ENGINEERING and construction contractor Acergy said yesterday that suppliers were reducing prices, but it added that market visibility in 2009 would be poor.
The comment came as the company reported that income from continuing operations in the quarter to the end of February fell to £26million compared with £32.2million in the same quarter the year before.
Revenue from continuing operations dropped to £335.4million, against £406.4million previously, however, in northern Europe and Canada, revenue in the quarter jumped to £92million from £85.3million.
Chief executive Jean Cahuzac said: “In the first quarter, we have delivered another solid performance in challenging conditions, translating operational execution into sound margins and profits.
“Despite caution about the short-term oil price, international and national oil companies have sought to maintain activity levels across major developments and to postpone, rather than cancel, less strategic and more marginal activities.
“With the industry aggressively focused on cost, we are working with clients to conserve their cash wherever key variables – such as project scope, risk profile and procurement levels – can be revised. Encouragingly, suppliers have started to grasp this imperative and are reducing prices of plant, equipment and subcontractor services.
“Market visibility in 2009 will be poor and we are managing our internal costs appropriately.”