Well Services Report 2014

WELL SERVICESCONTRACTORSREPORT2014

4. Financial Data

Companieswere asked toprovidefinancial data relating to their activity on theUKCS. This informationdoes not include revenue from thedesign,manufactureand saleofwell equipment. 4.1. GrossRevenue TheUKwell servicescontractorsectorrecordedgrossrevenueof$3.2billion (£2.06billion) in2013.Thisrepresents a4.9per cent increase from2012when gross revenuewas at $3.05billion (£1.9billion); although, it is important tonote that this increase in revenue is the resultof twoadditional companiessubmittingfinancial data for thefirst time in this year’s report. When like-for-like financial information is compared, a 2.2 per cent decrease in gross revenue isobserved from2012 to2013. Figure 1 shows that the accuracy of gross revenue forecasting has significantly improved over the previous two years. The forecast gross revenue for the sector in 2013matches the actual reported figure. For this year, gross revenue is forecast tobe$3.3billion, aprojected increaseof 3.1per cent.

Figure1:UKWell ServicesContractor SectorGrossRevenue

GrossRevenue ($Billion)

GrossRevenue (£Billion)

Previous Year Forecast ($Billion)

Previous Year Forecast (£Billion)

WellsDrilled

3.5

400

3.0

350

2.5

300

2.0

250

1.5

GrossRevenue

200

1.0

150

0.5

Number ofWellsDrilledon theUKContinental Shelf

0.0

100

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014Forecast Source:Oil&GasUK Source:Oil&GasUK

The gross revenue of the sector has increased by 45.5 per cent over the period 2010 to 2013. This growth has beenachieveddespiteadecline in thenumber ofwellsdrilled for exploration, appraisal anddevelopment on the UKCS. The total numberofwellsdrilled, including side tracks, decreasedby6.3per cent from175 in2012 to164 in 2013,whilst since2010, the total number ofwellsdrilledon theUKCShasdecreasedby14.6per cent 2 .

2 Oil&GasUK’sActivity Survey2014 is available todownloadatwww.oilandgasuk.co.uk/forecasts.cfm

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