1. Energy Service Sector Survey (ESSS) report for the first quarter of 2008

2. ESSS Q1 2008
The ESSS is conducted on a quarterly basis by the STCIC executive office.
The ESSS for Q was conducted in April / May 2008.
Twenty One (16) companies returned questionnaires.

3. Optimism Levels
25% of respondents said that they were more optimistic in Q than they were in Q This compares to 20% who said that they were more optimistic in Q than they were in Q
The majority of respondents (56%) had no change in their level of optimism over the previous quarter.
The next slide shows optimism over the last 7 quarters.

4. Optimism Falling

7. Charges Cost & Profitability in Q1 2008
Selling prices: 50% (38% )of respondents said that average selling prices were up in Q4 2007; 38% (57%) said it had remained the same and 13% said that selling prices declined.
Total Cost per employee: 50% (67% )of respondents said that the total cost per employee had increased; 25% (33%) said that it was the same.
Overall profitability: 13% (29%) of respondents said that overall profitability had increased; 50% (43%) said it stayed the same; and 38% (29%) reported a decrease.
*Note the figures in brackets were reported in the previous quarter: Q4 2007

9. Employment and Training in Q3 2007
Numbers employed: 50% (40% )of respondents reported numbers employed as increasing in Q1 2008; 44% (50%)reported no change; and 6% (10%)reported a decrease in numbers employed.
Full Time employment: 31 % (29%)reported increases in full time employment; 69% (62%)reported no change; and 0 % (10%)reported a decline in full time employment.
Part Time employment: 53% (45%)of respondents reported an increase in part time employment; 47% (40%)reported no change and 0 % (15%)reported a decrease.
Training expenditure: 64 % (57%) of respondents reported an increase in training expenditure in Q while 29% ( 29%) reported no change; 7 % (10%) respondent reported a decline.
Note: The figures for Q are in brackets

11. Trend in employment in the energy service sector as reported in various ESSS reports
Table 1: Employment in the Energy Service Sector
Quarter
% saying employment is up
% saying no change in employment
% saying employment is down
Q1 2007 33 48 19
Q2 2007 37 26
Q3 2007 53 42 5
Q4 2007 40 50 10
Q1 2008 44 6

12. Capital Expenditure in the next 12 months compared to past 12 months
Capital Expenditure (Capex) is categorized into 3 areas:
Land and Building
Information Technology
Plant/Equipment/Vehicle
Results for Q are shown in table below. Q results are in parentheses.
Area
More Capex authorizations
No Change in Capex authorizations
Less Capex
authorizations
Land
53%, (67%)
47%, (24%)
0%, (20%)
Information Technology
81%, (76%)
19%, (24%)
0%, (0%)
Plant/Equipment/
Vehicle
80%,( 76%)
20%, (19%)
5%, (5%)

17. Conclusion
The results of the Energy Service Sector Survey for Q indicates that the energy services sector’s optimism is not as buoyant as it was in mid – Most companies responded that that there was no change to their level of optimism. The sector continues to be constrained by increasing cost, unavailability of labour (technical and professional) and by competition from foreign energy services companies. In the face of these challenges the energy services sector continues to show growth through increases in employment and Capex.