Peterson Energy Logistics (PEL) is not directly affected by the “windfall tax” on North Sea oil and gas producers but the controversial levy has without doubt created “unease” across the supply chain, its boss told the The Press and Journal.
Sarah Moore, who joined the business in 2009 and took over as chief executive at the start of last year, was speaking as PEL unveiled results for 2022.
“The energy profits levy (EPL – better known as the windfall tax) has introduced uncertainty of forward planning for many firms.
Family owners’ long-term approach
She added: “It is concerning, making it hard to have mid to longer-term foresight for plannning. We are a family-owned business and tend to take a long-term view of investment. I don’t see that changing because of what the EPL may or may not do, but it is causing unease in the industry”.
The EPL has increased the overall tax rate on oil and gas producers to 75%, causing some of them to shelve investments and axe jobs.
PEL is part of the family-owned Royal Peterson Control Union group of companies, with operations spanning more than 80 countries. The group is active in all aspects of the supply chain across many industries, including agriculture, energy, forestry, sustainability and textiles.
PEL’s UK operations are run from Aberdeen, which is home base for about 420 employees. Operations in Shetland and Edzell take the Scottish total to around 550.
Numbers were recently boosted by major new logistics contracts with North Sea producers Apache and Harbour Energy. These have created around 50 new jobs at PEL.
North-east job opportunities
The company, which employs about 860 people globally, added: “These contract awards will help secure local jobs in Aberdeen and the north-east.
Reporting on its first full year since Ms Moore took over the hotseat, PEL said sales during 2022 were flat at about £236 million. But earnings before interest, taxes, depreciation and amortisation surged more than 22% to £6.15m, from £5.04m the year before.
PEL said it was a “robust” performance, adding the company was “positioned to deliver further improved financial performance in 2023” as demand for its cross-sector energy logistics services continues to increase.
Operations in the UK and Netherlands did particul;arly well last year, contributing to “significant growth in year-on-year bottom line performance”, the company said, adding: “The strong financial performance was bolstered by energy sector-wide contracts executed in the renewables and decommissioning sectors.”
Ms Moore continued: “Working collaboratively with clients has been vital to our collective success as we deliver more connected operations, while achieving significant efficiencies and cost savings for our clients, and reducing emissions to support our combined business objectives.
‘Significant investments’
“As ever, our inherent safety culture, ambitious environmental targets and commitment to local communities continue to be our focus areas.
“We are making significant investments to support our growth strategy, expand our renewables offering and evolve our Lighthouse technology to strengthen Peterson’s position as the key logistics partner for the energy transition.”
Lighthouse is a suite of software applications that digitalise a logistics supply chain.
PEL’s highlights of 2022 included it winning a “significant” contract supporting Vestas in building the Viking onshore wind farm in Shetland. The project, which was completed in Q2 2023, saw PEL’s Shetland team provide offloading, storage and transportation services for 103 onshore wind turbines. A total of 21 vessel deliveries were made and more than 1,000 components discharged from the company’s base in Lerwick.
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