Share price falls pressure asset valuations
The underperformance of oil and gas stocks will lead auditors to closely examine goodwill and impairment testing calculations
Sustained drops in oil and gas companies’ share prices during 2019 and beyond means that the valuation of assets on firms’ balance sheets could be more closely scrutinised by auditors and regulators, warns advisory firm Opportune. In the final three quarters of 2019, the S&P oil & gas equipment & services select industry index decreased by c.27pc and the S&P oil & gas exploration & production select industry index fell by c.23pc, although both experienced a partial rebound towards the end of the year. Private oil and gas firms are also impacted by these reductions, as the value placed by the market on similar assets owned by their listed peers are used as a guide for
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
