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Aquaterra Energy: A wave of success

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Exec talks to George Morrison, MD of Aquaterra, about graduate recruitment, doubling turnover and controlled growth.

Written by Ian Armitage and Produced by Aaron Wells

When Exec learnt that there was a fast growing offshore engineering company which has doubled turnover year on year for the past three years, based in Norfolk's fast-growing O&G industry, we had to take a look.

What we found was an exciting, dynamic company located in a purpose-built two-storey office on the doorstep of Norwich International Airport, into which it moved in 2007 to assist in its planned expansion over the next few years.

Growth has been rapid. From just four people, it now employs a team of nearly 60 full time staff and has achieved sales in excess of US$30million since its formation, providing services to 25 operators in over 15 countries worldwide.

It has grown so fast that it has already pressed on with plans to move into a second site next door – a building that will soon be full of excited and ambitious engineers who will drive the company's next round of growth.

This operation is Aquaterra Energy and it counts the likes of Chevron, Texaco, BP, Total and British Gas among its clients, who regularly turn to the company when they require a solution to a specific problem. Remarkable, considering the firm only opened its doors in 2005.

"Growth has been extraordinary," says Managing Director George Morrison, a Scot who has built a new life in Norwich. "It has certainly been faster than any of us had anticipated.

And what are the processes that have fuelled this explosion?

"Our core business activities include platform and pipeline engineering, drilling templates, tieback engineering, conductor centralisers and riser analysis," explains Morrison. "I think you'll agree it is pretty extensive and as a result we have quickly gained a reputation for providing clients with reliable and economical engineering solutions."

BEST OF THE BEST

Aquaterra's vision is to be seen as "the best and most dependable supplier of products and services to the oil and gas industry". It's an ambitious aim, but one the firm is well on the way to achieving.

"We get some great customer feedback, so by that measure we are doing well," says Morrison. "How will we ever determine if we are the best? Well, that's more difficult. We have got some great people here who understand what we are trying to do and focus on that goal."

Aquaterra Energy is undoubtedly a young and dynamic company. It is committed to providing top quality services to the international offshore O&G industry. But moreover, it has set an example as being a responsible employer; doing its bit for the local economy and winning the prestigious Eastern Daily Press 'Best New Business of 2007' award.

HOW TO MANAGE GROWTH

Success has a price. That price, it seems, is managing growth, particularly in terms of finding the right personnel. Fortunately, Aquaterra saw this early and has itself taken action in regard to the challenge.

"We've recognised the lack of younger engineers and technicians currently working within the offshore industry and the skills shortage that exists within it," says Morrison. "We've therefore decided to develop and encourage young engineering talent through an undergraduate summer placement scheme and a graduate training programme."

In the summer of 2007, the company took on two mechanical engineering students from Nottingham University to work alongside its own team for 12 weeks. The aim was for students to gain an insight into all aspects of the offshore engineering world and to encourage them into the industry – and the initiative worked.

"Why do we do things like that? Well, personnel is a big issue for us, there is no question about it," explains Morrison. "We are a knowledge business and our knowledge is engineering. We have some very good analysts, design engineers and project engineers. To grow that resource base is the hardest thing for us.

"We aren't opportunity constrained. We are growing rapidly, we are working more around the world, and we are getting more customers. There are plenty of opportunities.

It is a case of managing the amount of client contact we have and the projects we are taking up to the resources we have here. We are constantly trying to expand that resource base."

The company is recruiting for more engineering graduates this year.

BUSINESS IS BOOMING

Despite this slight concern, which is likely a problem every business would wish to have, business is booming.

"The business is very good," continues Morrison. "There is no question of that. This year will be our third year of doubling turnover year on year. And the future ahead is very bullish.

"That being said, I don't think you can double turnover every year because you have to match your resources to your opportunities, otherwise you can't maintain the strong relationships which are as important to us as a business.

"Obviously our opportunities are plentiful, so finding people is the main challenge, as is investing in equipment and assets – the things that are essential in any business."

But how will this affect the rate of growth?

"We will probably slow our rate of growth in that respect, but, as I say, right now I don't think we are even touching the sides of potential markets for our services. We aren't identifying a lack of services and new things we could offer to the market, so we are very bullish about the future."

Indeed, the order book looks promising and Aquaterra is doing a lot of work this year that will lead onto more trade the next. The short to medium term outlook for the ambitious firm is positive.

"What we need to continue to grow in a responsible manner and see where the opportunities lay," says Morrison.

Aquaterra's strategy right now, then, can be summed up in two simple words: controlled growth. "That is really what we are aiming at in the short to medium term," he adds. "Are we going to pause? I think we'll see how the market goes; while the market is good we will carry on exploiting the opportunities as they come.

"We have got further than I thought we would have done in the three years. We have certainly exceeded expectations. This year we hadn't anticipated quite the growth in turnover we have had, which has made it challenging. We have been running hot in all departments to keep up."

It has certainly been a great three years for Morrison and everyone involved in Aquaterra and Exec looks forward to popping in again soon to see how this dynamic offshore company continues to grow.