Business conditions in Trinidad and Tobago’s energy services sector remained mixed during the second quarter of 2026, according to the latest Energy Services Sector Survey (ESSS) conducted by the Energy Chamber of Trinidad and Tobago.
The survey found that 63 per cent of respondents reported that the value of their business was below normal during Q2 2026, compared with 60 per cent in the first quarter. Thirty-two percent said business value was normal, while 5 per cent reported above-normal business values.
Business volumes showed a larger change during the quarter. Sixty-six percent of respondents reported below-normal business volumes, up from 56 per cent in Q1 2026. Twenty-seven percent said business volumes were normal, and 7 per cent reported above-normal volumes.
Among companies reporting below-normal business values, 81 per cent said the decline was due to a decrease in demand for services, while 77 per cent cited fewer business opportunities. Twenty-seven percent reported losing contracts or projects, 23 per cent pointed to lower average selling prices, and 8 per cent said they were forced to offer fewer services.
Companies reporting below-normal business volumes identified similar factors. Seventy-eight percent attributed the decline to a decrease in demand for services, 74 per cent cited fewer business opportunities, 26 per cent reported losing contracts or projects, and a small number said they had been forced to offer fewer services.
A smaller group of respondents reported above-normal business performance during the quarter, citing increased demand for services and additional contracts or projects as the main drivers.
Business confidence was mixed. Thirty-seven percent of respondents said they were less optimistic about business conditions than they had been three months earlier, while 34 per cent were more optimistic, and 29 per cent reported no change.
Among companies with a less optimistic outlook, all respondents identified the broader economic environment as a contributing factor. Sixty percent also cited the lack of downstream projects, 40% pointed to lower upstream activity, and 27 per cent said international market opportunities had declined.
Companies with a more positive outlook largely linked their expectations to increased upstream activity. Nearly 79 per cent identified higher upstream activity as the main reason for their improved outlook, while others pointed to an improving economic environment and opportunities in international markets.
Looking ahead to the third quarter of 2026, respondents continue to expect business conditions to remain steady overall, with expectations showing modest improvement compared with the previous survey.
Forty-six percent expect the value of their business to remain below normal in the next quarter, down from 54 per cent in the Q1 survey. Thirty-nine percent expect business values to be normal, and 15 per cent anticipate above-normal performance.
Expectations for business volumes show a similar pattern. Forty-six percent expect below-normal volumes during Q3, compared with 50 per cent in the previous survey. Forty-four percent expect normal activity, and 10 per cent anticipate above-normal business volumes.
Among respondents expecting below-normal business conditions, the most common reasons were a decrease in demand for services and fewer business opportunities. Those expecting stronger performance pointed to additional contracts or projects, increased demand for services, and opportunities in new markets.
Employment remained relatively stable during the quarter. Nearly 87 per cent of respondents said they did not lay off staff, while 13 per cent reported workforce reductions.
Most companies also reported stable employment over the past three months. Seventy-four percent said staffing levels were unchanged, 18 per cent reported a decline, and 8 per cent recorded an increase.
Training expenditure was more varied, with 36 per cent reporting lower spending and 14 per cent increasing investment in employee training.
Looking ahead, 63 per cent of respondents expect employment to remain unchanged over the next three months, while 21 per cent anticipate an increase, and 16 per cent expect a reduction. Companies also expect training expenditure to strengthen, with 23 per cent planning to increase spending.
Despite current business conditions, companies continue to report plans for investment and growth. Nearly 69 per cent expect to expand their business more, over the next 12 months than they did during the previous year.
The main reasons for planned capital expenditure include reaching new customers, improving efficiency through new technology, expanding capacity, and introducing new services.
When asked what would most limit future business growth, respondents most frequently identified the level of demand for their products and services. Other commonly cited constraints included international competition, politics, local competition, the ability to raise funds, broader socio-economic conditions, and crime.
Overall, the Q2 survey suggests that while many companies continue to operate in a challenging business environment, expectations for the coming quarter have improved modestly, and most firms continue to maintain their workforce and pursue investment plans for future growth.
