Big revenues for North Sea oil and gas producers on the back of high oil prices have yet to “trickle down” to much of the supply chain, a leading Aberdeen lawyer has said.
Bob Ruddiman added: “It doesn’t happen immediately. It takes time in a market of tight supply and high commodity prices.”
The Aberdeen-based head of energy at Burness Paull was speaking after the law firm announced its own big increases in profits and revenue.
Staff bonuses worth at least £2,500
Staff across the practice are cashing in on annual bonuses worth 5% of their salary or £2,500, whichever is highest, after a 7% jump in profits to £35.7 million.
Revenue grew by 9% to £78.6m during the year to July 31, with Burness Paull citing strengths in corporate finance, real estate, banking, funds, dispute resolution and employment as the main drivers.
“This was supplemented by strong growth in areas such as technology, restructuring and insolvency, tax and public law,” a spokesman for the firm added.
This is a strong set of results, particularly in the face of economic headwinds arising from global inflation and the conflict in Ukraine during the second half of our reporting period.”
Peter Lawson, chairman, Burness Paull.
Burness Paull employs 600 people, including 86 partners, across offices in Aberdeen, Edinburgh and Glasgow.
About 100 staff are currently working out of the office in Union Plaza, Aberdeen.
Mr Ruddiman said the firm’s overall financial performance and activity levels were reflected in the Granite City operation during 2021-22.
Energy reboot
He added: “Pre-COP26, everybody assumed there was energy in abundance.
“But the horror of Russia’s invasion of Ukraine has made us have a rethink about energy security.”
This reboot is creating new opportunities – meaning extra work for Burness Paull’s Aberdeen team.
Activity levels in the north-east office have been boosted by renewable energy, infrastructure, real estate and urban regeneration projects, as well as work linked to North Sea exploration and production and energy services, Mr Ruddiman said.
He added: “We believe we are well-placed for growth, albeit with headwinds.”
Environmental, social and governance were a “significant element of everything we have done” during the past year,” he said.
Cyber security issues were also prominent, with several energy sector clients affected.
The horror of Russia’s invasion of Ukraine has made us have a rethink about energy security.
Bob Ruddiman, head of energy, Burness Paull.
Activities highlighted by the firm as “noteable” in its review of 2021-22 include its supporting clients in the ScotWind offshore wind leasing round and wider energy transition.
Burness Paull also pointed to repeat instructions from major technology clients such as Amazon Web Services, Comcast, ITN, Sky, Bolt and Cazoo.
The firm’s partner ranks were bolstered by the addition of eight lateral hires, including “two of Scotland’s leading practitioners” – Richard Smith and
Jennifer Wilkie, both recruited from Brodies – as part of a strategic move into family law during the last trading year.
A further five partners have been appointed since the year-end. They are among 58 promotions, including six directors, 11 senior associates, 17 associates and 19 senior solicitors.
⚽️ The Burness Paull Foundation is very proud to sponsor the Scotland men's and women's teams at the @streetsoccerSCO Nations Cup taking place in Dundee next month.
Read more about it here ➡️ https://t.co/RQ5PevSkZA#SSNationsCup #BePartOfIt #TeamScotland pic.twitter.com/HJvQHghlaQ
— Burness Paull LLP (@BurnessPaullLLP) August 18, 2022
Burness Paull chairman Peter Lawson said: “This is a strong set of results, particularly in the face of economic headwinds arising from global inflation and the conflict in Ukraine during the second half of our reporting period.
“Technology, ESG (environmental, social, and corporate governance), financial regulation, immigration and public law are all examples of where the regulatory and risk burden on our clients is increasing, and where we are providing increased levels of advice.”
He added: “Our performance is testament to the level of expertise and dedication right across the firm, and we have continued to strengthen the team with a number of well-deserved promotions and lateral hires in key practice areas where we see scope for further growth.
“Attracting, developing and retaining the right people is key to our ability to service clients. We want to make sure our people are well remunerated for the work they do, which is why the all-staff bonus is important.”
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