Craig International has seen its business impacted by the uncertainty in the North Sea oil and gas market but is investing in overseas markets and AI to balance its portfolio.
Turnover for the global procurement specialists to the energy industry has dropped from £197.3m to £189.9m in the financial year ending April 2025. This is largely attributed to a “challenging” year for its oil and gas customers operating in the North Sea.
The accounts, lodged by Craig Group Limited, the holding company for Craig International and its international subsidiaries, reveal that the contraction of the North Sea market, coupled with increased investment in the Asia Pacific region has led to a fall in operating profits from £1.69m to £0.8m.
To counter the downturn in the North Sea, Craig International accelerated planned investment in internationalisation with new offices and additional staff in its recently opened Australia and Singapore bases.
The group is currently investing in the acquisition of an AI firm which, it says, will provide the platform for developing and implementing cutting edge technology and AI solutions to the supply chain, supporting Craig International’s aim of being at the forefront of digital procurement and providing its global client base with first class, sustainable and efficient out-sourced procurement services.
These investments, combined with cost inflation, negative exchange rate movements and increases in interest rates and tax, contributed to a small consolidated loss for the year.
Chairman of Craig Group, Douglas Craig, said: “It’s been a challenging year for the North Sea oil and gas industry and this has impacted our UK business. While the on-going uncertainty is set to continue if government policies don’t change, we have been successful in securing new contracts through competitive tenders as a result of mergers and acquisitions among our UK customer base which gives us some optimism for the current financial year in the North Sea.
“However, it is overseas markets which will fuel future growth along with our investment in cutting edge technology and AI to further simplify and speed up procurement, driving greater efficiencies and value for our customers.”
Craig International recently expanded into Singapore to increase its reach in the fast-growing South East Asian energy market. This was followed by the opening if its first base in Australia with an investment in Perth to capitalise on the opportunities within the region’s mining, energy and infrastructure sectors.
International business now accounts for 70% of the Aberdeen head-quartered firm’s revenues.
Mr Craig added: “With offices in nine different countries we offer a truly global service and, by accelerating our investment in new markets in the buoyant Asia Pacific region, we will be better placed to balance market dynamics, such as the downturn in the UK North Sea. By focusing on growth markets and strategically valuable segments, streamlining operations and implementing smart, digital solutions, Craig International is well-positioned for future growth.”