ROVOP, the provider of remotely-operated vehicle services to the oil and gas and renewables sectors, has seen revenues increase nearly 40 per cent amid a “deep downturn” in the subsea market

The company, which has bases in Aberdeen and Houston, reported sales of £19.7 million in the year ended September 30, up from £14.2m, new accounts reveal.

The sales growth came against a backdrop of continuing pricing pressure and challenging conditions sparked by the oil and gas industry downturn.

Losses narrowed to £2.6m from £6m, the accounts show, while long-term debt was reduced to £16m from £35m. ROVOP said the reduction in debt provided flexibility ahead of a £56m funding injection from Business Growth Fund and private equity group Blue Water Energy in December. At the time, the company said the funding would allow it to increase its fleet by 50% and create up to 80 jobs.

ROVOP increased its headcount to 180 from around 160 in the period covered by the accounts, and increased its fleet of remotely operated vehicles (ROVs) to 27 from 16.

Chief executive Steven Gray, said: “These results reflect a period when the market for subsea services, and ROVs in particular, remains in a deep downturn. Customers remain very cost focused, and projects have remained short and subject to delays at late notice.

“Against this difficult backdrop, which has had a severe impact on our sector, we believe ROVOP has had a record year in terms of revenue and EBITDA because customers have recognised our ability to reduce risk and cost in their projects.

“However, we also feel pressure on margins and continue to work hard to reduce costs for customers in as sustainable way as possible.”