Stork offers services and products associated with maintenance, modifications, and assurance of asset integrity of production facilities, focused on delivering technical support that spans the asset lifecycles of its customers’ operations.
The asset integrity services that Stork provides enables its customers to maintain the performance of their assets, while meeting high health, safety, environmental and quality requirements. Stork’s services primarily consist of maintenance, modifications and overhaul activities centered on delivering technical support that extends the asset life cycles of customers’ operations. The focus is on creating added value by optimizing the total cost of ownership. Stork offers customers a wide range of services and solutions, including:
- Long-term maintenance services
- Consultancy
- Project management
- Stop and turnaround management
- Inspection and repair services
- Equipment overhaul asset management
- Relocation and decommissioning services
- Rental of energy, lighting, air, heat, mobile offices, lifting and welding equipment
With roots dating back to 1868, Stork has grown from being a small local player to a global provider of services. In an important step in its growth in recent years, Stork acquired RBG, a UK-based provider of services to offshore oil and gas customers, in May 2011. Today, Stork employs over 16,500 employees across its targeted geographies.
Stork Corporate Movie from Stork on Vimeo.
Strategy
Stork aims to be a leading provider of maintenance, modifications and assurance of asset integrity in onshore and offshore Oil & Gas production, Chemical and Power Sectors. Stork’s strategy involves targeting major global and national oil companies and independents, building a relationship with them and following them internationally.
By replicating service capabilities from mature regions to growth regions and driving innovation and knowledge transfer, Stork will be able to leverage its experience and history.
Geographically, Stork intends to expand in growth markets such as Colombia, Peru and Australia. Meanwhile, consolidation and operational excellence will be the focus in more mature markets such as the Benelux region.
Market focus
Stork targets customers in the oil & gas, chemical & refining and power industries. These markets are expected to grow in the coming years driven by increased focus on asset integrity, a trend driven by increasing regulatory requirements, an ageing asset base, increased complexity in production facilities and more stringent health, safety and environmental requirements.
Stork is shifting its focus more and more towards the oil & gas sector and towards growth regions in order to sustain the growth of its business. As before, Stork is primarily active in the more resilient maintenance, modification and integrity assurance activities of its target customers. This has proven beneficial during the recent months where a drop in oil prices has affected new investments in the sector. By holding a solid market position whilst being well diversified geographically and across market segments, Stork’s business has remained stabled.
Operations in 2014
Stork’s operations showed solid recovery and performance improvements in 2014. Revenues grew by organically by over 6% to €1.492 million with strong revenue growth in the oil & gas sector in Continental Europe, Colombia and Australia. EBITDA increased by over 17% to €81 million and margin improved to 5,4%. Order book grew to 1.337 million. Cash from operations was a solid €63 million. As the result of the execution of an indirect cost restructuring program in Continental Europe and at Head Office, non-recurring costs decreased substantially to €9 million from €36 million in 2013
During 2014 global markets experienced a drop in oil prices. Whilst this has a negative impact on investment decisions in the oil & gas sector. However, Stork’s services and products are primarily associated with maintenance, modifications and assurance of asset integrity of production facilities. These services are less vulnerable to the oil price volatility since Stork’s expertise is needed during the full lifecycle of its customer’s assets.
Outlook
With the majority of Stork’s activities in maintenance, modifications and assurance of asset integrity services, Storks’s business is relatively resilient to volatility in oil prices. The order book is solid and geographically well diversified. Furthermore, Stork will continue to deliver operational and cost efficiencies to its customers. This path of controlled growth offering value adding services to Stork’s customers will be reflected in a stable and sustainable development of revenues and result in 2015.
