Survey: Asia-Pacific O&G Companies More Likely To Divest Than Global Counterparts

KUALA LUMPUR, May 11 (Bernama) -- A survey by Ernst and Young Advisory Services on Asia-Pacific oil and gas companies, revealed that 42 per cent are likely to divest, up from 28 per cent six months ago. The result is far stronger than the total global result where 31 per cent of all companies are expecting to divest assets next year, up from 20 per cent a year ago. The Sixth Ernst and Young Global Capital Confidence Barometer survey found that despite higher oil prices, improving access to capital, increasing economic optimism and a generally more favorable deal environment, oil and gas executives are still cautious about engaging in mergers and acquisitions (M&A). Ernst and Young in a statement said 48 per cent of respondents, compared to 39 per cent six months ago, felt the Malaysian economy is improving. "Globally, there has been a shift in sentiment, with mature economies now seeing improvements while the emerging markets are relatively less optimistic," it added. Sanjeev Gupta, Asia-Pacific Transactions Advisory Services Leader for Oil and Gas said, 78 per cent of respondents viewed the global economy as stable or improving. "They also show a marked upswing in confidence at the global level for corporate earnings, economic growth, employment growth and credit availability from six month ago. "They still don't view these metrics as positively as all global executives, and are still highly concerned with the regulatory environment," he added. -- BERNAMA