We are committed to providing the highest quality service in all our chosen markets. It's that simple.
ITS Group, a leading provider of equipment and services to the global oil and gas industry, continues its commitment to international expansion as part of an ongoing growth strategy.
The company has announced it has completed, for an undisclosed sum, the acquisition of specific business and assets from a Colombian oilfield service company. The business acquired provides tubular and downhole tool rental services, tubular and casing running services and inspection services. The equipment, together with two facilities and 29 employees will help accelerate the Group’s investment plans for Colombia as well as the wider region.
Jeff Corray, chief executive officer said: “The Colombian acquisition is a good example of our commitment to growth and fits nicely with our investment strategy for Central and South America – ensuring we have equipment and service capability where our customers want it and crucially, delivered with local expertise.”
The company has also expressed confidence about future growth prospects following the release of its financial results for the year ended 31stDecember 2009.
The global recession saw Group turnover decrease 11% from $143.6 million to $127.8 million as weaker market conditions impacted on the demand for its equipment and service offering. Similarly, Group Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) before non-recurring items declined 10% to $42.7million from $47.2million
After posting lower trading against the previous 12 months, several strategic developments have put the company in a strong position to capitalise on the market upturn when it materialises.
The Group invested $53.1 million on new equipment and infrastructure as management focused on ensuring the business was well placed for the future.
In 2009 two bases were added in Mexico – taking its in-country infrastructure to three locations – while new facilities were opened in Peru and Kurdistan. Investment has continued in 2010 with manufacturing capabilities increased in India - through the opening of a purpose-built facility - and in the US. Throughout its global infrastructure, employee numbers have risen to over 1,250.
To support continued investment the Group completed two significant balance sheet developments in 2009: increased borrowing facilities were secured through a joint arrangement with the Bank of Scotland and the Clydesdale Bank, which was soon followed by a $45million growth capital investment from private equity firm Lime Rock Partners in exchange for a minority stake in the business.
These developments have given the company capital to support and continue its strategy to grow through new geographies, products and services.
Jeff Corray said: “Without doubt 2009 was a challenging year for the oil and gas industry . While the tough economic conditions impacted our trading performance, we have worked tremendously hard and continue to make strategic decisions entirely focused on positioning the company for the recovery.
“Whether this is through the recruitment of key personnel to bring more focus and value to relationships with our customers or the continued growth of our global infrastructure, we are developing a platform that will allow us to become a truly global oilfield service company.”