As we begin to close out 2024, it’s a time for reflection on a year marked by significant growth and resilience in the changing oil and gas sector. From navigating complex supply chains to expanding into international markets, Wellhead Electrical Supplies has achieved notable milestones, each shaped by our adaptability and team’s dedication.
Major Milestones in 2024
Strong Revenue Growth
2024 has been pivotal, with a 33 % revenue increase in the first half alone, positioning Wellhead to nearly double its year-on-year profitability. This growth reflects the industry’s broader demand for specialised, high-quality electric equipment tailored to changing operational requirements and legislation worldwide.
Focus on Specialist Products
Our emphasis on specialised solutions—particularly those from industry-leading partners like Tideland Signal, Orga, and Gai-Tronics—has been instrumental in driving this revenue growth. By concentrating on highly technical, niche solutions, we’re meeting the specific needs of clients in sectors that demand reliability and precision, showing the importance of high-quality and reliable offerings in today’s market.
“Niche products are at the core of our approach, allowing us to meet the distinct needs of a sector where precision and reliability are non-negotiable.”
Navigating Industry Challenges
Supply Chain Resilience
The global oil and gas sector, like many industries, has faced significant supply chain delays. In 2024, lead times for essential components extended from the typical eight weeks to as long as 30 weeks. When a client experienced a 30-week delay from another supplier, Wellheads stepped in with ongoing updates and extended support, including weekend availability when necessary. This responsiveness stresses our commitment to prioritising client needs and minimising disruption wherever possible.
Broadening Beyond Local Markets
With increased competition and limited growth within the North Sea, Wellheads has expanded into emerging markets, including Asia, the Gulf of Mexico, and Brazil. Currently, 30% of our revenue stems from exports, and our goal for 2025 is to push that figure beyond 50%. Global demand presents an opportunity to diversify and sustain growth, even as regional dynamics shift.
Opportunities in Decommissioning
The decommissioning field is a growing area of interest, with significant opportunities on the horizon as assets are retired or reconfigured. We remain alert to developments in this area, which may present Wellheads with future growth avenues.
“As industry needs evolve, staying flexible and forward-looking enables us to remain a relevant player in this sector.”
A Solutions First Approach
Transitioning to LED Solutions
In light of recent regulatory changes requiring a shift from fluorescent to LED lighting, Wellheads has taken proactive steps to prepare clients. We’re not only providing the technology but also offering guidance and education on the transition, reflecting a commitment to sustainability that extends beyond immediate product needs.
Exploring Renewable Energy Prospects
While oil and gas remain at our core, we’re actively exploring potential opportunities in renewable energy. Given the sector’s competitive nature, our expertise in electrical solutions positions us to bring valuable insights and innovative approaches to the renewables landscape.
Priorities for 2025: Building on Success
Strengthening International Markets
Our primary focus for 2025 will be increasing our revenue share from international markets. By aiming for over 50% in exports, we’re aligning with an increasingly globalised industry where cross-border collaborations and exports play a vital role in long-term growth.
Deepening Local Relationships
Locally, we’re committed to maintaining strong client relationships in Aberdeen, offering consistent support and exploring new ways to deliver added value. These efforts reflect our commitment to remaining a trusted partner within our home market.
Investing in Our Team and Customer Service
With new team members on board, we’re dedicating resources to training and development, ensuring our team can respond effectively to clients’ evolving needs. Customer service will remain central to our approach, with a continued emphasis on proactive communication and transparency to address client needs.
“In an industry shaped by constant change, it’s our people and their commitment to exceptional service that form the cornerstone of Wellhead’s success.”
Looking forward to 2025, we remain optimistic and prepared to continue navigating the complexities of the oil and gas sector, providing clients with reliable, high-quality solutions that meet the demands of a changing market.
