Home Offshore Energy Neptune Energy Annual Report reveals $2.1bn support for European economies

Neptune Energy Annual Report reveals $2.1bn support for European economies

Neptune Energy’s European activities supported 11,400 jobs and contributed $2.1 billion gross value added (GVA) in 2020, according to the company’s Annual Report and Accounts, published today.

The economic impact analysis, from Oxford Economics, quantified the direct impact Neptune has on the UK, Norway, Germany and the Netherlands through its operations, the indirect impact generated through its supply chain and the induced impact due to spending by Neptune staff and suppliers’ staff.

The figures for 2020 show that for every one Neptune employee in Europe, the company supports nine more.

•    In the UK, Neptune contributed $459 million to the country’s GDP and supported 4,160 jobs. For every Neptune employee in the UK, around 20 jobs were supported elsewhere in the domestic economy, primarily due to Neptune’s spend on capital goods and services.

•    In Norway, Neptune contributed $1 billion to the country’s GDP. Neptune supported 1,840 jobs and for every one Neptune employee in Norway, the company supported five elsewhere. Norway had the largest spend on capital goods purchases of the four European countries in which Neptune operates, with the majority on drilling rigs.

•    In the Netherlands, Neptune contributed $343 million in GVA to Dutch GDP and supported 1,670 jobs. For every Neptune employee in The Netherlands, around five jobs are supported elsewhere in the domestic economy. The Netherlands had the largest spend of the four countries on operational goods and services, mainly driven by helicopter transport and contractor costs.

•    In Germany, Neptune contributed $296 million in GVA to German GDP, supporting 3,730 jobs. For every Neptune employee in Germany, around eight jobs were supported elsewhere.

Since it was formed in 2018, Neptune has contributed an average of $2.5 billion to the four European countries’ GDP every year, underlining the important role E&P companies play in supporting local economies.

Jim House, CEO of Neptune Energy, said: “As economies start to recover from the impact of the COVID-19 pandemic, investment will be the cornerstone. Not only does investment put supply chains to work, but it also supports direct and indirect employment.

“As our significant capital investment programme continues into 2021, we expect to sustain our positive economic contribution, which will provide more opportunities for more people throughout the communities in which we work.”

Pete Collings, Oxford Economics’ Director of Economic Impact Consulting in Europe, added: “2020 was an extremely challenging year for the European economy with the COVID-19 pandemic. Yet, the impact of Neptune’s activities has remained significant, extending well beyond its core function of producing energy.

“Our research clearly demonstrates the significant contribution that a successful company can make to the economy and to the labour market.”

Neptune’s Annual Report also sets out the company’s three-year Environmental, Social and Governance (ESG) Roadmap which will take the company from embedding ESG into its business to demonstrating a solid track record of performance. This includes developing emissions reductions plans in its operating countries and scaling up partnerships and investments in low-carbon technologies such as CCS, hydrogen and electrification.