Accountability Capital’s Advice to Energy Industry in Canada and Its Investors
November 25, 2018
Energy investors in Canada have been devastated by a combination of poorly run companies and hostile governments and special interest groups bent on destroying the industry. Many companies are down as much 50-80% so far in 2018.
At Accountability Capital, we believe this awful result can be fixed but it will take concerted effort and effective leadership. The industry and its investors need to pursue the following:
1. Industry consolidation is necessary in order to increase economies of scale and get rid of underperforming companies and managements. Smaller but profitable industry would better attract capital and talent that can run public companies
2. Prioritize shareholders. Capital has left the industry for a good reason: too many companies have failed to deliver for shareholders. Investors are right to abandon companies that have not been good stewards of their capital
3. Fight hostile governments and special interest groups threatening the viability of the oil industry in Alberta. The time to be indifferent or appease these groups should be over. Boards and managements need to show leadership stand up for their shareholders and employees.
About Accountability Capital
Accountability Capital is a leading multi-strategy active investment holding company. Our objective is to drive positive results by engaging boards and managements, and working to change the leadership of underperforming companies, when necessary.