Oil & Gas UK’s Business Sentiment Index: Companies feel gloomy for fifth quarter in a row – but slightly less so
With oil prices remaining stuck at around $50 a barrel, it's hardly surprising that UK oil and gas companies see storm clouds ahead.
Oil & Gas UK's business sentiment index posted a negative reading between July to September this year, which is the fifth consecutive quarter. However there was a silver lining, as companies said they felt a little less negative for the second quarter in a row.
Respondents returned an average score of -25 on a -50/+50 scale, a two point increase on last quarter’s -27.
Read more: Shipping and oil giant Maersk's chief executive speaks out about rocky economic outlook
"Respondents cite the positive impact of efficiency initiatives, such as improved management of inventory levels, business process reviews plus engaging with the workforce for ideas for efficiency improvements, as reasons for optimism," Oonagh Werngren, Oil & Gas UK’s operations director, said.
However, reasons for optimism were tempered by concerns over future activity levels, as well as the prospect of more job losses.
About 55 per cent of respondents reported lower activity than the second quarter of 2015, while just over 60 per cent said that headcount has already been or will be reduced.