Business Outlook 2017
BUSINESS OUTLOOK 2017
Figure 6 tracks share price performance of a sample of listed supply chain companies that have a strong UK presence across a number of sub-sectors, providing an indication of the sector’s health. On average, the downward trajectory in share prices reflects the revenue reductions during 2014 and 2015. In 2016 however, a sustained period of gentle share price recovery across most of the sub-sectors can be seen as another sign that the market believes the bottom of this cycle may have been reached. The outlier is the broad support and services sector, a major component of which is aviation companies. The wells services sector includes a number of companies with a strong North American position who are big players in the unconventional market. Therefore, while the share price recovery is encouraging for this sector as a whole, it should be considered as a global indicator, rather than one specific to the UK.
Figure 6: Share Price Performance of Supply Chain Companies
160
Support & Services
Facilities
Marine & Subsea
Wells Services
140
Reservoirs
Sector Average
120
100
80
Index
60
40
20
0
Jan 2014
Jan 2015
Jan 2016
Jan 2017
Source: Yahoo Finance
16
Made with FlippingBook - Online catalogs