Aberdeen Energy Services Group Secures Additional $60m Firepower

ABERDEEN-based oil services group Centurion has lined up an additional $60m (£46m) firepower as it eyes acquisitions amid the recovery in markets such as the North Sea.

Centurion, which provides services ranging from container rental to support with pipeline development, has secured a $60m increase in the size of a credit facility provided by a group of banks, to $250m.

The move signals confidence in the outlook for the oil services sector, which went through tough times following the slump in the crude price from 2014 to 2016.

Activity levels have started to increase in areas such as the North Sea following the partial recovery in oil prices since late 2016.

Centurion’s chief financial officer Euan Leask said the extension of the credit facility would ensure the group had “sufficient firepower to expand through highly selective, complementary acquisitions and capital investments”.

He said the firm, which has operations around the world, is generating strong cash flow.

The increase in the facility provides further evidence that financiers see potential in the oil services sector. Some oil and gas firms found credit hard to come by amid the downturn.

Centurion noted that Royal Bank of Scotland has joined the group of lenders that provides the credit facility. This also includes Clydesdale Bank and international giants such as HSBC and Wells Fargo.

The Centurion group was created last year by US private equity business SCF, which merged a number of firms active in the oil services, mining and infrastructure sectors to form a global business run from Aberdeen. It includes operations in the USA and Canada.

Last week Aberdeen engineering giant Wood said it expected to achieve moderate growth in the North Sea this year after business in the area fell amid the downturn.

Source: www.heraldscotland.com