Speedy has completed its contract with Abu Dhabi National Oil Company (ADNOC) after 11 years.
Speedy began working for ADNOC Logistics & Services in 2012, supplying materials handling equipment and manpower services to the oil and gas market in Abu Dhabi, initially on a five-year contract. After several renewals, the contracts finally expired on 28th February 2021.
Speedy has sold its assets relating to the contract for US$18m (c.£13m). The transaction adds more than 2,000 pieces of equipment to ADNOC L&S’ asset base, including cranes, forklifts, firetrucks.
In the year ended 31st March 2020, the Middle East operations generated operating profit of £5.4m for Speedy.
An agreed four-month transitional period is expected to see Speedy’s 600 or so employees in the UAE offered re-employment by ADNOC.
Speedy’s international business continues to operate the Speedy Zholdas joint venture in Kazakhstan JV, serving the oil and gas industry there.
In a trading update today the Speedy board also said that trading since 30th September 2020 had been ahead of their expectations. Revenue has improved as activity levels have continued to increase, they said. Core hire revenue in the UK and Ireland was 2% higher in February 2021 than in February 2020.
Profit before tax for the year to March 2021 is therefore expected to be well ahead of current market expectations, the board said.
Chief executive Russell Down said: “I am pleased to report another period of momentum and resilience for the group as our colleagues have adapted and supported our customers in these challenging times. Our ongoing positive trading has benefitted from increasing activity levels and shows the strength of our strategy, people and operational delivery.
“The successful exit from the Middle East operations is an important strategic step for Speedy and we wish the whole of the ADNOC team every success in the future. Looking ahead, we are well positioned to take advantage of the market opportunities in the UK and Ireland as activity levels continue to improve.”