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.
The agreement, after three years of debate, raise questions on future investment demand, but Fitch Ratings doesnʼt anticipate major market disruption.
The European Commission fined Credit Agricole, HSBC and JPMorgan Chase a total of €485m for manipulating the price of the financial benchmark.
Issuers should seek more engagement with investors, explain better how they generate value, and work with investors on a Swiss code of accountable governance, suggests a white paper.
The Brazilian unit of the accounting giant admitted issuing and attempting to conceal false audit reports.