Derrick Services (DSL) Heading For $50m Target

Derrick Services (DSL) Heading for $50m Target

DSL, a privately owned Drilling Structures & construction specialist in the Oil & Gas Industry, are experiencing continued high Worldwide demand for their services and products in the five months of 2014, with a current increase in Turnover in excess of 40% of the same period year ago. Both its UK & Singapore operations are enjoying very strong growth. The Singapore operation growth is due to investment new fabrication facilities and infrastructure in 2013 which has helped increase revenue streams more than tenfold over the same period for 2013 for that particular operation.

The strong performance for 2014 is helping to create new jobs in both the UK and its overseas operations, with the UK alone intending to create between 10-12 more management and administration positions in 2014 and a further 20-25 offshore/site positions.

Mike Smith, Managing Director of DSL explained that this exceptional growth is a result of “a combination of both new customers and increased business from established customers. In the last few years we have built upon our reputation of consistency and reliability in the Industry and as customers look to us to take the risk out of their short term upgrade or refurbishment of rigs, DSL is now recognised as being a reliable contractor to get their work done on time and within budget and without compromising safety and quality. It is particularly rewarding to achieve such a reputation in the market place as it provides us with a very exciting momentum for the business moving forward, and gives us the confidence to continue to invest to achieve even further growth”.

The company had originally forecast 2014 Group Turnover of £25m but based on current performance is now likely to be closer to £30m. Mike Smith added, “in 2012 we experienced a very steep increase in work during the second half of the year which resulted in our full year Turnover increasing by around 50%. This year it is the first 5 months that have driven the figures up, so we will have to wait to see where the 2nd half of the year takes us but based on the current order book and recent contract awards all the signs are that the growth can be sustained over the course of the rest of the year, and beyond. As a group we have issued over 500 proposals this year and we now have to establish a dedicated proposals department in the UK to cope with demand”. The challenge for us now is to adjust the infrastructure of the business especially in the UK and Singapore to adapt to the continued growth.

Recent contract awards include the upgrade of the Derrick on a Drill Ship in Vietnam, 2 Drill Ship Upgrades for ONGC of India plus a contract for the upgrade of 4 jack up rig derricks currently been drawn up, and a 15 rig inspection and recertification contract for ENTP in Algeria.