Managing a portfolio through the market fog – Do Market Fundamentals matter?
The current economic environment has left leaders in the gas business struggling to chart a course through uncertain waters. The “rules” which we have previously used to set direction no longer seem relevant, and views of the next month are as difficult to predict as the next year or decade.
We believe that identifying and constructing a plausible range of scenarios with which to plan value generation based on market fundamentals is a real challenge for any business.
What are Market Fundamentals?
For the gas industry looking at market fundamentals primarily means looking at:
- Gas reserves in the ground
- Exploration and production activity and associated assets
- Transportation infrastructure (pipelines and
- Transmission, distribution and storage assets
- Consumption and consuming assets (power stations/large industry
- Technological changes being adopted and activity
- New developments in other fuel supply industries
Why should you return to Market Fundamentals?
Revalidating past investment decisions based on market fundamentals will enable you to rebase your portfolios for the future and position them to succeed. Companies ignore a rigorous review of market fundamentals at their peril.
Fundamental analysis will not make change happen but clear sighted objectives will help support difficult decision making on re-prioritising.
Managing your portfolio for optimum success
We can help you make more informed decisions for new projects and evaluate the strength, value and risks within your existing portfolio. Working with us will enable you to:
- See beyond market sentiment to provide an objective view of value
- Uncover the underlying reality which will set value
- Build solid business cases and manage risk in these uncertain times
To discuss your particular needs in more detail, please contact Chris Levell on +44 (0)20 7332 9954, or complete the contact form.
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