STATS anticipates steady year despite market conditions

UK-based pipeline technology specialist STATS has booked EBITDA earnings of £5.6 million, according to its annual accounts as at 31 December 2019.

The company generated revenues of £39.1 million, down from £43.4 million in the prior-year comparable period.

However, STATS noted its 2018 result included its largest ever contract, completed for Abu Dhabi client.

STATS said it was confident its 2020 performance and activity levels would be broadly consistent with those of 2019.

The company’s success in recent years of internationalising its business continued, with 85 per cent of revenues derived outside UK.

Milestone achievements in 2019 included increased market presence in the US where revenues grew by 176 per cent.

It also includes completion of isolation campaign in Malaysia, and progress on contracts in the Norwegian North Sea and Nigeria.

Furthermore, STATS has made headway in Canada and Middle East.

In addition, it inked a deal with Sakhalin Energy and INTRA for covering isolation works in Russia.

STATS Group chief executive officer, Leigh Howarth, said:

“As Covid-19 evolved into a global pandemic during the early part of 2020, this had an impact on our trading performance.

“Not surprisingly, several significant contracts which had been a long time in planning were postponed by our clients until later this year or 2021, but on the positive side there is healthy programme of work ahead of us.

The group’s pre-tax profits for 2019 were £0.2 million, against £2.5 million in 2018.

EBITDA earnings decreased from £7.6 million in 2018 to £5.6 million.

Investment continues into R&D activities relating to STATS’s proprietary technology products and to secure patents and trademarks where appropriate.