Supply chain and operations
The ENR sector is facing significant supply chain and operations disruptions globally. KPMG can assist companies in this sector to reduce revenue risk from potential supply chain disruptions, optimize working capital and operating costs, production acceleration/deceleration planning, cost base reduction initiatives, planning for different operating level scenarios and with any operational scale enhancement strategies.
Cash and liquidity management
Companies in the ENR sector are conserving their cash due to lower oil prices and demand across the globe. KPMG can assist stakeholders in this sector to evaluate their current cash situation and help them to optimize their liquidity accordingly. One of the potential cash sources is input VAT refund.
Workforce management and staff augmentation
With plant shutdowns and volatile production levels, KPMG can support with employee change management issues and workforce optimization. It can also support withr loaning staff on mission critical projects, particularly in the fields of Finance, IT and Operations.
Business continuity management
Companies in the sector would need sustainable business continuity plans in place. KPMG can provide support in planning and managing this so that the impact on business due unforeseen circumstances is minimized, including contingency planning, devising crisis management strategies, planning for plant shutdowns and reduced operating capacity scenarios, etc.
M&A advisory and restructuring
- ENR companies may be looking to divest various Oil & Gas assets and businesses. KPMG can offer support to companies with its distressed advisory services, help minimize impairment losses from the sale of assets, offer debt restructuring support (extension of debt repayments) and provide restructuring and M&A separation support services.
- Also, ENR companies may be looking to acquire Oil & Gas assets and businesses given current valuations. KPMG can assist with buy-side M&A assistance on financial and tax matters.
The companies in the sector are focused on alternate sources of energy. KPMG’s Environment Advisory can assist these companies to develop a sustainability and climate change strategy, which includes low carbon strategy and business models, climate adaptation strategies and Climate related risk assessment
Corporate Treasury Advisory services can help firms to reduce debt, manage energy and commodity risks, and with hedging and addressing P&L volatility.
The Covid-19 pandemic has led to regular changes being announced related to tax requirements, deferrals and incentives across geographies. KPMG can assist ENR companies in monitoring and complying with these changes, evaluating tax obligations and potential tax reliefs, tax modelling and other updates related to direct and indirect tax and transfer pricing.