Delivering Change – Aligning with a new normal
EDMONTON, April 10, 2017 /CNW/ - Today, Grant Thornton LLP and JWN released its annual Service & Supply Outlook Report, entitled "Delivering Change – Aligning with a new normal", reflecting on insight from over 350 representatives of the oil and gas service & supply industry. To view full: 2017 Service and Supply Outlook Report
After two years of surviving, the service and supply industry is showing moderate and optimistic growth with increasing opportunity:
- 62% of respondents forecasted revenue growth in 2017
- 61% of respondents expect a profitable increase in 2017
- Disruption, maintenance and oilfield service companies lead in terms of growth expectations
- Mergers and acquisitions (for companies doing well) and financial restructuring (for companies who are not) are the top financing mechanisms for 2017.
- Companies focused on maintenance, repair and operations are most likely to prosper soonest or have the highest growth potential.
- As for who is responsible to drive change in the oil & gas industry to create a healthier environment for sustained growth – service and supply organizations indicated that responsibility fell heavily on the producers, followed by governments and industry associations.
- There is a strong sign that companies are ready to embrace change.
"It's become clear that to be successful in the long term, service and supply companies have to learn how to adapt to this new normal of lower oil prices, tougher competition and technology disruption. Grant Thornton can help companies adapt and thrive," said Jeremy Fearnley, Northern Alberta Leader, Oil & Gas, Grant Thornton LLP.
Recommendations for the service and supply sector:
Position for a possible recovery, while not betting on one, so that companies can prosper if forecasts prove correct and survive if they do not.
Companies who can deliver the change required by their customers – technological, process oriented or lowering costs – will likely be the ones who are successful.
Focus on what you can control – how you can prepare and position your organization to increase productivity and compete with a new normal:
- Don't lose focus on cost reduction
- Have a plan to succeed
- Increase collaboration
- Leverage technology throughout the organization
- Adopt measures to retain talent and pass on knowledge
- Leverage regulatory change to diversify offerings
"While there is significant uncertainty in 2017, expectations are that commodity prices will improve, leading to more activities and improved pricing for service providers," said, Bemal Mehta, Senior Vice President Energy Intelligence, JWN.
About Grant Thornton LLP in Canada
Grant Thornton LLP is a leading Canadian accounting and advisory firm providing audit, tax and advisory services to private and public organizations. We help dynamic organizations unlock their potential for growth by providing meaningful, actionable advice through a broad range of services. Together with the Quebec firm Raymond Chabot Grant Thornton LLP, Grant Thornton in Canada has approximately 4,000 people in offices across Canada. Grant Thornton LLP is a Canadian member of Grant Thornton International Ltd, whose member and correspondent firms operate in over 100 countries worldwide. A listing of Grant Thornton offices and contact information can be found at: www.GrantThornton.ca.
JWN has been Canada's most trusted source of information, insight and intelligence on the energy industry for over 75 years. Buyers and influencers depend on the insight delivered by our products to make informed decisions that affect Canada's oilpatch and the construction industry in Alberta. The JWN analysis team can build custom reports focused on market intelligence, company benchmarking, cost studies and more www.jwnenergy.com
SOURCE Grant Thornton LLP
For further information: or to arrange an interview: Amy Mulhern, National, Media Relations Manager, Grant Thornton LLP, 416-360-4970 / 416-550-8466, [email protected]