Fifty percent of energy services companies polled by the Energy Chamber indicated that the value of their business was down in the second quarter of 2017. Seventy seven percent of the respondents indicated that this was due to decrease in demand for services. Fifty six percent of respondents also indicated that the volume of their business was down in the second quarter of 2017. Ninety percent of respondents indicated that this was also due to decreased demand or services from them.
Overall a vibrant energy services subsector is integral to the overall health of the energy sector. With most contractors indicating that the value and volume of their business is down this certainly paints an alarming picture of this sub sector.
The Energy Chamber’s Energy Services Sectors Survey (ESSS) is a quarterly survey of energy services contractor which allows for such an assessment. The ESSS attempts to map the performance and optimism of our energy services sector members, providing data on their business confidence and on some of the phenomena which impact on their operations and business prospects. The survey draws on information from survey participants such as the level of confidence of service contractors and the value and volume of business in the current quarter as well as what they project for the next quarter.
Thirty three percent of ESSS respondents indicated that their level of optimism was more than the first quarter of 2017. Twenty eight percent of respondents indicated that they were less optimistic while thirty nine percent indicated that there was no change in their level of optimism compared to the previous quarter. When asked why their levels of optimism were less than the last quarter eighty percent indicated that it was due to worsening overall economic environment.
Regarding employment, in the past 3 months, most respondents indicated total number of persons employed decreased.
According to respondents, fifty five percent of CAPEX authorisations over the next quarter will be aimed at engaging new clients. In addition, forty four respondents indicated that they would use CAPEX to provide new services and thirty eight said that they will expand capacity.
The energy services sector remains a viable sector in Trinidad and Tobago. However, due to the uncertainty in global industry, demand for services in the local market has fallen.