Stork Technical Services Announces 2010 Results

Date Published: 13/04/2011

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	Press Release: Stork Technical Services Announces 2010 Results and Successful Implementation of New Operating Model	217.31KB	Download

Stork Technical Services announces its strongly improved results for 2010 and the successful completion of the ‘ONE Stork’ implementation; meeting customers’ demands to provide a convenient single point of contact and an integrated services proposition.

Financial highlights 2010

Net Turnover of €981 million (2009: €885 million) an increase of 11%
Operational EBITDA of €77 million (2009: €60 million), an increase of 28%
Order book up 14% to €602 million (2009: €530 million)
9.443 employees at the end of 2010 (8.435 at the end of 2009) (+ 12%)

(All figures are excluding Materials Testing activities, which were sold as of September 30, 2010)

CEO Doug Meikle:

“Despite the economic challenges lingering from 2009, Stork Technical Services focused on the management and growth of its core activities. 2010 found Stork Technical Services undergoing the first phase of its “ONE Stork” transformation initiative by streamlining more than 50 disparate companies into a matrix organization of seven Business Lines with global leadership and two business lines led on a regional basis. The global Business Lines are Asset Management, Consultancy, Integrity Solutions & Services, Process Equipment, Electric Equipment, Rotating Equipment and Industrial Equipment & Services and the regional Business Lines are Mechanical and E&I Services.

Core activities

Stork Technical Services is a knowledge-intensive provider of integrated technical services and components for process plants and machines in the Chemical, Oil and Gas and Power market segments. Focused on creating added value by optimizing the total cost of ownership, Stork seeks to help its customers achieve the lowest possible costs per unit of product during the life cycle of an installation or machine. The company’s leaders are committed to the ongoing process of meeting technical challenges through the mastery of specialists, a sense of responsibility for performance and productivity, and complete collaboration with the customer.

Strategy

Stork Technical Services has a strategy that is simple, yet unique: to partner with customers in energy and process industries, like Chemical, Oil & Gas and Power (COGP) to think and do in a manner resulting in safe, consistent, productive asset integrity management.

Asset integrity management for our targeted markets goes further than the prevention of direct losses, injuries, environmental damage or loss of production – it also has a direct impact on the reputation and value of our client companies. Our clients are investing in asset integrity management, and Stork Technical Services can help achieve greater business predictability, stability and long-term growth by making a significant contribution to strengthening the integrity of their assets with our turnkey services and collaborative culture.

Segments and Regions

In 2010 Stork Technical Services had a well balanced portfolio across the segments with 35% of sales in Oil & Gas, 18% in Power, 15% in Chemical and 32% in other industries. Approximately 77% of sales is coming from customers in Europe, 15% from the Americas and 8% from the Far and Middle East.

Commercial Highlights

Relocation of complete OCI Nitrogen plant from IJmuiden to Geleen (NL)
Worsley Alumina E&G MFC Boiler upgrade, Non Destructive Testing and Heat Treatment Services (Australia)
4 Years Operation and Maintenance service PETROBRAS of the oil fields Guando, Matachines and Purificacion (Colombia)
Supply of topside corrosion monitoring system for deepwater Gumusut Kakap facilities (Malaysia)
Habshan 5 Process Plant: Heat Treatment, Non Destructive Testing and advance inspection for Kharafi National Co. LLC, contract duration 18 months, (United Arab Emirates)
2 year contract extension on the continued monitoring and maintenance of a ConocoPhillips pipeline integrity management production. (United Kingdom)
Contract with Fairfield Energy to measure pipewall thickness by using a remotely deployed crawler video system (United Kingdom)
Inspection Services for McConnell Dowell at BHP’s Rapid Growth Project 5 & 6 Expansions (Australia)
Long term service contract NAM at Groningen gasfield (NL)
4 Year Maintenance contract OCENSA (Ecopatrol) oil pipeline from Cupiagua to Coveñas and from Vasconia to Coveñas. (Colombia)

Outlook

In 2010, Stork Technical Services has initiated its transformation from a predominantly regional supplier of specialized services into a global partner, serving major companies in the Energy and Process industries. We are focusing on further successful and sustained growth of our core activities. Clear ambitions in this respect have been formulated and there is a robust foundation upon which to build.

In addition, Stork Technical Services will continue to devote energy and attention to the structural improvement of the profitability and capital intensity of our businesses, with the ambition to be in the top 25% of our benchmark performance group. We continue to generate solid cash flows, creating a buffer against the economic challenges left from the 2009 crisis and an engine for future growth that will be pursued with a focus on emerging markets realized through a combination of autonomous growth and acquisitions. We will continue to invest in our customers, people, products, technology projects and our business lines.