Waste management firm Augean today said a strong performance from its North Sea operations would help profits come in ahead of expectations this year.
The company, which operates sites in Aberdeen, Paisley and Dundee, said that trading in the second quarter of the year had improved across the group and it highlighted factors including activity at its Augean North Sea Services division.
The business works with oil and gas firms on waste issues around drilling and well abandonment operations, emergency response for spill incidents and decommissioning services.
Other factors contributing to improved profits included higher landfill volumes across most waste types and increased radioactive waste profit.
Further improved trading results has also led to increased net cash in bank which is currently around £20 million.
In its latest annual results, Augean said its North Sea saw revenues increase by 19% to £21.7m last year on the back of a string of new customer wins with adjusted operating profit rising to £2.1m from £700,000 due to factors including of increased decommissioning activity in the North Sea.
It said the division was seeing the benefits of moving up the supply chain, dealing directly with oil and gas operators and top-tier customers which was providing opportunities to widen its service scope more directly with those customers. A new facility at the Port of Dundee for the management of waste arising onshore from the decommissioning of offshore assets is now fully operational.
At the end of 2018 the group was awarded a decommissioning contract with Shell for the Curlew vessel.
The group expects to announce its interim results for the six months ended 30 June 2019 on Wednesday 17 July.
