VEN2489

Oilfield Derrick IRM (Inspection, Repair, and Maintenance) in the Permian Basin

Southwest US
 

The company offers oilfield derrick inspections, repairs, maintenance, modifications, and fabrications. The company is certified to API Specification Q1 RP 4G in the operation, inspection, maintenance, and repair of drilling and well servicing structures, in particular the derrick and the substructure.

Key Aspects:

  • Services well-known oil and gas companies in the Permian Basin
  • Welding and inspections are core service offerings
  • The proper alignment, necessary repairs and welding by the company's certified personnel per AWS D1.1 allows client equipment to be stamped "Certified to meet API RP 4G Specification Q1."
  • Approximately 50% of revenues are generated from on-site projects, and the other 50% from off-site work
  • Approximately 80% of sales come from repeat clients
  • Average Gross Profit Margin greater than 75%
  • Long-term customer relationships with major companies
  • Balance sheet is currently debt-free

    Opportunities:

    • Hire internal drafters and engineers to help promote the company's expansion into the oil and gas production sector
    • Expand the company's sales department
    • Design and offer new and improved equipment for drilling rigs
    • Continue entrance and expansion into the fracking industry
    • Continue developing personal relationships with clients
    • Initiate facility improvements such as installing overhead cranes
    • Hire two more journeyman welders to train for field work
       
       
       
      Year:

      2016

      Internal

      '000

      2017

      Internal

      '000

      2018

      Internal

      '000

      Turnover7041,3771,035
      Gross Profit:5211,067558
      Adj. EBITDA *253446113
      * Earnings before interest, tax and depreciation (non-cash item)
       
      Bids Invited