 that were serving aboard HMS Victory when she was at sea in the early 19th Century.
So, while both contracts were running, in 2015 Wood Group Industrial Services could proudly claim to have been providing specialist painting services on warships spanning over 250 years of Royal Navy history.
Back to topGateshead's Wood Group Industrial Services boost sales by 29% on the back of Royal Navy deals
Additional work on Royal Navy aircraft carriers has taken the Gateshead firm to turnover topping £136m
A buoyant supply of work across the marine, offshore and energy markets has steered a Tyneside industrial services firm to record turnover of £136.9m.
Accounts for 2014 published by Gateshead based Wood Group Industrial Services - formerly Pyeroy Group - reveal a successful year with a 29% sales lift, breaking its own record last year of £106.5m.
Pre-tax profits at the company, which also operates a subsidiary in Ireland, also rose by 45%, from £6m to £8.7m, representing a return on sales of 6.4%.
Net assets at the business also increased from £22.4m to £29.2m, while year-end cash balances were £28.1m compared to the previous year's £16.6m.
Headcount grew significantly during the accounts period, from an average of 1,595 employees each month to 2,076, predominantly within production which had 469 more staff - a lift of 30%.
An analysis of the turnover showed UK sales accounted for almost all turnover with £134.89m, with European sales accounting for £2.04m.
The firm, which now forms part of the John Wood group following a buy-out in 2013, provides scaffolding and painting among a range of other services to industries including the rail, offshore energy, marine, utility, nuclear, chemical and process sectors.
Established in 1973, the firm said the increased level of activity dates back from contracts in 2013, due to additional volumes of work on a series of Royal Navy aircraft carriers, including HMS Queen Elizabeth, HMS Prince of Wales and HMS Ocean, as well as new contracts secured in the process and energy sector.
The company's forward order book at the end of the year also grew considerably, from £150m in 2013 to £192m in 2014.
In a strategic report accompanying the accounts, director Hugh Pelham said: "Customer spending in the company's primary target markets - rail, offshore energy, marine, utility, process and energy - is expected to continue at comparable levels or increased levels compared with 2014.
"It is the company's intent to increase its presence in the on-shore process and energy and offshore energy markets whilst retaining a strong presence in the rail and marine sectors."
Directors did not recommend the payment of a dividend.
19:00, 24 JUNE 2015
BY COREENA FORD
Business - Brought to you by The Journal
Back to topThe Queen Elizabeth Class aircraft carriers will be the biggest and most powerful warships ever constructed for the Royal Navy. When HMS Queen Elizabeth sets out from Rosyth Dockyard it will represent the very best that the United Kingdom can deliver. Pyeroy, a Wood Group PSN company, has been working with the Aircraft Carrier Alliance and its partners to apply the latest MoD specified paint coatings during the build programme to protect and preserve this world-class carrier throughout its commission.
HMS Queen Elizabeth now afloat within the main basin at Rosyth Dockyard.
Our defence under attack
As soon as it leaves dry dock this enormous warship will come
under attack from the same elements in which it is designed to
operate. The oceans will test it with the harshest weather
and seawater environment, and operational duties will be a constant
threat to the fabric of this vessel causing wear and tear leading
to degradation and possible corrosion.
Pyeroy's 25 years of marine protective coating experience has been fully employed in developing the surface preparation and application processes used to provide the highest quality finishes throughout the vessel. The external hull, decks and superstructure are all prepared to withstand the rigours of naval operations and protect the vessel in this most demanding environment, maintaining its reliability during a lifetime of service.
Checking the defences. Paint inspection by Pyeroy Group of a major hull module.
A military alliance
Competition brings out the best in us, but there are times when we
recognise the advantages of joining forces to successfully pull
together. Pyeroy Group established a Ship Support Services
partnership with Cape, normally one of our strongest competitors,
to deliver the very best capability to the Aircraft Carrier
Alliance, providing the entire scaffold, painting and cleaning
services in support of this flagship project.
Pushing the envelope
To deliver the protective coating application requirements for the
two aircraft carriers, Pyeroy has been co-ordinating its services
across seven shipyards covering Govan, Scotstoun, Portsmouth,
Appledore, Birkenhead and Jarrow as well as the integration yard at
Rosyth. Our workforce has increased to nearly 1,000 operatives
dedicated to the QEC project and we are involved in applying over
25 different MoD specified coating systems amounting to over 1.5
million square metres of paintwork; an area slightly larger than
London's Hyde Park.
Back to top
As a result of its acquisition by Wood Group, Pyeroy Group (designated as Business Unit Six) has been allocated the industrial support services element as part of the main Service Provision contract managed by WGPSN on the Shell Northern Gas Plant facilities located at St Fergus and Mossmoran in Scotland.
Working as part of the Wood Group team since late 2013, this large work package involving the provision of scaffold and insulation services is expected to be worth between $10m to 15m per annum to Pyeroy Group.
Back to topWithin a period of three months, at the beginning of 2014, Pyeroy Group was successful in having three major, long term framework contracts for the provision of industrial support services renewed by major clients all based in the North East.
These three contracts, covering such services as scaffolding & access systems, insulation and painting services, are for Huntsman based near Hartlepool, Aesica at Cramlington and Lynemouth Power located near Ashington. In total these contracts are expected to be worth in excess of £23m over the next five years.
Back to topAs part of EnQuest's late life extension (LLX) programme on its
Thistle platform, the operator has joined forces with engineering
experts Pyeroy Group, a division of Wood Group PSN, and its
sub-contractor - engineered composite repair specialists Walker
Technical Resources to deliver a significant part of the topsides
integrity work.
Pyeroy Group and Walker Technical Resources have developed a
safer, more efficient and cost-effective solution to ensure the
long-term integrity of mature assets which is being implemented on
the Thistle field.
Using proven composite repair technology, the team will refurbish all four of the Thistle platform's stair towers which span the 50 metre height of the installation. The technology, which applies and moulds carbon fibre composite material and an epoxy resin to steel structures to make them fit for service, is an industry game changer because unlike conventional methods it does not involve welding, known in the industry as hotwork.
In addition, the lightweight composite material doesn't add any significant weight to the platform topsides. The composite repair will not corrode, and also prevents further corrosion of the underlying steelwork, while its defined lifespan of 20 years means maintenance is kept to a minimum.
While the technology has also been used offshore by Walker Technical Resources, this is the first time it has been used in the North Sea on such a scale that a specialist team has been created to manage the project.
Back to topWood Group announces the acquisition of Pyeroy Group Limited ("Pyeroy"), a provider of specialist coatings, access and fabric maintenance services to the oil & gas, marine and rail industries. Headquartered in Gateshead, UK, Pyeroy was founded in 1973 and employs approximately 1,800 personnel at eight locations throughout the UK and Ireland.
Pyeroy generated revenue and EBITA of £88.9m and £4.6m for the year ended 31 December 2012. Pyeroy will continue to be led by Hugh Pelham, managing director, and will operate within the Wood Group PSN division.
Pyeroy has an excellent track record of growth and delivery of key note projects. Their complementary range of services extends Wood Group PSN's existing range of offshore brownfield engineering & construction, operations & maintenance and decommissioning services.
Robin Watson, CEO of Wood Group PSN said: "Pyeroy has an excellent track record of supporting the operational needs of major oil & gas, marine, and rail customers and has a high quality, highly trained workforce. The acquisition of Pyeroy marks a strategic move into specialist coatings, access services and fabric maintenance which broadens our service offering to oil & gas customers. These services are particularly relevant for extending the life of existing infrastructure, and for decommissioning projects. As an example Pyeroy's expertise on the Forth Rail Bridge refurbishment, can be transferred into the Oil & Gas sector.."
"The fit is ideal, strategically," said Hugh Pelham. "We have room for growth in the oil & gas sector and we also have the skills and experience to complement Wood Group PSN's oil & gas capability. We believe that joining Wood Group will enable us to offer a broader service offering to our customers. We will be joining a Group that shares our commitment to safety and provides the highest quality service to our customers."
- Ends -
Notes to
editors:
Wood Group is an international energy services company with
around $7bn sales, employing around 43,000 people worldwide and
operating in 50 countries. We have three businesses - Wood Group
Engineering, Wood Group PSN and Wood Group GTS - providing a range
of engineering, production support, maintenance management and
industrial gas turbine overhaul and repair services to the oil
& gas, and power generation industries worldwide. www.woodgroup.com
Wood Group PSN is a global provider of pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. Employing over 29,000 people in more than 40 countries, Wood Group PSN offers high integrity, brownfield services that support customers to optimise performance, maintain production, reduce operating costs and provide integrity assurance. www.woodgroup-psn.com
Pyeroy is a privately owned, specialist coatings and access service contractor, established in 1973 and currently employing more than 1,800 personnel in eight locations in the UK and Ireland. Headquartered in Gateshead, an Aberdeen office was established this year to support its renewables, offshore infrastructure and oil & gas activities.
For further
information contact:
Carolyn Smith, Corporate Communications - Eastern
Hemisphere
Tel: +44 (0) 1224 851099, email: Carolyn.smith@woodgroup.com
For investor and
analyst enquiries:
Nick Gilman, Head of Investor Relations & Corporate
Communications, Wood Group
Tel: +44 (0) 1224 851404, email: nick.gilman@woodgroup.com
