As interim results for heat treatment specialist Bodycote (BOY) show, a low oil price hasn't just been bad news for energy companies. A sharp fall in demand from oil and gas clients in the second quarter meant energy sector revenues were down 13.6 per cent year on year in the first six months of 2015.
Unfortunately, sales to these customers tend to be more profitable work for Bodycote. As a result, underlying profits for the aerospace, defence and energy division fell by 14.3 per cent to £31.5m, although this was partially offset by favourable foreign currency movements. There were also knock-on effects for the company's agriculture clients, which reduced their orders of specialist coatings and heat treatment services as a result of weak commodity prices.