2. Editor in chief
Ariane Roos / Stork Technical Services
P.O. Box 2776, 3500 GT Utrecht
The Netherlands
Email: ariane.roos@stork.com
Editor
MaryJane Mudd / Full Tilt Communications
USA
Photography
Cees Roelofs Photography
The Netherlands, (page 4-7, 18-21, 32-35, 38-41)
James Woodward Photography
Australia, (page 14-17)
Jeroen van der Wielen / Studiodotcom
The Netherlands, (page 10-13)
Luis German Ramirez
Colombia, (page 36-37)
Maarten de Groot / Lenn Fotografen
The Netherlands, (page 8-9, 26)
Rory Raitt / Rawformat Photography
Great Britain, (page 28-31)
Studio Janssen
The Netherlands, (page 26)
Design
Phasis Communication Works
Eindhoven, The Netherlands
Printing
Lecturis
Eindhoven, The Netherlands
Credits
3. Contents
4 Doug Meikle
Stork Technical Services: an evolution
in progress
8 Theo Eysink
Strongly improved results for 2010
10 Nico Seymus
CHP team: the right people
for the right project
12 Otto Witjes
Collaboration with customers, partners,
to deliver success
14 Tony McAnulty
Culturally diverse region bound
by ONE Stork
18 Dittmar Pieper Martin Paulsen
Knowledge handed from one generation
to the next
Stork2010
22 Sreenivasan Puthenveetil
Middle East niche market brings growth
opportunities
26 Commercial highlights 2010
28 Donald Ballantyne
Acquisition expands reach, offers value
32 Martien Kennis
Powerful change, positive impact
36 Luis Echavez
Customer challenges: puzzles worth
solving
38 Bo Budé
Work variety, challenges, help young
employee soar
42 Financial highlights 2010
S t o r k T e c h n i c a l S e r v i c e s
2 0 1 0 A n n u a l R e v i e w
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Stork Technical Services
2010 Annual Review
3
4. Doug Meikle
CEO
Stork Technical Services
Stork Technical
Services:
an evolution
in progress In order to move forward,
Doug Meikle, CEO of
Stork Technical Services,
chose to look back.
After taking the helm of the company in late 2009,
he soon realized that the principle upon which
the company was founded had been strained by
the creation over the years of more than 100 active
legal entities - all a part of StorkTechnical Services.
The contributions of Stork Technical Services’
10,000 employees were evident, but the
company’s business model didn’t allow them to
offer seamless customer service.
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Stork Technical Services
2010 Annual Review
4
Stork
2010
5. “So I thought about our founder’s
words,”says Doug.“Charles Stork said,
quite simply,‘Our real vision is to serve
people. Create an environment where
people really like to come to work, and
serve our customers.’We are a people
company–75% or more of our costs are
in people. And yet, we were scattered in
a manner making it difficult to learn,
problem-solve, and present a consistent
face to the customer.”
It wasn’t long before Doug, Stork
Technical Services’senior leadership
team and others started listening.
They listened to employees, who
worked hard but believed their career
options were limited. They listened to
customers, who asked for turnkey
services from one company, not 100.
They listened to market leaders who
watched trends in global industries.
Then they responded by developing
ONE Stork: The combination of all the
legal entities into 6 global businesses
and 3 regional, with subsequent
product lines to serve customers around
the globe. The company also refined its
focus from being all things to all
customers to directly pursuing the Oil
Gas, Power and Chemical industries,
while not forgetting other key segments
such as Food, Pharma, Railway and
Mining.
The result? A company that is now
EUR 1 billion in scale, where people
are offered diverse and stimulating
opportunities for growth. A global
corporation with a value proposition
offering highly trained specialists who
conduct on-site maintenance as well
as develop and implement long-term
risk management recommendations.
What’s more, they do it with a
concentration on safety and deliver
the work in a quality, timely manner.
This one-stop-shop approach is what
Stork Technical Services calls‘Thinking
and Doing’, and Doug sees it as essential
if the company is to remain sustainable.
“After two years, I am completely
convinced that Thinking and Doing is at
the heart of our success. Customers are
juggling projects of tremendous scopes,
from new plant site construction to the
repair of loose bolts and jammed studs.
When they hire Stork Technical Services,
they can focus on consistent, reliable
production and let us handle the rest.
Many of our people work on-site with
the customer; some are a part of their
leadership teams. Overall, customers are
responding very favorably to our
seamless approach.”This may be why,
during a challenging global climate,
Stork Technical Services beat its 2010
operating performance targets across
the board. The fact that the company
operates in a business that utilizes
long-term contracts makes it less
affected by global economic troubles,
but the corporate culture of meeting
and exceeding customer needs is the
core of its success.
As the company has evolved, Stork
Technical Services’concentration on
Safety, Health, Environment and Quality
(SHEQ) has as well.“Safety has always
been central to our culture,”says Doug.
“But now we are treating it as an input
to our performance instead of
measuring it as an output.”He pointed
to the company’s new safety coaching
program, in which SHEQ employees
work alongside others, coaching them in
safe work performance, and an increased
focus on safety goals, meetings and
reports for Stork Technical Services sites
as well as customer sites.
Doug cites a breadth and depth of
Stork Technical Services across a larger
geography as part of the company’s
plan for future growth.“Our business
line model has changed how we offer
our services to the customer,”he says.
”Now we want to build our skills as well
as our reach in Europe, the Middle East,
Asia Pacific, North America and South
America.”
He also commented that although the
company has come a long way in going
from 100 companies to one, there is still
more to do to truly become ONE Stork.
“We have two to three more years to
go before all of our processes and
procedures are lined up behind the new
model. However, there is no question
that our people want ONE Stork to
succeed. With them behind it,
we can’t fail.”
Which brings us back to a company that
was founded on the principle of serving
people. Employees, customers and
shareholders. It’s what motivates the
CEO, and what will bring Stork Technical
Services into a continually sustainable,
profitable future.
“After two years, I am completely
convinced that Thinking and Doing is
at the heart of our success.”
“Now we want to build our
skills as well as our reach in
Europe, the Middle East,
Asia Pacific, North America
and South America.”
Stork
2010
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Stork Technical Services
2010 Annual Review
6. Strongly improved
results for 2010
2010 has been a year in which the global
economy showed a gradual return to normalcy
after the hectic previous years. World trade
resumed to grow, fueled by the expansion in
emerging markets. The economies of the
United States and Western Europe stabilized,
although the Eurozone faced considerable
turmoil in certain participant countries.
In general, the economic development had
a positive impact on Stork Technical Services
as a group. The home market in the Netherlands
profited from increased industrial activity just
like the activities in South America,
in particular Colombia.
Theo Eysink
CFO
Stork Technical Services
Marketing Sales
Asset Management
Consultancy
Rotating Equipment
Electric Equipment
Process Equipment
Integrity Solutions Services
Mechanical Services
Sales Rental Services
EI Services
Europe Menaap Americas
The order book increased further due to new contract wins as well
as contract extensions. Examples include the extension of the
maintenance contract with Akzo Nobel in the Botlek and Delfzijl,
the extension of the AJS offshore contract with Shell and NAM and
several big wins by Mecánicos Asociados S.A.,
the Colombian subsidiary.
Outlook for 2011
In the past year, Stork Technical Services has initiated its
transformation from a regional supplier of specialized services into
a global partner providing major companies in the energy and
process industries like Oil Gas, Power and Chemical with a
total asset integrity management through‘Thinking and Doing.’
The company is focusing on further successful and sustained
growth of its core activities.
The announcement of the acquisition of RBG in May 2011 is
consistent with Stork Technical Services’strategy to extend our
service offering and expand our global footprint. It represents a
strategic opportunity to acquire a complementary business
operating in geographies outside of Stork Technical Services’
current markets, including Azerbaijan, Kazakhstan, Trinidad
Tobago and the Gulf of Mexico. Furthermore, with RBG’s presence in
the UK, the acquisition has the added benefit of providing a more
balanced European operation, extending Stork Technical Services’
global footprint and increasing financial stability due to the
dispersion of operations.
Stork Technical Services will continue to devote a great deal of
energy and attention to the structural improvement of profitability
and capital intensity, with the ambition to be in the top of the
benchmark group. It will continue to invest in its customers, people,
products, technology projects and lines of business.
Stork Technical Services is dedicated to build superior asset
integrity, solutions and mechanical and electrical/instrumentation
businesses for future generations, generate adequate funding for
growth and as a result grow our shareholders’equity investment
accordingly.
Asset integrity for targeted markets goes further than the
mitigation on risks like injuries, environmental damage or loss
of production – it also has a direct impact on the reputation and
value of the companies concerned. This means that increasing
investments in asset integrity are being made in these industries,
and Stork Technical Services can make a significant contribution
to strengthening asset integrity for companies within those
industries. For Stork Technical Services and their customers,
this means greater business predictability, stability and long-
term growth.
Successful completion of the‘ONE Stork’
implementation
2010 found Stork Technical Services undergoing the first phase of
its“ONE Stork”transformation initiative by streamlining more than
100 disparate companies into a matrix organization of Business
Lines and Regions. With this transformation, Stork Technical
Services is meeting customers’demands to provide a convenient
single point of contact and an integrated services proposition.
In this operating model, there are six Business Lines
clustered by Asset Integrity and Solutions that
have global leadership, and three Business Lines
led on a more regional basis.
This model allows Stork Technical Services to offer:
• Full dedication to customer goals
• Flexibility to meet customer needs
• A true collaborative approach with the
customer
• The best workforce within a variety of
technical disciplines
• Uncompromising safety
• Sustainability
• Integrity and reliability
• Best of class asset optimization and
methodologies
• Understanding of customer values and cultures.
Financial Performance in 2010
The performance of Stork Technical Services has
improved considerably compared to 2009.
Net turnover increased with more than 10% as a
result of a number of large projects in Europe and
large growth in South America. Apart from the
higher turnover, the full benefit of measures taken
in 2009 led to an increased net result as well.
Asset
IntegritySolutions
Stork
2010
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Stork Technical Services
2010 Annual Review
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7. Nico Seymus
Project Leader
Services
Maintenance,
Belgium
Stork
2010
CHP team:
the right people
for the right project
“It sounds crazy, but it’s true,”says Nico.
“Consistent production is critical to our
customer and we can’t have a second
of down time. If anything happens,
we are called and we respond,
immediately. The customer can always
count on us.”
Managing the maintenance
organization for the CHP is Nico’s
primary area of responsibility, ensuring
the Stork Technical Services’team
stands united behind a clear customer
vision.“We can manage assets but we
need to have passionate people with
the right skills,”says Nico. “Making sure
everybody works as a team is my
priority. The focus lies on the use of
the right methods and combining
knowledge and experiences so we
are able to ensure reliable, consistent
production. It all comes more naturally
when one has the right people,
and at Stork Technical Services, we do.”
This may be why, along with
Stork Technical Services Operations
organization, we achieved a world
performance goal for the CHP plant’s
reliability in 2010.“We experienced
only a 0.4% outage, which is the result
of people interacting with our
techniques and working as a team.”
Nico credits Stork Technical Services’
multifaceted, collaborative approach
for ensuring customer reliability and
production.
“From the perspective of asset
management, you can’t put a clear line
between operations and maintenance;
they offer an equal share of value in
ensuring asset performance, and as
ONE Stork, we work together to make
things happen.”
Nico explains that much like Stork
Technical Services evolution from a
disparate group of companies to one
organization, the CHP relationship
started as a project but in five years
has become a program.“We initially
entered our relationship as a project,
with a project team. Given our
customer’s expanding needs,
we soon switched to a maintenance
organization, with much more
structure, continuous improvement
and an eye to sustainability. This is
change management. Maintenance
in a power plant is asset management;
a continuous process of maintaining
assets for a better reliability and
availability. It has no end, and
Stork Technical Services’has a lot
of experience in this domain.”
According to Nico, the phrase
‘Thinking and Doing’is not a hollow
one. Whenever he or his team
encounter problems, he can rely on
professional colleagues from different
branches. The power of Stork Technical
Services he believes, relies on the
breadth and depth of knowledge,
experience, field proven methods,
ONE Stork philosophy and passionate
people.“We can provide support for
the whole power train,”says Nico.
“We not only execute, we think as
partners to find sustainable solutions.
As more and more companies rely on
the expertise of their main contractors,
we act on this role.”And sometimes
that means a midnight call on your cell
phone. Like Stork Technical Services
men and women around the world,
this team will stop at nothing to ensure
the consistent, reliable integrity of
the customer’s assets.
There are team members who say
they are committed to the customer,
and then there are team members
who sleep at night with cell phones by
their heads in case the customer
needs them. Which one do you think
Nico Seymous, Project Leader for
Services Maintenance of a major
Belgium combined heat and power
(CHP) plant, leads?
10 11
Stork Technical Services
2010 Annual Review
1110
8. Stork
2010
Otto Witjes
Project Director
NAM, The Netherlands
Collaboration
with customers
and partners,
to deliver success
The Thinking and Doing culture upon which Stork Technical Services
bases its corporate strategy may be summed up by the fact that
Otto Witjes, Project Director for one of the largest undertakings in
the company’s portfolio, does not like to use the word project.
“It’s too limiting,”says Otto.“With a project, you have a beginning,
a middle and an end. A project can be done within a silo, by one
organization. What my team and I are doing is partnering within
a joint venture and collaborating with the customer to provide
ongoing, long-term services to NAM. It’s a program, not a project.”
Established in 1947, NAM (the Nederlandse Aardolie Maatschappij
B.V.) is active in the exploration and production of crude oil and
natural gas in the Netherlands and the Dutch part of the
Continental Shelf. Equally owned by Shell and ExxonMobil, NAM
is by far the largest producer of natural gas in the Netherlands, with
an annual production amounting to nearly three-quarters of all
natural gas produced from Dutch soil.
Says Otto,“Our joint venture mission statement is‘We want to make
this asset the best asset of Europe.’That means delivering the best
production at the lowest costs with the highest degree of safety.”
The joint venture, called GLT, delivers brownfield capital projects
and brownfield modifications and maintenance on a regular basis
for NAM while also managing 20 gas-producing installations
throughout The Netherlands. Stork Technical Services plays the
largest role within GLT and Otto is the program leader, enjoying the
customer collaboration that comes with the job.
“We work as an extension of their organization,”says Otto.“It’s not
a typical supplier-customer relationship.”All disciplines within the
joint venture, from engineering to planning to field maintenance,
are housed within one building, right next to the customer.
“We are a primary example of ONE Stork, working side by side with
our partners and interacting daily with our colleagues at NAM.”
Sometimes his work requires tough decision-making.
Otto remembers when they started out on the NAM contract and
the customer asked how they could save money while maintaining
efficient, safe performance. Stork Technical Services decided to
downsize as necessary and stretch their people harder and
further– without a single accident or loss in production.“It was
about meeting our customer’s needs, and Stork Technical Services
will go to every length to make that happen.”
This may be why Stork Technical Services holds a long-term
contract with NAM and takes on new projects like installations,
plants, modifications and maintenance on a regular basis as well as
why the organization puts its trust in GLT and Stork Technical
Services.
“The men and women of Stork Technical Services have such a
passion for meeting customer challenges in a multi-disciplinary
way. Many companies say they think and do, but our company has
it ingrained in its culture,”says Otto.“For us, it’s common to handle a
project plus maintenance and modification in the same day, in the
same week and in the same installation. Only the most
knowledgeable, committed, skilled people can do this,”he says.
“This is what sets us apart, and what will bring us into the future.”
Which brings us back to project versus program. No matter what
you call it, the thread of Stork Technical Services’can-do spirit and
customer focus will impact every hour of every day, until GLT does
indeed make NAM the best asset in Europe.
12 13
9. Stork
2010
Tony McAnulty, Vice President, Asia Pacific
Culturally diverse region
bound by ONE Stork
As far as Tony McAnulty is concerned, the diverse
knowledge, skills, experiences and cultures shared
by the people of Stork Technical Services help
it deliver top rate asset integrity services to world-
class customers. It’s the common denominator
of a “customer focused attitude,” though,
that binds its 10,000 employees together and
motivates them to do their best.
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Stork Technical Services
2010 Annual Review
10. “You could be in Saudi Arabia, The Nether
lands or in New Zealand. It doesn’t matter.
The same customer focused attitude exists,
and it creates an energy level and collabo
rative spirit that I haven’t experienced
anywhere else,”he says.
As Vice President of Stork Technical Services’
Asia Pacific region, Tony understands the
power of a customer-centric attitude
fueled by a passion for delivering results.
Stork Technical Services teams in the region
think and do on behalf of 200 customers,
running projects from multi-million dollar
new builds to day-to-day maintenance
needs. Nearly all work is done on customer
sites, alongside managers of corporations in
the Chemical, Oil Gas, Power and Mining
industries. When Tony considers the Stork
Technical Services people who work in his
region, he says,“The ONE Stork strategy
means that people from different
nationalities are interacting more; these
shared experiences can only be good for
Stork Technical Services and our customers.”
Indeed, customers in the Asia Pacific region
appreciate a company that can supply and
support a wide range of products and
services, primarily because they have
multiple sites in very remote locations.
Tony points to customer conversations
focused on the importance of integrated
service offerings across their sites as well
as an understanding of operating and
safety requirements, policies and
procedures. The diverse nature of Stork
Technical Services’offering is ideally suited
to provide value through the new Business
and Product Line model, where all needs
are met while maintaining a‘one point’
management contact.
Stork Technical Services’brand promise of
Thinking and Doing is backed up by
training and career development, ensuring
that people maintain their edge. In the past
24 months, the Asia Pacific region has
invested substantially not only in training
to keep employees at the forefront of
technology, but in Safety, Health,
Environment and Quality competencies as
well.“The ONE Stork model required very
little training, though,”says Tony.
“The ONE Stork strategy immediately made
good sense to people. There is a great deal
“Meeting or exceeding customer
expectations at an operational level
frequently evolves into a solid
business relationship.”
of logic behind sharing the synergies of
day-to-day business relationships and
working as one large team. In today’s
competitive landscape, you need to play to
your strengths, and having a 10,000-person
team is a great strength. Our customers
understand now more than ever that we
are international and progressive, offering
new and alternate solutions based on
their needs.”
Trust is another benefit derived from
Stork Technical Services’customer-centric
attitude. Says Tony,“Meeting or exceeding
customer expectations at an operational
level frequently evolves into a solid
business relationship once trust is
established, and that’s key to long term
success. I am proud to say many of our
personnel in the Asia Pacific region serve
on customer planning and maintenance
management committees.This demonstrates
the level of trust that our customers have in
our people through their dedication and
attitude to go the extra mile for them.”
Tony’s experience running business
operations for very large geographic
areas – the Middle East, North Africa and all
of Asia Pacific – allows him a knowledgeable
view of how his part of the world will
impact the company’s sustainable growth.
“The Asia Pacific region offers Stork
Technical Services one of the greatest
opportunities for growth in the next few
years,”he says.“Forecasting shows that in
Australia alone, about $214 billion will be
spent primarily in the Oil Gas, Power
and Mining industries. And, the growth
economies of China and India underpin
raw material offerings from Australia.”
He is certain that a sustainable market
expansion of this nature provides a safe,
steady basis for double-digit growth.
What’s more, Stork Technical Services’
diverse employee population will be
working side by side with customers to
ensure the company realizes growth as well.
“I think this is what I like most about
my job,”he says.“Seeing everyone work
together to make things happen.
You can call it our culture, our diversity,
or the customer-focused attitude our
employees share. Either way, it spells
success.”
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Stork Technical Services
2010 Annual Review
Stork
2010
11. Knowledgehanded from one generation to the next
1918
Stork
2010
Stork Technical Services
2010 Annual Review
12. Workshop foremen and trainees work together at
Stork Technical Services’ plant in Essen, Germany to deliver
high-quality products on time. They learn from one another
as experience from the ‘old dogs’ and ideas from young
people come together to the benefit of the customer.
Dittmar Pieper has been engaged as workshop foreman
and trainer in the Essen plant since June 1st, 2009.
He ensures that work flows are correct and assumes
responsibility for employee work planning and moni-
toring the work stations. He arranges individualized
exercises and instructions for the younger staff, the
trainees.“I enjoy working with young people,”says
the 44 year old trainer.“After all, this allows me to pass
on the knowledge I have gained so my successors
can in their turn communicate it to others.”
And young people benefit from this.“I am learning
so much,”reports Martin Paulsen, a trainee,“No one
is looking over my shoulder all the time, but I get
answers to my questions and a number of things are
explained. It helps to have the manual operations
shown to me from time to time.”
Martin has been undergoing training at Stork Technical
Services since November of 2008. If all goes well, he will
be able to take his final examination in December of
2011 or next January.“It’s not exactly child’s play, but I
am optimistic. I still have a lot to learn.”And what future
plans does a young person like this have during his
training?“I would like to stay with Stork Technical
Services and hope to work in assembly at some point,
but first I still have a good deal of learning ahead of me
and I want to gain practical experience.”
The trainer is responsible for learning. Dittmar Pieper
enjoys working with the trainees, and can teach them
a great deal due to many years of professional
experience.“It’s great to get to know the guys in the
three-and-a-half years of training and learn where their
strengths and weaknesses lie. Then I can train them for
our company and for the positions for which we need
them.”
Dittmar and Martin believe the elements that follow
set Stork Technical Services apart in terms of offering an
outstanding training experience for its employees,
ultimately benefitting the customer:
Independence: “I am offered freedom here, too”, Martin
announces with pride.“I’m assigned a project for which
I develop an initial solution approach. I review the
project, make notes and sketches, and finally discuss it
with the foreman.”The workshop foreman considers
this the correct approach:“It can’t all be one-way traffic,
with everything coming from the top down,”says
Dittmar Pieper, Essen plant foreman.“I’m always open
to new solution approaches,”he says.
Stork Technical Services helps in this process:
Martin attends pneumatics and hydraulics courses,
for instance, so he is optimally prepared for his final
exam. But Martin has access to continuing education.
“I want to learn more in the areas of computerized
numerical control or quality assurance management,”
he says.“We discuss together which courses could be
useful. At Stork Technical Services, there are no limits
to what you can learn.”
Customer Advantages: Constant learning and
continuous exchange surely provides added value
for the customer.“Customers notice this with respect
to quality and also of course to adherence to deadlines,”
Martin says.“And when we once again succeed in
achieving something new, our customers are pleasantly
surprised.”In addition, special performance results in
special satisfaction.“We work in a very flexible manner.
If a customer calls, we are always there and can fulfill
requests as quickly as possible.”It’s important to be
able to offer such added value in a time of increasing
competition.
Motivation:“We must motivate our people to achieve
tight deadlines,”Dittmar says.“But at Stork Technical
Services, you can contribute your own ideas, which,
along with accomplishments, are appreciated.
This in itself is highly motivating. On top of this, we
are open and honest in our dealings with one another.
We discuss things even if they may be negative
at times.”
As a result, every employee is happy to come to the
Essen plant each day. And who knows what the future
might bring? Dittmar may like to be production
manager one day. Martin wants to work in assembly.
There is no reason that with the type of training Stork
Technical Services offers, along with its collaborative,
Thinking and Doing culture, these aspirations will not
soon become a reality.
“If a customer calls, we are
always there and can fulfill
requests as quickly
as possible.”
20 21
“There are no
limits to what you
can learn.”
Stork
2010
Stork Technical Services
2010 Annual Review
13. Sreenivasan
Puthenveetil
Assistant Regional
Controller, Middle East
Saudi Arabia
Middle East niche market brings
growth opportunities
From where Sreenivasan
Puthenveetil stands,
the company’s future
has never looked brighter.
22 23
Stork Technical Services
2010 Annual Review
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Stork
2010
14. “Collaborating in an innovative manner with
customers and global leaders is key to
improving regional and global competitive
ness,”says Sreenivasan, Assistant Regional
Controller for Stork Technical Services’
Middle East region.“Stork Technical Services’
very culture is one of collaboration and
problem solving. Now, as the ONE Stork
evolution within the Oil Gas market takes
hold, we are positioned for greater success.”
About 80% of the world’s readily accessible
crude oil reserves are located in the Middle
East, with 62.5% coming from the Arab Five:
Saudi Arabia, UAE, Iraq, Qatar and Kuwait.
Screenivas points out that as these
countries continue to invest in Oil Gas
exploration and production, Stork Technical
Services’opportunities will grow.“We have
the advantage of being a global company,
with state-of-the-art communications
channels resulting in excellent planning
and coordination. International companies
like SABIC and Saudi Aramco value this.”
Sreenivasan believes that Stork Technical
Services’culture of Thinking and Doing has
always put it ahead of other asset integrity
services suppliers. However, by evolving
from a company trying to be all things to all
people, to one focused almost completely on
the Oil Gas, Power and Chemical segments,
Stork Technical Services is now poised for
the niche concentration it needs to garner
profitable growth in the Middle East.
He explains further that Chemicals giant
SABIC and Oil Gas leader Saudi Aramco,
as well as others, appreciate that Stork
Technical Services:
• Places the highest priority on the health
and safety of employees while ensuring
that work is done in the safest, most
efficient manner.
• Fully commits to providing reliable asset
integrity services based on an inherent
understanding of customers’businesses,
industries, risks, and the critical nature
of uninterrupted production.
• Positions people around the globe and
around the clock to ensure seamless
service, uninterrupted production –
and ultimately, peace of mind.
Sreenivasan doesn’t overlook the Middle
East’s recent unrest as he considers the
future.“There have been some challenges
in the region, but the outlook for Stork
Technical Services is good. In a geography
committed to Oil Gas growth, related
activities like refining – for which Stork
Technical Services offers many services –
will grow as well. We have the infrastructure
and the culture to be there every step of the
way,”he says.
“We have the advantage of being
a global company, with state-of-the-art
communications channels resulting
in excellent planning and coordination.”
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Stork Technical Services
2010 Annual Review
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Stork
2010
15. The Netherlands
Relocation of complete OCI Nitrogen plant
from IJmuiden to Geleen.
United Arab Emirates
Habshan 5 Process Plant: heat treatment, non destructive testing and advance inspection
for Kharafi National Co. LLC, contract duration 18 months.
Commercial
highlights2010
Australia
Worsley Alumina EG MFC Boiler upgrade,
non destructive testing and heat treatment services
Inspection services for McConnell Dowell at
BHP’s Rapid Growth Project 5 6 Expansions
Colombia
4 years operation and maintenance service PETROBRAS
of the oil fields Guando, Matachines and Purificacion
4 year maintenance contract OCENSA (Ecopatrol)
Oil Pipeline from Cupiagua to Coveñas and from
Vasconia to Coveñas
Malaysia
Supply of topside corrosion monitoring system for
deepwater Gumusut Kakap facilities
The Netherlands
Long term service contract NAM at Groningen Gasfield
United Kingdom
2 year contract extension on the continued monitoring
and maintenance of a ConocoPhillips pipeline integrity
management production
Contract with Fairfield Energy to measure pipewall
thickness by using a remotely deployed crawler video
system
Stork
2010
2626 27
Stork Technical Services
2010 Annual Review
27
16. 28
Stork
2010
Acquisition expands reach,
offers value
Donald
Ballantyne
Sales Director,
Inspection Testing
Services
“The bottom line is seamless
service for our customers.”
2928 29
Stork Technical Services
2010 Annual Review
17. Donald Ballantyne has seen it all. With more than 20 years
of technical field engineering experience in the international
Oil Gas industry – many of them with Stork Technical Services –
he can stand back and look at where the company was,
where it is and where it’s going.
Stork
2010
This may be why Donald is pleased with Stork Technical
Services’recent 100% acquisition of iicorr, the company’s
Inspecting Testing Services product line.
“The timing was right for ONE Stork. Our people have
always been dedicated, but that dedication sometimes
equated to various Stork Technical Services people
calling on the same customer. It was inefficient,”
says Donald, Sales Director Inspection Testing
Services.“Once the Business and Product Line model
was created and merger and acquisition (MA) strategy
determined, it made complete sense to acquire iicorr.
The bottom line is seamless service for our customers.”
The Inspection Testing Services
product line consists of specialists
in integrity, inspection and
corrosion, who provide
consultancy, management,
engineering and operational
support in the Oil Gas, Process,
Utilities and Marine Industry
sectors. Clients served by this
Product Line are some of the
largest corporations in the world.
Says Donald,“Part of Stork Technical Services’vision is to
acquire asset integrity management businesses serving
our target segments while also adding value to our core
businesses. We do both.”
He explained that iicorr expands Stork Technical
Services’presence into the upstream Oil Gas market
while extending the range of value the company can
offer the customer. The company was also achieving
20% growth per year, making an acquisition a good
addition to Stork Technical Services’bottom line.
Likewise, iicorr now has the strength of a global
corporation and its resources at its disposal.
“It’s a win-win relationship. We weren’t well known as
iicorr in some geographic areas like the UK, and the
Stork Technical Services name opens doors. We can also
tell current and prospective customers they will not
only receive our proven iicorr products and services,
but the strength of the parent company as well,”
he says.“It’s an economy of scale: our customers receive
a broader pool of services, but with less risk, and in
some cases, at a lower cost. Since everything is under
one roof, the customer benefits tremendously.”
Donald points to new technologies as another oppor
tunity for profitable growth. The UK, for example,
is going to be one of the largest investors in offshore
wind farms as a source of renewable energy. By pooling
resources and working across different Stork Technical
Services disciplines, the company is well positioned to
pursue this part of the
Power segment. Iicorr may
not have had access to this
market in the past, or new
offshore customers. As part
of a matrix organization,
it does.
Coming back to ONE Stork,
Donald says,“Beyond a
greater breadth and depth
of services under one roof,
our attention to best practices is evident. For example,
our Safety, Health, Environment and Quality (SHEQ)
practices have always been good, but they are stronger
than ever before. This is evidenced in our procedures,
training programs and communications. Stork Technical
Services SHEQ managers come to our sites and discuss
procedures, and safety stays front and center in our
minds through bulletins and newsletters.”
Donald also views Stork Technical Services’rebranding
effort as beneficial.“As part of our parent company,
iicorr now has a clear identity. And as an asset integrity
management company differentiated by Thinking and
Doing, Stork Technical Services is creating a global
brand. I think it’s been good to see an established and
respected company transform to be able to grow on a
global scale.”
After all, he should know – he has seen it all!
“Since everything is
under one roof, the
customer benefits
tremendously.”
Stork Technical Services
2010 Annual Review
18. Martien Kennis
Vice President, Integrity Solutions Services
Powerful change,
positive impact
When Martien Kennis considers
Stork Technical Services’ recent history,
he immediately comments on the
transformation of a fragmented
company into ONE Stork by way of the
organization’s new, customer-centric
business model.
32 33
Stork Technical Services
2010 Annual Review
Stork
2010
19. The customer was pleased to receive:
• Cost savings in areas including single project managers for both
projects and the talents of multi-skilled personnel.
• Project planning and efficient changes based on market demands
and client needs.
• Safety, health, environmental and quality requirements were
either met or exceeded.
“We’re able to serve our customers on a more global platform,”says
Martien,“as evidenced by the evolution of our own management.
More and more, people are coming in from around the world to
offer their talents in planning and execution. Our executive team
is representative of this, and my own management team is half
Dutch and half consisting of global members. This gives us greater
access to our customers in the global Oil Gas, Power and Chemical
sectors. We can meet their challenges and solve their problems
head on, anywhere and at any time.”
Martien also believes the Stork Technical Services culture of
rewarding knowledge, skill and dedication has impacted his own
career.“I’ve been trusted with a large role at a relatively young age,”
he says.“This makes me very loyal and even more focused on our
value proposition of Thinking and Doing. Similarly, now that we’re
10,000 strong, employees realize that they have a great future with
the company. This equates to work satisfaction, greater productivity
and a sustainable future for Stork Technical Services.”
Customer focus. Global reach. Seamless synergy. Dedicated
employees. And above all, Thinking and Doing. There’s power
in that.
“The word‘transformation’means to change in a dramatic or
thorough way,”says Martien, Vice President of the company’s
Integrity Solutions Services business line.“Stork Technical Services
has always been a good company, built on the heritage of an
innovative leader and value offered by dedicated, skilled
employees. But the combined strengths of 10,000 Stork Technical
Services professionals, more accessible than ever to the customer,
are the powerful result of our ONE Stork transformation. There has
been an incredibly positive effect on our company and customers.”
As the head of one of the company’s largest, most international
Business Line, Martien has a clear view of the start-to-finish asset
optimization services Stork Technical Services men and women
deliver every day.
“It’s something to see people in Europe, the Middle East,
Saudi Arabia and Australia connecting on behalf of a specific
customer to provide turnkey services. In the past they might have
worked in functional and regional silos, causing internal
inefficiencies and some external confusion,”he says.“Now it’s
streamlined. It’s smooth.”
Martien points to a recent example to drive the point home:
The company’s Integrity Solutions Services business line recently
received two inquiries, independent of each other, for heat
treatment and nondestructive testing services for a world class,
international corporation. These projects may have been quoted
separately in the past, but Stork Technical Services collaborated
with both client departments to propose and deliver an overall
menu of individual and combined services.
“Customer focus.
Global reach. Seamless
synergy.”
Stork
2010
34 35
Stork Technical Services
2010 Annual Review
20. “At the very beginning of our meetings,
customers simply state what they need,”
says Luis, located in Stork Technical Services’
Columbia region.“It’s very cut and dry, and
we always deliver on time, within budget
and with the utmost regard for safety.
Eventually, a relationship is developed and
discussions occur about real asset integrity
problems and creative solutions.
Our Thinking and Doing culture allows us
to share their problems and undertake
difficult challenges working alongside the
customer.”
According to Luis, some of Stork Technical
Services’core traits and offerings most
valued by customers include:
Knowledge: Luis believes his customers
have come to understand that Stork
Technical Services is a knowledge-based
asset integrity management company,
and they are open to learn from us.
“We collaborate with our customers
regarding reliability and integrity, strategy
and processes, and asset management
improvement and implementation,”
he says.
Consultancy sales manager Luis Echavez views each customer
meeting as a possible business case. Better yet, a puzzle in need
of just the right pieces to ensure an optimal outcome.
Customer challenges:
puzzles worth solving
Life Cycle Considerations:“Many of our
customers in Colombia are within the
Oil Gas and Mining segments, but as
global consultants, we stay abreast of
techniques and regulations – such as safety
and government – beyond these markets,”
says Luis. For example, Luis and his team
view assets from the perspective of their life
cycles. They encourage customers to
consider best practices and specific
processes from the very beginning, in the
design phase of the asset. They work with
them to set up the right policies, strategies
and action plans right from the beginning.
Business Modeling:“When customers say
they want basic maintenance assistance,
we provide it . But we also offer business
modeling, which is a very good exercise,”
he says. Luis points out that it always makes
sense to review an asset management
integrity strategy and determine how it fits
into the company’s broader business
strategy. From there, customers can make
adjustments if necessary and pursue
specialty activities to ensure reliable
production.
“None of these offerings are more
important, though, than the very value
proposition Stork Technical Services offers
customers around the globe,”says Luis.
It’s about Thinking and Doing. Customers
call us because they want their machinery
to be more reliable. Or they want us to teach
their engineers how to deliver reliability
through tested methodologies. They call
us for different things, but the fact of the
matter is we can do it all. Our breadth of
business leaders, engineers, technicians
and others enable us to offer OEM-level
capabilities as well as long-term risk analysis.
It is absolutely who we are.
Luis thinks this is a great time to be a sales
manager for Stork Technical Services in
South America. The Oil Gas market
continues to develop; yet Luis points to
mining as another area for significant
regional growth. Indeed, mining for resources
like coal, gold and copper has represented
30 percent of all Colombian exports over the
past 10 years.“These are capital intensive,
asset-based businesses Stork Technical
Services can pursue on a regional basis,”says
Luis.“We’re excited about the opportunities
before us as ONE Stork in such a thriving
business market.”
With each puzzle piece – customer
collaboration, Thinking and Doing,
innovation, and more – the optimal
outcome for Stork Technical Services
is the same as it will be for Luis’
customers: reliable, consistent
production leading to profitable
growth.
Luis Echavez
Sales Manager, Columbia
“We’re excited about the
opportunities before us as
ONE Stork in such a thriving
business market.”
Stork
2010
36 37
Stork Technical Services
2010 Annual Review
21. Work variety, challenges,
help young employee soar
“What makes
Bo Budé happy to go
to work each day?”
Bo Budé
Project Manager, On-site
Machining Bolting Services
3938
Stork
2010
Stork Technical Services
2010 Annual Review
22. Or perhaps it’s the opportunity Stork
Technical Services has given her to grow
professionally since joining the company
just a few years ago. Maybe she values the
no-nonsense, transparent culture that
allows a driven professional like Bo to make
her own way in a global corporation
focused on continued, profitable growth.
Perhaps it’s all these things, and more.
“I need consistent challenges, and I get
that at Stork Technical Services,”she
explains. This may be an understatement
for a young woman whose work has led her
to be named by Stork Technical Services as
‘Young Professional of the Year’, a corporate
honor in which she will soon compete with
others in her country to be named the
Young Professional of The Netherlands.
Bo joined Stork Technical Services in
March 2009 as Strategic Market Analyst,
where she was tasked to investigate and
build the business case for developing
energy efficiency opportunities from waste
heat. “It was my first chance to be part of
something very big,”she says.
It could be the variety that comes from blending
hands-on maintenance management with problem-
solving skills attained from Engineering Bachelor’s
and Operations Management Master’s degrees.
Her next position was operational, in which
she played an instrumental role in inventing
a new hosting equipment inventory system.
“Right from the beginning,”she says,
“I went from a business-driven role to an
operational position. This type of variety in
a career is stimulating and motivational.”
In her Operations position, Bo created and
presented layout concepts that eventually
led to fewer inventories, which in turn
resulted in more control, reduced waste,
and cost savings associated with storing
large amounts of product.
She was next tapped by CEO Doug Meikle
to participate in mergers and acquisitions
as Executive Assistant. Here, she helped
create Stork Technical Services’new
ONE Stork business model.“We listened to
the customer. The customer needed a more
streamlined supplier of asset integrity
management services, which is how the
Business Line and Product Line model
came about.”Although Bo noted the initial
challenges of bringing 100 companies
together to form ONE Stork, she points out
that customers can now expect global
consistency regarding:
• Uncompromising safety
• Full dedication to customers’goals
• Flexibility to meet customers’needs
• A true collaborative approach
• The best workforce within a variety
of technical disciplines
• Sustainability
• Integrity and reliability
• Best of class asset optimization and
methodologies.
• An understanding of customer values
and cultures.
Now, as Project Manager for On-site
Machining and Bolting, Bo concentrates on
developing this business in The Netherlands
and making it grow. Given her track record
with the company, there is no doubt she
and her team will do just that. When asked
what she likes most about her position at
Stork Technical Services, she points to the
breadth and depth of talent and diversity
among the work teams. She enjoys coming
together with people of different back
grounds to help create something of quality
for the customer. When asked about other
factors that equate to a positive work
experience, she had this to say:
Teamwork:“Stork Technical Services thrives
on teamwork. On any given day, we have
maintenance teams, technicians, business
executives and others Thinking and Doing
on behalf of our global customers.”
Employee training:“My own acclimation
process has been an excellent one.
We continue to offer opportunities to those
who wish to grow and develop, no matter
what their role is in the company. Anyone
who wishes to grow in their career can do
so at Stork Technical Services.”
Customer collaboration: “We have always
put customer collaboration front and center
at Stork Technical Services. Now, with our
ONE Stork business model, we are better
equipped than ever to provide one-stop,
turnkey service by working with, and for,
our customers.”
Diversity:“I feel that I have had great
opportunities to develop my career in
a traditionally male-dominated industry.
If you do your job well, you will be
rewarded.”
As for Bo’s‘Young Professional of the Year’
competition, it will not be known for a few
more months as to whether she was
selected as the Young Professional for all
of the Netherlands. Whether she is named
to that honor or not, her accomplishments,
team spirit and daily contributions make
her a winner to us!
“We are better
equipped than
ever to provide
one-stop,
turnkey service.”
Stork
2010
4040
Stork Technical Services
2010 Annual Review
23. • Excellent 2010 financial results despite challenging market environment:
- Net turnover growth of 11%
- Improvement of profitability to almost 8% EBITDA margin
- Solid cash flow.
• Continuous focus to further improve safety performance.
• Successful completion of the first phase of‘ONE Stork’implementation;
meeting customers’demands to provide a convenient single point of contact and
an integrated services proposition.
• Confirmation of the strategy for 2011-2015 including strong growth ambition,
both organic as well as through acquisitions.
• Increase of the order book with 14%, solid base for further growth.
2010 2009 2008* 2007* 2006*
Net Turnover 981 886 1,000 902 670
Result before depreciation and amortisation (EBITDA)** 77 58 91 90 63
Operational result** 43 28 51 68 50
Order book 602 529 456 270 173
Number of employees at 31 December 9.443 8.411 9.116 7.996 4.773
Key financial figures
* Years before 2009 are presented for reference purposes only and are unaudited.
** Excluding the settlement of the pension recovery premiums.
Financial highlights 2010
Stork
2010
42
24. Order book
(in € million)
Number of employees
(at 31 December)
Net Turnover
(in € million)
0
250
500
750
1.000
0
250
500
750
1.000
2006*
2007*
2008*
2009
2010
2006*
2007*
2008*
2009
2010
EBITDA
(in € million)
0
25
50
75
100
0
2.500
5.000
7.500
10.000
2006*
2007*
2008*
2009
2010
2006*
2007*
2008*
2009
2010
25. Stork Technical Services
Van Deventerlaan 101, 3528 AG Utrecht
P.O. Box 2776, 3500 GT Utrecht, The Netherlands
www.storktechnicalservices.comThinking and Doing
