Business Outlook 2018

4.1 Financial Performance

1

Figure 7 shows how revenues fell across each sector of the supply chain in 2016 – the most recent year for which firm data is available – by a total of 15 per cent to £30.2 billion.

Although 2017 was viewed by many as the beginning of the recovery for the upstream sector, there is a lag in this translating into revenues across the supply chain. While a survey of Oil & Gas UK members indicates that around one-third of companies reported an increase, total revenues are likely to have fallen again in 2017, albeit to a lesser extent than in previous years.

2

3

Figure 7: Supply Chain Revenue by Sector

45

Potential Upside on Forecast Total Forecast Reservoirs Support and Services Wells Services Marine and Subsea Facilities

4

40

35

5

30

25

6

20

15

7

10

Turnover (£ Billion - 2017 Money)

5

8

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: EY

9

10

11

17