UK oil & gas services sector doing well
10 May 2012
Aberdeen, UK - Gross revenues generated by the UK oil & gas well services sector grew by 28% to £1.7 billion in 2011, while earnings (EBITDA) rose 23% to £273 million, according to Oil & Gas UK figures.
The sector invested 20% more in future capacity, spending £111 million - half on capital equipment, the other half in new technology. Skilled employment rose 10% to 13,000, including 2,000 graduate engineers and 1,500 technicians, a report by the industry body also found.
“This latest report illustrates how the £57 billion wave of spending on UK oil and gas projects in 2011-13 that was highlighted in our Activity Survey is boosting activity and jobs in the well services business. Ken Cruickshank, Oil & Gas UK’s supply chain manager.
For 2012, gross revenue is forecast to rise by 6% and EBITDA by 30%, added Oil & Gas UK, noting that equipment shortages, reluctance among clients to trial new technologies and skills issues were raised as challenges to future growth.
“With strong spending on UK oil and gas projects forecast to continue, the well services sector has the potential to grow even further and of course, we are yet to see the effects of the measures announced in the 2012 Budget to stimulate investment in UK oil and gas projects,” commented Cruickshank.
