The Kimberlite Report: Part 3 – Proserv’s footprint expands as it outstrips competition across key performance benchmarks
Posted: August 19, 2020
In the third part of our analysis of the industry trends and future strategy emerging from the Subsea Equipment & Services Supplier Performance Report, recently published by Kimberlite Oilfield Research, we put Proserv itself under the spotlight.
When the landscape of the subsea oil and gas sector points to increased brownfield activity, reduced outlays and a critical need for more reliable equipment to aid maximising returns, it is no wonder Proserv’s numbers continue to rise strongly.
In the 2020 Kimberlite Subsea Equipment & Services Supplier Performance Report (compiled following in-depth interviews with 50 subsea oil and gas operators), Proserv’s growing footprint is clearly evident. When operators in the Gulf of Mexico (GoM) were asked which subsea controls supplier they had used during the past two years, 43 per cent name Proserv, putting the firm second in terms of market penetration across the region and benefiting from a spike of more than 30 per cent since the 2018 report.
Globally, Proserv’s figures are even stronger with the firm enjoying a 50 per cent lift in market penetration over the past two years, by far the biggest increase among all subsea controls suppliers. The company now serves 15 per cent of the worldwide market, closing in on its rivals. Part of the reason for the firm’s increasing reputation with operators is again exemplified by research revealed from the GoM.
Proserv tops all performance ratings
Kimberlite’s analysts have evaluated subsea control system supplier performance on a number of key selection and performance factors. These include elements such as equipment quality and reliability, and pricing competitiveness.
In the GoM, Proserv comfortably outperforms its competitors across every single benchmark measured, with strong showings in all categories, and improved ratings in equipment reliability, technical support, responsiveness to needs and competent field personnel, when compared to the 2018 report.
Iain Smith, Senior Vice President at Proserv, is very encouraged by the findings but not at all surprised:
“It is obviously very pleasing that our customers in the GoM, and the wider industry, are recognising the potential of our technology, with its market-leading reliability, and our levels of expertise and customer support, especially at such an uncertain time globally.
“But around the world, we are regularly deploying our solutions to transform the performance of unreliable, obsolete subsea control modules, leveraging the coexistence capabilities of our Artemis 2G subsea electronics module (SEM), which can be configured to work with any legacy original equipment manufacturer’s system.
“So, operators we work with appreciate that we can make a considerable difference to their productivity. Our SEM technology is affordable, enhances functionality via faster data speeds, and avoids expensive system upgrades, so it can enable moderate extensions or tiebacks to become economically viable. This hands-on, direct experience of our solutions explains the positive feedback we are enjoying.”
Leader in customer loyalty
Proserv’s strong global reputation is borne out by its impressive numbers concerning its Net Promoter Score (NPS). This is a widely used industry benchmark and is based on the question, “How likely would you be to recommend this company to a friend or colleague” using a scale of 0 to 10, with 10 being highly likely.
Net Promoters exhibit strong customer loyalty and are more willing to try new offerings from the supplier, while Net Detractors are much less willing to repurchase from a supplier. Kimberlite’s research states, “…the Net Promoter Score is a good benchmark to track and monitor over time and correlate to business performance.”
In every region or segment where it has penetration, Proserv has a major NPS advantage over all other suppliers. Globally, the firm has an NPS average score of 64 per cent, 24 per cent ahead of its nearest rival, and with some subsea suppliers actually receiving minus ratings overall. Impressively, Proserv is the only subsea controls supplier without a single Net Detractor rating.
Critical improvements to production and reliability can clearly make a distinct difference to many of the subsea segment’s midsize players, often looking to secure moderate gains from brownfield assets, and the Kimberlite Report’s research on Proserv’s expanding profile suggests this category is enthusiastic about the firm’s product offerings.
Proserv popular with independents
Proserv is increasingly seen as the go-to subsea controls provider for independents, with its market share now estimated at 21 per cent, just two points behind the segment leader. In Kimberlite’s Value Map representation (a visual picture of the relative competitive positioning of each supplier) specifically for the independent operator market, Proserv is firmly ahead of the pack when measuring perceived pricing alongside supplier performance. Kimberlite’s researchers comment, “Proserv is competitively advantaged among the independent operators and viewed as delivering the best overall value.”
The report also observes that while independents have been keen to utilise Proserv’s solutions and technology, some of the majors have yet to engage fully with the firm’s products, often accepting poor standards elsewhere as a consequence, with Kimberlite observing:
“Proserv’s customer base continues to be primarily independent operators while major oil companies continue to use the larger integrated subsea service suppliers although in many cases their performance is below industry average and the major oil companies often cite displeasure with the level of service and support they are receiving.”
Iain Smith agrees strongly with the report’s findings, remarking, “It is clear from the data compiled that Proserv continues to make great forward progress, cementing further our reputation for high-quality controls technology and increasing market penetration in our areas of strength.
“But we want to maintain this growth and push proactively into new segments where we see huge potential. We know independents see the value of affordable, reliable solutions that improve productivity on one hand and save outgoings on the other. But we now challenge the subsea sector’s major operators to see the benefits of that strategy. Affordability, improved production and enhanced efficiencies represent smart outcomes no matter the scale or footprint of the operator.
“It might be convenient and quick to choose subsea controls from a one-stop shop supplier, but by opting for what might seem like an easy option, these operators miss out on procuring high-quality products, and benefitting from specialist know-how. Eventually, that will lead to obsolete, unsupported equipment and reliability issues located at the bottom of the ocean.
“Kimberlite’s research clearly points to tangible life of field savings being achieved by turning to a supplier that prioritises obsolescence proofed, reliable and flexible subsea control systems.”
Part 1 of the Kimberlite Report: reduced spending and caution point to further brownfield opportunities
Part 2 of the Kimberlite Report: greater reliability and fewer failures from subsea control systems are vital
Part 4 of the Kimberlite Report: the key takeaways