Low commodity prices in 2015 prompted energy companies to drastically revise their operational, capital expenditure (capex), finance and risk management plans. Industry-wide, capital expenditures fell an estimated 45% in 2015 versus 2014.
For 2016, the outlook suggests continuing frugality as the prevailing industry view is for oil and gas prices to remain “lower for longer,” reports Citi.
In two recently-issued articles, the group discuss how chief financial officers (CFOs) and treasurers are adjusting to these changes and working with their banks to beef up their global strategy. The authors are Jim Reilly, vice chairman and global head of energy corporate banking at Citi and Peter Langshaw, global sector sales head for energy, power, chemicals, metals and mining.
Both papers, under the title “Adapting to ‘Lower for Longer: How Companies are Adopting and Embedding Resilience’, can be accessed here.
A study of the leadership pipeline at the UK’s FTSE 100 corporates shows modest progress, but many top companies still have no ethnic minority presence.
The world’s second-biggest economy will grow faster than previously predicted over the next four years, but the rate is unsustainable unless China addresses the problem says the International Monetary Fund.
The insurance industry will also benefit as private businesses increasingly bypass the public internet and communicate with one another direct, predicts Equinix.
The information and communications technology sector is suffering a triple whammy from slower growth, thin profit margins and fierce competition, claims Atradius.