As a mature industry, energy companies must achieve enhanced profitability, in large part, through best in class performance and disciplined cost control as market demand for their products is strong, but not without fluctuation. Many commodity price levels are high today, but management teams know that commodity price levels are cyclical. In the face of fluctuating demand and cyclical pricing, operating an efficient and streamlined business, as well as squeezing costs, is critical.
Industry consolidation has created large companies, many of which are still discovering synergies to be achieved from merger and acquisition activity. Aging infrastructure needs to be upgraded or replaced. Compliance costs for environmental remediation and enhanced safety standards have trimmed already thin margins. Achieving internal efficiencies ahead of the competition is a key challenge. Investing in medium and longer term process improvements and cost control measures while product demand is strong and prices are high makes good business sense.
Helping clients attain increased performance by improving the efficiency and effectiveness of key business processes can result in a key competitive advantage. Our performance improvement specialists focus on the areas of finance, information technology and governance, risk and compliance business processes. Using key enablers such as change and programme management, data services and technology, we offer a more comprehensive solution set to our clients. We use our deep industry expertise and understanding to ensure tailored solutions for our clients.
We work closely with clients to improve the effectiveness and efficiency of their companies’ finance operations. Our accounting, organisational and technology skills can help enhance the core transaction processing and reporting competencies of the finance function, while strengthening its ability to support management decision-making and corporate strategy.
We help clients to identify current risks, build forward looking governance and compliance programmes, control their compliance infrastructures and measure and monitor ongoing governance and compliance practices.
PwC possesses significant expertise in the areas of cost reduction, sourcing and shared services analysis, IT effectiveness, as well as crisis management to help companies achieve best in class performance. Some of our cost reduction strategies include:
IT Effectiveness strategies involve assessing the current information technology systems and looking for ways to improve their performance, processes and controls, resulting in better reporting and greater efficiencies. We apply strategies of:
Weather, politics, transactions, and many other factors can impact a business’ operations and force a company into a crisis management mode. These events are not only disruptive, but can be extremely costly. Our crisis management specialists are trained to rapidly identify problem areas, gain cooperation and consensus, resolve issues quickly and efficiently, and implement solutions with sensitivity and precision. Our services include: