Well Services Report 2014

WELL SERVICESCONTRACTORSREPORT2014

2. Summaryof KeyFindings

This report highlights the followingkeyfindingsobservedwithin theUKwell services contractor sector in2013:

•Gross revenue for the sectorwas $3.2billion in2013.

•The sector earningsbefore interest, tax, depreciationandamortisation (EBITDA)were$482million in2013, with theEBITDAmargindecreasing to15per cent from18.5per cent in2012. This reflects the increasing costs of operationson theUKContinental Shelf.

•A like-for-like comparisonwith2012 reveals that capital investment increasedby9.7per cent in2013, representing thehighest level of capital investment from the sector since2008.

•Over 15,000peopleareemployed in thewell services contractor sector.

•Seventy-fiveper cent ofwell services contractor firms reportedan increase indemand for theirwork in2013.

•Therearehigh levelsof optimism for the futureof theUKwell services contractor sector, although it is acknowledged that the industryas awhole is facinganumber of significant challenges, suchas increased operating costs anddifficulties in recruitingand retaining skilledpersonnel.

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