SGS achieves strong growth, revenue worth US$3.30bn

SGS ORAOil, gas and chemicals delivered solid organic revenue growth of 7.7 per cent. (Image source: Bob White/Flickr)The SGS Group has announced to perform strongly in the first semester reporting total revenue of US$3.30bn

The Group also saw high single-digit growth from oil, gas and chemicals (7.7 per cent) with solid results in plant and terminal operations in the USA fuelled by the start of new contracts and volume increases from existing engagements.

Certification and business enhancement (7.4 per cent) experienced strong growth in management system certification. Consumer and retail (6.1 per cent) were driven by Asia Pacific, Europe and Africa regions and environment, health and safety (6.1 per cent) delivered growth across the business.

Minerals delivered strong organic revenue growth of 13.8 per cent to US$369.53mn for the period, driven by all geographies and services as the underlying market recovery continued to build momentum in the first semester. In addition, the strategic realignment carried out during the downturn has positioned the business to capture increased opportunities in the upswing period. The traditional trade inspection portfolio remained robust, with increased demand for Energy Minerals and bulk commodities related services in Europe, the Americas, Africa and Asia-Pacific.

Geochemistry laboratory outsourcing demand continued with six new projects awarded in Australia, Brazil, Canada, and South Africa in the first semester, further strengthening the Group’s global leadership position in this segment. The geochemistry on-site laboratory demand continues to provide ongoing opportunities for other services in the minerals portfolio.

Sample volumes into commercial laboratories continued to rise, delivering strong growth particularly in Australia, Canada and Africa due to increased exploration programmes.

A more positive oil price dynamic supported growth in downstream trade activity, outsourcing solutions and the upstream production segment. However, the upstream exploration segment remained depressed.

Plant and Terminal Operations achieved solid double-digit growth particularly in the USA driven by a combination of the start of new contracts and volume increases from existing engagements. Trade-related services reported modest growth with improvement in Europe, Africa and the Middle East, along with strong growth in Asia.

Upstream services continued to deliver moderate growth from new contracts in the Middle East and North Africa confirming the business’ strategy of strengthening existing services in the production activities.

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