ETPM News
Oct 17th - Aberdeen
Since writing the piece below in February of this year the industry has as anticipated been a busy one for those companies in the Marine and Subsea sectors. Listed companies results in Europe have been good for the first and second quarters of they year with profitability thankfully, at higher levels than the same period last year. Regionally, Europe. Latin America and West Africa all appeared to be pretty active however the Gulf of Mexico and the S East Asian markets have been slower. European Renewables has seen a busy season with new installation tonnage entering the market and winning work and cable lay and trenching activity also seeing new entrants. Contracting rates have been competitive but perhaps this will change in 2012 as demand for marine and subsea equipment is projected to increase.
However the biggest challenge for most companies has been working capital and cash flow as the finance sector still seems to be jittery on the lending front. Thankfully no additional contractors have gone bust since February 2011 and it is hoped this remains to be the case. On the brighter side we are seeing a few signs of Mergers and Acquisition activity recovering and it is expected to see this continue with large organisations with weak balance sheets possibly being targeted.
Overall the green shoots of recovery are evident for our industry which is both welcomed and encouraging for us all.
Securing the best talent. "It's All (Definitely) About People"
This area will in time be a powerful tool for clients to be able to access an oasis of talent via the latest website DBase technology. At present we are developing this section, so please pop back in the not too distant future and see for yourself if this facility will be of assistance to you. If it is not - let us know your thoughts and we will attempt to improve the usability of this web application.
In the current employment market the candidate holds a strong position with multiple opportunities to choose from on an ongoing basis as the price of oil sits at over $100 / Barrel and the Offshore Renewables market competes with the Offshore Marine and Subsea industries for quality and competent personnel. Market forces mean permanent salaries and contract rates are on the increase and employers will compete to secure the best talent available. One school of thought was that with the demise of a number of contractors that personnel would be available in abundance however, the current market position indicates that industry has been able to absorb the people who have been made redundant by the administrators / receivers over the recent winter months. (Let's hope we have now seen the last of fellow industry company's going to the wall).
The 2011 season looks as though it is going to be a busy one with activity levels above those seen in 2010 however the Oil Company's now appear to have had the upper hand in pricing negotiations as Contractors and Ship Owner margin's have been squeezed. First quarter financial reporting from the publicly listed companies reflect the margin squeeze which will probably render an overall busy year but bottom line profits being challenged.