News

2011 is behind us and once again it is time to look back at the year, but also to look forward to 2012 and what it may bring.

This year has been one of substantial change and restructuring at C-MAR, as we have positioned the Group to take advantage of the available opportunities and prepare for significant growth in the years ahead. This process has focussed on producing a fitter and leaner central corporate structure which sets policies, monitors operations and provides guidance and support, while at the same time building a stronger regional structure. Communication is an important key to ensuring the success of this strategy. The framework of this revised corporate arrangement is now essentially in place and the benefits are beginning to come through in terms of both financial performance and an improved sales effort.

Looking around the regions, a particularly pleasing feature of the year has been the strong revenue growth seen in some of the offices, such as Rio de Janeiro and Mumbai, which augurs well for the future in these rapidly developing offshore areas. Houston has also experienced excellent growth, despite the after-effects of the drilling moratorium still being strongly felt in the Gulf of Mexico. Dubai has seen a recovery in business levels after the severe world recession in 2008-9, which strongly affected the Middle East region.

Singapore has had another solid year overall, but of particular note is the gaining of our first crewing contract in China, giving us another foothold in this vast market. Combined with the engineering work we have already been undertaking for Chinese shipyards, this will give us the critical mass to consider a permanent office in the country.

The Dynamic Positioning Centre in London has set another record for the number of students trained and we have seen rapid growth in the numbers in Brazil as well. The D.P. System maintenance courses in Singapore have also been very well received and in high demand.

Teleinformatics continued to produce solid results through the year and is starting to see the effects of its efforts in growing its customer base.

Aberdeen has been particularly affected by the structural changes within the Group and our gratitude is extended to the staff there and in Jersey for their continued support through this period.

Looking ahead, we recognise the need for continuous development and improvement in our business. A challenge which we share with the rest of our industry, is the shortage of high quality trained and experienced personnel. This is partly due to the ageing demographic profile, but also the rapid expansion in the number of vessels and rigs working offshore. This has been particularly marked in terms of the dynamically positioned vessels that are our speciality. Our policies and capabilities in relation to recruitment and training will be a strong focus over the coming months.

C-MAR Group provides a unique service to the offshore oil & gas industry, offering a wide range of competencies which enable us to support our clients, who operate some of the most sophisticated vessels and drilling rigs in the world, from the design and build stages right through to continuing operations. By combining this with our global network of offices, we can support these clients as they move their assets from region to region. The knowledge and ability of our personnel enable us to face the future with confidence, despite the economic turbulence that we currently see in the world.

Thank you for your support in 2011 and my very best wishes for 2012.

Chris Hawdon

Executive Chairman