{"id":4199,"date":"2015-12-21T20:12:17","date_gmt":"2015-12-21T20:12:17","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4199"},"modified":"2017-01-26T10:28:11","modified_gmt":"2017-01-26T10:28:11","slug":"price-volatility-presents-chance-for-new-growth-strategies-kpmg-outlook","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/price-volatility-presents-chance-for-new-growth-strategies-kpmg-outlook\/","title":{"rendered":"Price Volatility presents chance for new growth strategies \u2013 KPMG Outlook"},"content":{"rendered":"<p>A new global outlook on energy by KPMG Global Energy Institute\u00a0<em>&#8216;Global CEO Outlook \u2013 Energy perspective&#8217;<\/em>\u00a0has shown that most energy CEO\u2019s have on their focus the need to develop new growth strategies, as well as reduce cost structures and increase cash flow from operations as capital markets insist on dividends and growth.<\/p>\n<p>The report further shows that the top challenges to various executives interviewed include the needs to strengthen processes and achieve operational excellence, while responding to ongoing regulatory and market changes in order to ensure financial growth<\/p>\n<p>\u201cGiven these tumultuous times, it is not surprisingly that a majority of chief executives in energy are focusing their time on leading their companies in rethinking their strategies and business models. Asset and business portfolios are being evaluated rigorously to assess fit, including current profitability, upside potential, and having the competitive advantages and position necessary to drive current and future margins,\u201d says Benson Ndung\u2019u Partner, Head of Energy and Natural Resources KPMG East Africa.<\/p>\n<p>The outlook also showss that the need to drive competitive advantage is leading companies to consider the cost and value impact of their products and services on customers, and whether their business model propositions to customers offer a strong enough solution.<\/p>\n<p>\u201cThe use of alliances and M&amp;A is escalating to create more compelling solutions as well as capture cost reductions through synergies,\u201dNdung\u2019u adds.<\/p>\n<p>A view shared by Head of Deal Advisory KPMG East Africa Sheel Gill who foresees energy companies develop a closer relationship with lenders as equity markets remain pessimistic. The CEO\u2019s continue to seek alternative funding solutions as \u2018distressed funds\u2019 seek investment opportunities.<\/p>\n<p>\u201cLarger, more diversified companies now employ significantly more rigorous capital allocations programs, prioritizing value over volume, and are also focused on making significant organizational changes and headcount reductions,\u201d says Sheel.<\/p>\n<p>Interestingly however, acquisitions are also a key growth focus area, presumably as the more financially strong companies look for distressed \u2018bargains\u2019 as a result of low oil prices. To date however, largely due to successful restructuring, large numbers of such distressed situations have not arisen.<\/p>\n<p>In summary 2016 and near future, CEOs are seeking to balance risk with the need for new business models to drive growth, recognizing that challenging times require new approaches. And they anticipate thereafter shifting their focus from setting new strategies to ensuring their execution.<\/p>\n<p>Other key highlights of the outlook show that CEOs are more confident about their company\u2019s prospects for growth over the next 3 years than they were last year, CEOs plan to dedicate significant financial resources to their global expansion efforts, many energy organizations are not ready for cyber-attacks and that most energy companies will change their operating model over the next 3 years..<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new global outlook on energy by KPMG Global Energy Institute\u00a0&#8216;Global CEO Outlook \u2013 Energy perspective&#8217;\u00a0has shown that most energy CEO\u2019s have on their focus the need to develop new &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/price-volatility-presents-chance-for-new-growth-strategies-kpmg-outlook\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":4200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[3856,3862,3859,3858,742,1014,3861,3860,3855,3857,1883],"class_list":["post-4199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-acquisitions","tag-business-models","tag-capital","tag-cyber-attacks","tag-energy","tag-global-outlook","tag-growth-strategies","tag-investment-opportunities","tag-kpmg-global-energy-institute","tag-mergers","tag-oil-prices","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/12\/KPMG-outlook.png?fit=508%2C317&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-15J","jetpack-related-posts":[{"id":7711,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oil-gas-ceos-record-positive-outlook-of-company-growth-despite-growing-anxiety-over-threats\/","url_meta":{"origin":4199,"position":0},"title":"Oil &#038; Gas CEOs record positive outlook of company growth despite growing anxiety over threats","author":"","date":"June 20, 2019","format":false,"excerpt":"According to the 2019 Global CEO Outlook published by KPMG International, business leaders in the oil & gas sector are optimistic about the future with 91% confident about their organization\u2019s growth prospects. A high percentage (86%) also recorded confidence in the growth prospects of their industry. The survey found that\u2026","rel":"","context":"In \"Climate\"","block_context":{"text":"Climate","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/climate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1200%2C662&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1200%2C662&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1200%2C662&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1200%2C662&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/06\/oil.jpg?fit=1200%2C662&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2144,"url":"https:\/\/www.oilnewskenya.com\/index.php\/exxonmobils-outlook-for-energy-sees-global-demand-fuelled-by-increase-in-consumption-by-developing-nations\/","url_meta":{"origin":4199,"position":1},"title":"ExxonMobil\u2019s outlook for energy sees global demand fuelled by increase in consumption by developing nations","author":"Samuel Kamau Mbote","date":"December 9, 2014","format":false,"excerpt":"Significant growth in the global middle class, expansion of emerging economies and an additional 2 billion people in the world will contribute to a 35 percent increase in energy demand by 2040, according to a new report released today by ExxonMobil. According to the 2015 Outlook for Energy: A View\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":240,"url":"https:\/\/www.oilnewskenya.com\/index.php\/focus-on-liquified-natural-gas-lng-in-southern-and-eastern-africa-kpmg\/","url_meta":{"origin":4199,"position":2},"title":"Focus on Liquified Natural Gas (LNG) in Southern and Eastern Africa &#8211; KPMG","author":"Samuel Kamau Mbote","date":"December 13, 2013","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] LNG is a key component of the global energy supply mix and it is a core strategic focus area for global oil and gas companies. LNG is seen as a high growth market set to last for the next decade and beyond. East Africa and Mozambique are emerging\u2026","rel":"","context":"In &quot;New Discoveries&quot;","block_context":{"text":"New Discoveries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/new-discoveries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2013\/12\/gasfield.jpg?fit=400%2C267&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8770,"url":"https:\/\/www.oilnewskenya.com\/index.php\/global-gas-industry-set-to-resume-growth-post-pandemic-bnef\/","url_meta":{"origin":4199,"position":3},"title":"Global Gas Industry Set to Resume Growth Post-Pandemic &#8211; BNEF","author":"","date":"August 6, 2020","format":false,"excerpt":"After growing by more than 2% in 2019, global gas use is set to fall by around 4% in 2020, as the Covid-19 pandemic reduces energy consumption across the global economies. However, the resulting low gas prices, as well as clean air and climate policies, will promote further switching to\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Major-Gas-Discoveries-2019.jpg?fit=512%2C382&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8059,"url":"https:\/\/www.oilnewskenya.com\/index.php\/global-oil-demand-to-decline-in-2020-as-coronavirus-weighs-heavily-on-markets-iea\/","url_meta":{"origin":4199,"position":4},"title":"Global oil demand to decline in 2020 as coronavirus weighs heavily on markets &#8211; IEA","author":"","date":"March 11, 2020","format":false,"excerpt":"Global oil demand is expected to decline in 2020 as the impact of the new coronavirus (COVID-19) spreads around the world, constricting travel and broader economic activity, according to the\u00a0International Energy Agency\u2019s latest oil market forecast. The situation remains fluid, creating an extraordinary degree of uncertainty over what the full\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/03\/IEA-2020.jpg?fit=347%2C470&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12769,"url":"https:\/\/www.oilnewskenya.com\/index.php\/opec-launches-2022-edition-of-the-world-oil-outlook-at-adipec\/","url_meta":{"origin":4199,"position":5},"title":"OPEC Launches 2022 Edition of the World Oil Outlook at ADIPEC","author":"","date":"November 1, 2022","format":false,"excerpt":"The 2022 OPEC World Oil Outlook (WOO) was today launched at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2022 in the United Arab Emirates (UAE). First published in 2007, the WOO offers a detailed review and assessment of the medium- and long-term prospects for the global oil and\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/11\/ADIPEC.jpg?fit=1200%2C726&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/11\/ADIPEC.jpg?fit=1200%2C726&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/11\/ADIPEC.jpg?fit=1200%2C726&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/11\/ADIPEC.jpg?fit=1200%2C726&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/11\/ADIPEC.jpg?fit=1200%2C726&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4199"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4199\/revisions"}],"predecessor-version":[{"id":4201,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4199\/revisions\/4201"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/4200"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}