Subsea firms buoyant after the recession

BRITAIN's subsea companies are emerging from the recession leaner and fitter and ready to take advantage of any upturn in the global oil and gas industry, according to a new report by Subsea UK, the sector's main trade body.

The study, supported by Scottish Enterprise, shows that the high levels of uncertainty that plagued the sector in 2009 have abated. And 2010 is now likely to be more positive than many companies feared last year.

Alistair Birnie, chief executive of Subsea UK, said: "The findings give cause for some relief.

"We are now in a much more stable environment. But it is clear that the order backlog, which has essentially acted as a buffer from the worst of the downturn, is drying up and to achieve growth we will have to rely on market forces."

He added: "Our companies had the greater need to work smarter and more efficiently and, as a result, are now better-placed to weather the next storm.

"Of significant interest is that some companies have reported a reduction in turnover but an increase in profit. These companies have obviously used the downturn to take a strategic review of the business."