26th Jan 2015 07:47
LONDON (Alliance News) - AVEVA Group PLC Monday warned of increasing uncertainty and reduced visibility in the oil and gas market, which has been compounded by the recent sharp decline in oil price, although it expects its fourth-quarter rental renewals to be in line with its "historical experience".
In a trading update, the engineering data and design IT system provider said it derives around 45% of its revenues from the oil and gas market. It said that, outside of oil and gas, trends have not changed, with steady growth in the power market and with marine markets subdued.
The company said that in the period from the beginning of October last year to last Friday its engineering and design systems business performed broadly in line with its expectations. In its enterprise solutions business, although it saw some "important" new customer wins, the market has been "significantly more challenging" due to budget constraints from owner-operator customers in the oil and gas industry.
AVEVA said its cost efficiency programme is on track. At the time of its interim results in November, the company had said it expects its operating expenses to be around GBP10 million lower than originally planned in the second half.
The company acquired 8over8 Ltd earlier this month and said that, whilst it still was in the early stages, the integration of this acquisition is progressing well.
AVEVA said it had net cash of GBP120 million at the end of 2014.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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