Subsea equipment make Royal IHC upbeat about prospects as it grows workforce

Bosses at the North East-based arm of the international engineering group said they expect to see more orders this year

Offshore engineering specialist Royal IHC says geopolitical instability, energy security concerns and a trend towards lower carbon alternatives are fuelling opportunities for its operations in the North.

The UK arm of Dutch shipbuilding and subsea group, which operates from Newcastle offices and a Port of Blyth base, is upbeat about its key oil and gas, offshore renewables, and telecommunications markets. New accounts for the 118-strong business show turnover was broadly flat in 2025 at £20.3m but with a return to operating profit of £8.6m, following the previous year’s £79,000 loss.

Gross profit at the maker of pipe and cable lay equipment, among other products, was £1.4m, compared to £5.4m in 2024. Last year’s figure included a £5.15m write down of stock, without which gross margin would have been £6.5m, 32%.

During the year, Royal IHC workers supported several offshore energy projects including helping clients with installation and commissioning two pipelaying vessels. They also delivered upgrades, servicing and spare parts for existing offshore sites.

Bosses said demand for fibre optic cables in the offshore telecommunications market grew, driven by demand for high speed global connectivity and also a growing sense of vulnerability with protection and resilience becoming more important. The North East base secured work on the design and building of two new cable laying vessels that will be equipped with the firm’s laying and burial systems, along with jetting ploughs, launch and recovery systems.

There was also the sale of a four-tracked trencher vehicle, the building of new tensioners which are used to lay and pick up subsea power cables that connect wind turbines and send energy between countries, and the commissioning of a modular cable lay spread which is designed to speed up the installation and repair of offshore wind cables.

Equipment rentals also boosted the results with the firm investing in construction of two new 15-tonne tensioners. That will add to Royal IHC’s fleet, which will also be upgraded to run on bio-oil in a bid to become more sustainable.

A spokesperson for the firm said: “Royal IHC Limited has delivered a strong performance in 2025, reflecting a period of positive transformation and high-level growth for the business. This progress is supported by a robust pipeline of confirmed orders, with the business well placed to respond to significant opportunities across its core markets.

“In the past 12 months, Royal IHC Limited has expanded its workforce with 31 new recruits across all areas of the business. The company plans to increase personnel further over the coming year to support the delivery of upcoming projects and future orders.

“Royal IHC Limited remains committed to investing in local talent across its North East facilities and supporting early-careers development through its graduate and apprenticeship programmes.”