Subsea UK is encouraging British firms to set their sights on international expansion to sustain long term growth.
The industry body is urging companies to look beyond the North Sea and establish international links to generate new business and support the government’s strategy to increase British exports to £1 trillion by 2020.
Subsea UK in partnership with UK Export Finance (UKEF), will be running an event on 24 August in Averdeeb to highlight how firms can overcome the financial challenges involved in selling overseas through government-backed guarantees and insurance.
The event will explore the most promising export opportunities, as well as provide practical help and advice on market entry in a bid to match UK expertise with demand from key oil and gas provinces.
UKEF is the UK Government’s export credit agency. It exists to ensure that no viable export should fail due to the lack of finance or insurance support from the private market. It provides financial backing and insurance to help exporters win, fulfill and ensure they get paid for export contracts. In 2015-16, UKEF provided nearly £600 million in support for energy sector exporters’ overseas sales.
Carol Harvey, export finance adviser for UKEF will highlight the ways in which they can help subsea companies obtain finance and insurance to support their business while they take advantage of international opportunities.
Subsea UK will also be running a similar event on 22 September in London, where Joe Shephard from UK Export Finance will speak about how the government can help exporters in the subsea sector win, deliver and get paid for their export contracts. In addition, Ivan Coyard, chief financial officer of JDR Cable Systems will deliver a presentation on how UKEF has helped increase the company’s export capabilities.
Neil Gordon, CEO of Subsea UK said: “With the maturity of the North Sea, coupled with the challenges the industry is currently facing as a result of the continued deterioration in oil price, means that firms must look further afield to grow the UK subsea industry’s international capabilities and reputation.
“With new markets come new opportunities for growth, diversification, and innovation. Companies must extend their global reach to spread risk and win new business. Exporting can help businesses grow – and grow fast. The statistics show that in the first two years of exporting alone, a business can grow by up to one-third, bringing more jobs and boosting profits.
“The help and support that UKEF can provide to companies across the country is a great example of how business and government can work together to increase growth and UK competitiveness.”
UKEF has provided £15 billion in support for exports over the past five years. As part of HM Government and the world’s first export credit agency, it complements, rather than competes with, the private sector, and does this at no net cost to the taxpayer. UKEF has a long history of supporting the oil and gas industry and is prepared to support all export sectors, from capital goods to services and IP.
Louis Taylor, CEO of UKEF, said “The UK is a global leader in the oil and gas industry, in particular for offshore operations, and the demand is out there with huge rewards to be gained from expanding overseas. UKEF is here to make exports happen, and has done so for many oil and gas companies – GE, Fathom Systems, JDR Cables, Forum Energy, MAATS Tech, and many others have all benefited from our support. Our comprehensive package of support can help UK exporters win, fulfill and get paid for contracts in a competitive global marketplace.
“We can help transform companies’ export performance: each of the companies we helped to access trade finance or insurance over the past year has their own success story to tell. Working as part of the cross-Government ‘Exporting is GREAT’ campaign, we want to do everything we can to break down the barriers to international trade, help companies realize new export opportunities and help companies sustain long term growth. We look forward to working with more Subsea UK companies in the future.”
UKEF has a regional network of 24 export finance advisers supporting export businesses.
The event will take place on Wednesday 24 August at Village Hotel, Prime Four, Kingswells, Aberdeen.
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