Despite sector uncertainty, TrinityBridge believe Scotland’s energy expertise will continue generating jobs, investment and long-term prosperity
ONE of Scotland’s proudest industries, oil and gas, has undergone a highly publicised transformation in recent years; the UK now imports over 42% of its energy needs, up from around 30% in 2019.
A leading UK wealth planning business, TrinityBridge, argues that major industry players still see value in the skilled heritage of the Scottish workforce, even as the country’s natural resource base comes under increasing scrutiny.
Geopolitical headwinds, the controversial Energy Profits Levy, or windfall tax – introduced in May 2022 to tax the profits of oil and gas companies arising from high oil and gas prices – ageing infrastructure, the transition to cleaner energy sources, and changes at the top of government are among the ongoing challenges facing the oil and gas sector.
However, Andrew Mackintosh-Walker, a senior investment director at TrinityBridge, said: “Oil and gas remains hugely important for Scotland which has a long history of industry in the North Sea – it has produced over 48 billion barrels of oil – but even though it has reached its peak and is now in decline, it is not going to disappear any time soon.
“Then we have to factor in future oil and gas decommissioning work and now the growing renewables sector which will require Scottish-based expertise. The energy sector is changing and evolving – we must respond to that.”
Pointing out that the oil and gas industry currently supports over 60,000 jobs in Scotland, Mr Mackintosh-Walker says: “From our perspective, there is still wealth creation – there’s considerable generational expertise in the oil and gas industry in Scotland and our job is to help our clients navigate their future and make informed investment decisions aligned to their objectives and risk tolerance.”
TrinityBridge’s clients in the sector are wide-ranging, from oil and gas company executives to entrepreneurs and SME business owners involved in the supply chain, to highly skilled offshore workers who have accrued a lot of wealth and need to help to manage that. “We advise a range of clients working throughout the industry.”
So, how does TrinityBridge help steer clients towards the right investment and wealth management advice when the industry they are operating in is frequently at the mercy of geopolitical uncertainty and, closer to home, changes to government policy? Mr Mackintosh-Walker points to the company’s in-house research and insights team who are constantly monitoring shifts in the industry.
“We have a strong in-house team,” he says. “They are constantly monitoring shifts in the industry, one that is heavily influenced by government policy and, as we are all too aware, the Ukraine war and, more recently, the Middle East crisis.”
Alejandro Velez is a senior equity analyst in the research team at TrinityBridge, he says much of his work is supporting investment managers and financial planners having highly informed conversations with their clients.
“The (in-house research) team can track in real time interdependencies such a fiscal policy – the windfall tax, for example – and the amount of oil being extracted from the North Sea,” he says. “All of these things are outwith the control of companies and individuals so it’s really important for TrinityBridge to have a very clear understanding of the market forces that affect our clients. And from my point of view, making sure our clients have access to industry and market research so that when they are making decisions with their investment manager, they are highly informed.”
Mr Mackintosh-Walker adds: “We are currently in a position where the UK’s energy consumption needs are under a microscope. The UK now imports over 42% of energy consumption needs, compared to about 30% in 2019 – so we help our clients navigate this volatility by relying upon the deep industry and country knowledge of our financial planners and investment managers, paired with the wide-ranging focus of our in-house research team.”
Of course, with change – however positive or negative that may be – comes opportunity, suggests Marcelo Rodrigues, managing director of TrinityBridge in Scotland. “The world is always volatile and throws the unexpected at us – the Covid pandemic, the financial crisis and recession in 2008/09, the war in Ukraine and now the Middle East conflict,” he points out.
“Our clients have no control over these events yet still have to make decisions that are right for them and their business despite the uncertainty in the world.
“For us, that provides an opportunity to work with clients – and prospective clients – to show what TrinityBridge can do for them.Volatility can create opportunities but it can also increase risk, and investment outcomes are never guaranteed no matter the market conditions. From a financial planning perspective, we look at their needs and objectives and translate those into their plans and tax environment – this is where we can add value,” Mr Rodrigues adds. “Our model is hands-on, holistic, and interactive, and we are finding that our clients appreciate that approach. We filter through the noise and bring clarity to help them make decisions.”
With offices in Melville Street, Edinburgh and Glasgow’s St Vincent Street, TrinityBridge serves clients the length and breadth of the country, from Shetland down to the Scottish Borders, covering the islands, Inverness and Aberdeen – a now home to GB Energy, the new, publicly-owned, clean energy company set up by the UK Government.
The leading wealth management firm has been providing bespoke investment management and strategic financial planning advice tailored to individuals, families, and business owners based on their individual circumstances and objectives, for more than 30 years.
Please be aware that no investment, or investment strategy, is without risk. The value of investments can fall as well as rise and you may get back less than you invested.
