MARINE services group James Fisher & Sons, saw profits fall by 59% in the first half of 2020 amid the “unprecedented headwinds” of Covid-19.
The company which serves the North Sea oil sector and shipping in Scotland reported underlying pre-tax profits for the last six months down from £20.9 million to £15.1 million.
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In its interim results for the six months to June 30, total revenue was down 10% from £286.9 million to £258.1 million.
Offshore Oil, which includes Inverurie-based RMSpumptools and Fisher Offshore, improved on 2019’s performance with “momentum” into the start of 2020.
Fisher Offshore, in Oldmeldrum, won “good orders” for decommissioning work, “an area where demand is increasing”, the group said.
James Fisher has a number of other entities in the north-east, including the National Hyperbaric Centre in Aberdeen and JFD Global (UK) based at Westhill.
The Cumbria-headquartered company also has a tankships arm and specialist technical division, which works on defence contracts globally.
Around 70% of the groups 3,000 employees have been working from home since the third week of March, while 400 were placed on furlough.
Restructuring costs of £1.5m were recognised over the period due to a reduction in Marine Support headcount.
Eoghan O’Lionaird, chief executive, praised the “resilience” of James Fisher & Sons’ four divisions.
He said: “The first half of 2020 was one of the most demanding periods the Company has faced, and the commitment, support and engagement of our employees in stepping up to the challenges has been remarkable.
“The Group responded swiftly to both the unprecedented headwinds presented by Covid-19 and the longer-term implications for energy demand by taking actions to reduce costs and protect the Group’s liquidity.
“Whilst the second half is expected to remain challenging and the outlook for our end markets is uncertain, we expect trading to improve through the second half, assuming no material deterioration in the Covid-19 situation.”
