This week AVEVA announced that the performance of their Engineering and Design Systems has been “significantly more challenging due to the well-documented budget constraints among Owner Operator customers in the Oil & Gas industry.” Though rental renewals were comparable to this time last year, and AVEVA boasted some important new customer wins, the declining price of oil has companies cutting back on their engineering projects. This, in turn, affects the secondary industries built around the oil and gas industry.
According to AVEVA’s Interim Management Statement, “we are experiencing increased uncertainty and reduced visibility in the Oil & Gas market, which drives c.45% of our revenues. This has been exaggerated recently by the sharp decline in oil price.”
CNBC reports that crude oil prices are currently the lowest since March 2009.