São Paulo – A study by consulting firm Ernst & Young shows that business in the oil and gas sector throughout the world will be booming in the next twelve months. According to the survey, which is done every six months and is titled Oil & Gas Global Capital Confidence Barometer, 56% of the sector’s executives plan to do mergers and acquisitions in their companies in the period. From these, 60% plan to carry on at least two business deals.<\/p>\n
Data released by the consulting firm indicates that the appetite of the sector’s companies for business recovered in the last six months, after the consequences of the oil price drop were assimilated. Almost all of those surveyed (99%) hope that the oil and gas market will improve or stay stable in the next twelve months. Among the companies that are seeking business, 74% are considering transaction of less than US$ 250 million.<\/p>\n
According to Ernst & Young, in the last three years growth was the main strategic agenda of the oil and gas companies. But the current survey shows that the focus is now on the optimization of the portfolio and risk management in the economic environment. The majority of the executives, 63%, declare to be dedicated to cost cutting and improvement of operational efficiency, besides acquisition planning for next year.<\/p>\n
“The sudden and steep decline of oil prices forced a lot of companies to adopt an intense focus on internal operations, cutting aggressively spending and costs. The opportunity for mergers and acquisitions were postponed due to the uncertainty regarding oil prices outlooks”, says Luiz Claudio Campos, partner of corporate transactions at EY’s Center for Energy and Natural Resources. But, according to him, with the confidence increase in the global economy, opportunities for acquisitions are growing and must be achieved. <\/p>\n
*Translated by Sérgio Kakitani<\/strong><\/p>\n