Company Report: McNulty Offshore Construction Ltd
Top operators in oil & gas fabrication & construction McNulty Offshore Construction is a leading name in oil and gas fabrication and construction in the UK, but has grander plans on the table

McNulty Offshore Construction is a leading name in oil and g

McNulty Offshore Construction Ltd was founded in 1906

When you think of McNulty Offshore Construction Ltd, you think of the foremost oil and gas fabricator and construction company in the UK. Indeed, as it says on the company’s website, it has matured from its 1906 beginnings as a small stevedore supply company to the port of Tyne, to what we see today as Europe’s number one FPSO/FPU topsides contractor and a market leader in the renewable energy sector.

The company prides itself on its flexible and innovative approach to projects, allowing it to offer a wide range of construction solutions and services to clients. But how was 2009 for the firm? Managing Director Jim Masterton explains that results were fairly good. “There was a reasonable market last year. We’re just about to release our 2009 results and they look pretty healthy.” Impressive indeed in the downturn, where many in the oil and gas sector have fallen prey to a reduction in projects and consequently a suffering order book. What is the secret to the continued success of the firm? “I think it’s just good management and a committed workforce, the management runs the business here well,” adds Masterton. Although new to the organisation as the MD, Masterton sees a healthy leadership system in place. “The management and workforce here have the desire to make the company do well,” he says.

The management and workforce are working hard on the various projects through a difficult winter period. The projects include a renewable energy sub station under construction and a refurbishment programme for a current client whose production semi-sub is alongside the quay, with already contracts in place to revamp the utility systems and hopefully the refurbishment of the process systems which should be finished in the middle of next year.

A TECHNICAL JOB
Moving onto personnel issues, the problem, as with a lot of operations in and around the sector, is that the firm has an ageing workforce because most people in the company have worked in the industry for a long time. Around 20 years ago no one joined the offshore industry leaving an age gap. “Everyone in the oil and gas sector will tell you that in engineering and construction they have a problem with skill sets, and are forced to bring back people that retired five years ago at this moment in time,” says Masterton.

“It’s because it’s a challenging industry to work in from both a technical point of view and also from an environmental point of view. If you have to work on an offshore project it’s a very technical job and very challenging,” he continues.

It also can be a very dangerous job. Health and safety wise, the management and workforce work together on health and safety issues all the time. “We have a very good safety regime here in terms of advising people of unusual events happening so they are aware of it,” says Masterton. “We’re just about to start a new safety initiative in the middle of the year which is an awareness programme; it is a fact that we can not train everyone to be super safety efficient but we can always make them aware of the hazards going on around them,” he says.

On the immediate horizon for the firm? Controlled expansion. With its other group company Consafe based in Aberdeen, which designs, builds, and commissions accommodation units for the offshore industry, McNulty can now think about expanding the business in tandem with Consafe, offering a unique solution to many clients requirements. “This combination will not only target the UK and European sector but the aim is also to take our combined experience to the global market which is one of the remits that I have because of my international experience,” says Masterton. “We would like to expand in line with available capital expenditure, understanding that the global finance market has not yet resumed to what we would recognise as normal business. This makes the challenge more daunting as finance lending normally relates to a good order book; once we see that we are expanding the order book then the finance issues becomes better for everybody .”

RENEWABLES FOCUS
As mentioned above, the renewable energy market forms part of the core business now and a future focus will be expanding the market outside the UK sector as a leader in the windmill offshore renewable energy market. “The firm has just completed a jacket that sailed away a few weeks ago and we are building another offshore sub station at present and that will be loaded out in May 2010,” says Masterton. “The company has just secured another order for a jacket and offshore sub station and has commenced the engineering phase and is close to final discussions on another renewable energy project.

“Renewable energy is definitely a major target for McNulty going forward and hopefully combining that with an upturn in the oil and gas sector it will leave us strategically positioned to expand our business in line with our business plan,” he adds. “I think going forward the renewable market will change; what has been designed to date are the typical offshore type structures in the North Sea, but for the weight required for supporting electrical sub stations there must be more economical ways to design the structures to be more competitive.”

It certainly is a portrait of a firm with big plans on the horizon. From the current projects to the increased renewable market plans, there is a lot to be proud of at McNulty, and the firm certainly deserves every success for the future.

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