62% expect economic
recovery this year
SURVEY SNAPSHOT
While COVID-19 and the recession compounded challenges for the industry, middle market energy CFOs are cautiously optimistic about 2021. They’re focused on expanding capital access, adapting to emerging risks and investing in the shift to renewables as they look to refuel for the future.
2021 Energy CFO Outlook Survey
Refueling for the Future
Most plan to finance new renewables projects this year
Solar is expected to dominate the renawables market
71% believe profitability will increase in 2021
50% of O&G CFOs predict oil will average $60+/ bbl over the next 5 years
Trade and tariffs are CFOs’ top policy concern
DOWNLOAD FULL REPORT NOW
Reclaiming Capital Access
In 2021, capital access will be vital in determining which companies can execute on their strategic plans. Fortunately, energy CFOs are looking to a variety of sources to secure the cashflow needed to forge ahead.
CAPITAL PROJECTIONS FOR 2021
44%
of oil and gas CFOs expect capital access to increase
of power CFOs anticipate an increase of capital access
64%
Top Sources of Capital for 2021
Investment by a strategic partner
39%
Private sector equity
38%
Public equity
33%
Private debt
26%
BDO'S TAKE
Other risks include trade and tariff policy, environmental mandates and the impact of a new regulatory regime. By increasing spending in risk and compliance, energy CFOs will be able to face these challenges. Effective contingency planning, agile supply chains and operational efficiency will also help CFOs adapt more quickly to disruption and seize new opportunities.
The pandemic compounded preexisting headwinds and introduced new challenges for the industry, and the road ahead is uncertain. Energy CFOs are preparing to meet these hurdles and navigate future disruption head on.
An Evolving Threat Landscape
26% of power CFOs rank a prolonged economic downturn as the top threat to their business
Economy
16% of oil and gas CFOs cite regulatory uncertainty as the top threat to their business
regulation
61% of energy CFOs are increasing their spending in risk management
& compliance
response
Last year, energy CFOs prioritized business continuity and protecting cashflow. But as the industry recovers, long-term plans for the energy transition are coming back into focus.
expect renewables to comprise at least 5% of their business in 2021
60%
Outlook for Energy Transition
plan to finance new renewables projects this year
89%
say solar will dominate the sector by 2023
27%
cite regulatory uncertainty as the #1 hurdle to adopting renewables
26%
PROJECTIONS FOR RENEWABLES
Methodology
Survey Respondents
DOWNLOAD THE full REPORT
The 2021 BDO Energy CFO Outlook Survey polled 100 middle market energy CFOs with revenues ranging from $250 million to $3 billion. The survey was conducted by Rabin Research Company, an independent marketing research firm, in September 2020 using Op4G’s panel of executives.
Methodology
ANNUAL REVENUE
Survey Respondents
SUBSECTOR
LEARN MORE
BDO'S TAKE
To keep investor interests high, energy companies must showcase their profitability and potential. To do so, they will need to continue to cut costs, boost operational efficiencies and demonstrate an ability to ensure continuity and manage any future fluctuations in demand.
BDO'S TAKE
Reimagining traditional operations to support renewable energy is a business imperative. Conducting contingency planning, upskilling a workforce for industry shifts and adopting automated processes will enable companies to execute their long-term goals for the energy transition.
Thank you! A copy of the report has been sent to your inbox.
BDO'S TAKE
To keep investor interests high, energy companies must showcase their profitability and potential. To do so, they will need to continue to cut costs, boost operational efficiencies and demonstrate an ability to ensure continuity and manage any future fluctuations in demand.
BDO'S TAKE
Other risks include trade and tariff policy, environmental mandates and the impact of a new regulatory regime. By increasing spending in risk and compliance, energy CFOs will be able to face these challenges. Effective contingency planning, agile supply chains and operational efficiency will also help CFOs adapt more quickly to disruption and seize new opportunities.
2021 Energy CFO Outlook Survey
GET THE FULL REPORT SENT TO YOUR INBOX
GET THE FULL REPORT SENT TO YOUR INBOX
Want more than just the key takeaways? Read the full report.
Email Full Report for Later
Want more than just the key takeaways? Read the full report.
DOWNLOAD FULL REPORT NOW
Email Full Report for Later