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
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy