OIL services entrepreneur Mike Loggie has hailed signs the market is recovering after three grim years although his Saltire Energy business suffered a 25 per cent fall in revenues in the latest period.

The latest accounts filed by Aberdeen-based Saltire show the firm recorded £22.5m turnover in the year to 30 June, compared with £29.9m in the preceding year amid continued fall out from the sharp fall in the oil price since 2014.

The plunge in sales was accompanied by a 16% drop in operating profits at the firm, to £8.2m, from £9.8m in the preceding year.

Saltire’s experience provides further evidence of the challenges services firms have faced since a long period of high oil prices came crashing to an end in 2014 as growth in global supplies ran ahead of demand.

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Firms that operate oil and gas fields slashed investment on new projects and exploration in response to the price fall, leaving services businesses jockeying for position in a shrinking market.

A former Entrepreneur of the Year, Mr Loggie has built Saltire Energy into a leading force in the international drilling tools market and playing a big part in the life of his native Aberdeen.

Writing in the accounts he noted: “The decrease in turnover and operating profits reflected the difficult market conditions experienced in the first half of the year.”

The comments underline the scale of the challenge that the fall in the crude price has posed for the services industry in the North Sea, which is seen as a relatively high cost area.

Saltire earned more than 40% of its revenues in the UK in both of the last two financial years.

However, Mr Loggie added: “Utilisation of assets increased in the second half of the year and the directors believe this upturn in business will continue.”

The accounts were signed off on 29 March. They cover a period during which sentiment appeared to improve among oil and gas firms amid increasingly clear signs that crude market conditions were improving.

After falling from $115 per barrel in June 2014 to less than $30/bbl in the first quarter of 2016, Brent crude rose above $50 in the first half of 2017.

The rise followed moves by major exporters to curb production to support the market, which have been sustained.

Brent crude traded at around $67.40/bbl yesterday.

The increase in the crude price has encouraged a number of oil and gas firms to increase investment in new projects in areas such as the North Sea.

In January Shell approved plans to redevelop the giant Penguins field in the North Sea.

While conditions remain tough the outlook appears to be much brighter than it was in the three years after the crude price went into reverse in 2014.

Directors of Saltire Energy signalled confidence the improvement in market conditions will be maintained by increasing the book valuation of the group’s rental assets by £14m in the latest year, to £83m.

They had cut the valuation of the assets by £43.2m in the preceding year.

Mr Loggie wrote in the accounts: “The group has continued to invest in new equipment which directors believe will result in good long term growth for the group.”

The average monthly number of employees at the group increased to 65 in the latest year from 61.

The accounts state: “The Group continues to fund the Saltire in the Community initiative, providing life-changing opportunities for disadvantaged young people, both locally and internationally.”

Saltire Energy became sponsor of Aberdeen Football Club in 2014, and has supported its youth development programme since 2008.

Mr Loggie founded Saltire in 1986 after working in a jute mill in Aberdeen and serving in the Royal Air Force overseas.

In September 2016 he said: “Oil at $50 is the right price and the basis of a great future. It’s competitive ... and demand will grow.”