Energy firms facing year of ‘obstacles and opportunities’
Published 18/03/2010 | 09:14
SOME Irish energy companies will probably be forced to sell stakes this year despite a fall in the value of energy deals, PricewaterhouseCoopers (PwC) said yesterday at the launch of a report on the global energy market.
“The coming year will be one of obstacles and opportunities in Ireland and internationally,” said Paul Hennessy, an energy expert at PwC.
“The constrained availability of finance will inhibit deal activity and, until that situation is eased, there is unlikely to be a revival in deal values. But with some businesses running short of cash for expansion or facing refinancing challenges, businesses and assets may become available for corporates with strong balance sheets and cash flows.”
PricewaterhouseCoopers said mergers and acquisitions within Europe’s energy markets remained relatively buoyant last year, despite the slowdown in economic growth.
The number of deals has remained relatively stable but the value of the deals dipped sharply from $38.5bn in the first quarter to $20bn in the remaining quarters.
At the launch were Paul Hennessy (left), partner in PwC, and Cathal Marley, group financial controller, ESB.