Geo Week News

July 9, 2013

Brazil’s oil & gas business picks up for AVEVA


3D software developer for capital engineering projects gets ‘enthusiastic response’ over E3D

AVEVA Group plc, a provider of 3D engineering, design, and information management software to the process plant, power and marine industries, said Monday business is starting to pick up in Brazil, where it won strategically important offshore and onshore contracts during the first fiscal quarter.

The Cambridge, U.K.-based company said in an interim management statement that it has seen a good start to fiscal year 2014 in both its Engineering & Design Systems and Enterprise Solutions divisions.

AVEVA uses a subscription-based license business model, meaning EPC (engineering, procurement, and construction) customers pay a fee for ongoing access to its software, providing a “strong recurring revenue base for AVEVA, which allows us to invest in the future development of our products and markets.”

Typically, most large subscription license contracts are scheduled to renew in the second half of the fiscal year, and the company said Monday it anticipates no changes to that paradigm.

In May, Aveva reported record revenue for FY2013 of $344.5 million (£220.2 million), a 12 percent increase over the previous year, and profit for the year ended March 31 of $71.1 million (£45.5 million), a 13 percent increase over last year.

Total annual revenue from end-user markets included:

  • Oil & Gas: 45-50 percent
  • Marine: 20-25 percent
  • Power: 15 percent
  • Other (Mining, Petrochemical, Chemical and Paper and Pulp): 10-20 percent

Everything3D software gets ‘enthusiastic response’

AVEVA’s Engineering & Design Systems (EDS) division provides software for the design and construction of assets in the plant, power and marine industries. AVEVA said over 20 customers are now using its recently introduced, and much heralded, Everything3D (E3D) software for major capital engineering projects. Most of those are using it for evaluation purposes with short-term trial contracts.

But customer feedback “is very encouraging,” the company said, particularly the “enthusiastic response” to the software’s integrated 2D drafting capability and efficiencies of the integrated laser model interface.


AVEVA’s LFM Software launched new laser scanning software products in April called LFM server and Operating Modes for efficient workflow to maximize the use of 3D data for the plant, power and marine industries. The company acquired LFM from Zoller+Fröhlich (Z+F) in October 2011.

‘Complex’ oil & gas projects drive demand for 3D design tools

The company said Monday that EPC customers “remain highly active” in the oil and gas market in all geographies, particularly the offshore segment.

The company’s primary growth industry is the global oil and gas industry with an increase in the number, size and complexity of projects worldwide as global energy demand is expected to grow 36 percent from 2011–2030, with an increasing proportion of the supply to be satisfied by difficult to exploit deep‑water fields.

That dynamic means a greater proportion of customers’ capital expenditure is being spent on detailed, 3D engineering and design software.

Signs first AVEVA NET deal in India

AVEVA’s Enterprise Solutions (ES) division provides software and support for ongoing information management throughout an asset’s lifecycle. Enterprise applications are in use worldwide with over 120 customers of all sizes in the capital engineering industry sectors, including oil and gas, power and marine.

The division reported “good growth” during the first quarter, including the signing of the company’s first AVEVA NET deal in India, with a major owner-operator in the power sector.

The division’s flagship AVEVA NET software creates a central repository for all project and asset information to support processes from material management, planning and scheduling, project management, handover, operations and maintenance, through to decommissioning.

Nuclear power boosts prospects in China, India

AVEVA said new, large-scale nuclear infrastructure investments in China and India has it investing in those markets for future growth.The World Nuclear Association report that over half of the 480 proposed or planned new builds will be located in China and India by 2030.

Meanwhile, AVEVA said first quarter financial results reflect continued steady demand in EMEA (Europe, Middle East and Africa) and Asia Pacific.

Close to half of AVEVA’s annual revenue for fiscal year 2013, $168.4 million (£107.6 million), a 15 percent increase in sales over the previous year, came from EMEA.

The company attributes the increase to stronger demand from larger global EPCs and plant owner operators and “strong, regional performance” in the United Kingdom, Russia, and the Middle East.

AVEVA said it ended June with over US$303 million (£204 million) in cash with no debt.

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