Only the Brave Predicting UK Subsea Sector
After the chaos of 2020, when uncertainty has reigned, only the brave will be making predictions about the UK subsea sector.
That’s what Neil Gordon, the chief executive officer of Subsea UK, said in a statement posted on the group’s website on Thursday. In the statement, Gordon labeled 2020 as a year like no other and warned that it is likely to be some time before the full impact of the events of 2020 on the sector is known.
“The decade started on a positive note with the bi-annual Subsea Business Activity Review, published in January, showing that the industry was making headway after the challenges of a prolonged downturn,” Gordon said in the statement.
“But then everything changed in March as the world went into lockdown due to the pandemic. Not only did companies have to quickly adapt to remote working, they had to go into survival mode, cutting capex and opex, furloughing staff and taking advantage of VAT and PAYE deferrals to preserve cash,” he added.
“Despite inevitable and unavoidable redundancies and restructurings, the subsea industry appears to have weathered the storm with many companies now reporting a steady state and some, particularly SMEs, reporting a cautious optimism for the second half of next year,” Gordon went on to state.
Gordon highlighted that the total value of UK subsea output in the 2019 fiscal year was $10.6 billion (GBP 7.8 billion), which he noted was an increase on the 2017 figure of $10.1 billion (GBP 7.5 billion). The Subsea UK CEO also outlined that, prior to the lockdowns, the expectation of growth among both Tier 1 companies and SMEs was high, fueled by a recovering oil and gas sector and by the opportunities presented by the energy transition.
Subsea UK is the industry body for the entire British subsea industry and aims to increase business opportunities at home and abroad for the sector, according to the organization’s website. The industry contains more than 45,000 employees and around 650 companies, according to Subsea UK, which notes that, while oil and gas accounts for the major share of subsea revenues, the sector also operates in defense, oceanology and marine renewables.
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