FULL YEAR RESULTS FOR THE 12 MONTHS TO 31 DECEMBER 2018
SIGNIFICANT PROGRESS IN 2018 AND STRONG PLATFORM FOR THE FUTURE
Aberdeen, UK, May 2019 – Centurion Group (“Centurion” or “the Group”), a global leader in the supply of critical rental, infrastructure and support services to the energy industries, today announces full year results for the year ended 31 December 2018.
The Group operates through three business segments: Accommodation & Modular Solutions (AMS); Drilling, Completions & Production (DCP); and Infrastructure (INF); across four key geographical markets: US Land (USL); Canada Rentals & Services (CRS); Canada Infrastructure (CIN); and Rest of the World (ROW).
In 2018, Centurion Group’s financial performance improved substantially as the Group benefitted from its increased scale and reach, strong performance in the US, alongside an improving operational backdrop in Canada and stability in the Group’s other international markets.
- Revenue increased to $442m (2017: $323m)
- EBITDA more than doubled to $71m (2017: $34m)
- Reduced net debt to $161m (2017: $175m)
- Reduced leverage ratio to below 2.3x net debt/ EBITDA
- Invested c.$50m in the business to drive future growth
- In May 2019, the Revolving Credit Facility increased by ~$60m, extending total committed facilities available to Centurion to ~$250m
Strong performance across the Group’s three segments:
Accommodation & Modular Solutions (AMS); 47% of 2018 EBITDA
Operates three main sub-segment product and service lines: Accommodations & Ancillaries, Tanks & Containers and Waste & Water Treatment.
- Rapid acceleration of growth driven by US onshore activity
- Improving market conditions in Australia on the back of mining activity
- Stable activity in UKCS offshore sector
Drilling, Completions & Production (DCP); 41% of 2018 EBITDA
Operates three main sub-segment product and service lines: Drilling & Completions, Production & Testing and Subsea.
- Strong performance from onshore well site completion and production support in US
- Robust offshore performance with Asia Pacific complementing stable activity in UKCS
- Acquired Twilight Services, expanding US onshore capability in light tower and power unit rental
- In Feb 2019 acquired Tango Delta Rentals, a provider of remote communications and other support rentals and services in Canada
- Growing an integrated wellsite offering with a fleet of wellhead isolation tools within US Land operations and through the acquisition of Totalfrac in May 2019
Infrastructure (INF); 12% of 2018 EBITDA
Operates three main sub-segment product and service lines: Access & Environmental, Piling & Foundations and Project Management.
- Solid growth driven by higher mid-stream projects activity in Western Canada
- Bolt-on acquisition of Copps Services, focused on driven piling and screw piling foundation solutions within Western Canada
Outlook and prospects
Centurion is well placed through its segmental and geographic diversity to make further progress in the current global energy market conditions. The extended debt facilities give additional financial capacity to focus on our three key growth drivers:
- Execution excellence
Delivering first class service for clients globally based on our “Proven People, Innovative Solutions, Any Time, Anywhere” ethos, and further enhancing the Group’s reputation by maintaining the highest level of safety, quality and ethical standards.
- Delivering higher value, integrated solutions to customers
Maximising the Group’s value to customers by ensuring they have access to the full breadth of the Group’s products and services, across all markets, further differentiating Centurion within the market place.
- Pursuing carefully selected, value enhancing M&A and strategic capital investment
Continue to use the strength of the Group’s balance sheet to selectively acquire high quality businesses, broadening our product and service offerings, our geographic footprint and bringing new technologies into the Group. Following the successful acquisitions of Tango Delta Rentals and Totalfrac already in 2019, the Group’s acquisition pipeline remains strong.
Fernando Assing, Chief Executive Officer, said:
“2018 was an excellent year for Centurion. We delivered strong revenue growth of over 40% with Group EBITDA more than doubling to $71m. At the same time the Group has been successful in strengthening its balance sheet while continuing to commit significant investment to support our future growth.
Our strong performance in 2018 has been led by organic growth across our three business segments, supplemented by value enhancing bolt-on acquisitions that have added new capabilities and new customers into the Group. The breadth of our equipment and service offering, combined with the expertise and focus on safety and service quality, are major competitive strengths for Centurion.
We remain focused on cross selling our global service offerings between segments, and continuing to deliver first class service at a local level, whilst at the same time integrating recent acquisitions. The Group’s wide range of capabilities, global footprint and exposure to different markets within the energy and resource industries provide a strong platform to build upon. We have started 2019 positively and expect to continue progress in the year ahead.”
Martin Robinson / Elizabeth Snow / Guy Bates +44 (0) 207 353 4200
About Centurion Group
Centurion is a global leader in the supply of critical rental, infrastructure and support services to the energy industries. It combines the scale and the breadth of offerings via its global segments: Accommodation & Modular Solutions (AMS); Drilling, Completions and Production (DCP) and Infrastructure (INF), with strong local presence in key energy markets like US, Canada, UK & Europe, Caspian, South East Asia and Australia, to deliver value to customers around the world.
For more information, please visit www.centuriongroup.co.uk
Back to News