Those companies that have adapted their businesses during the downturn and have maintained a relatively stable trading position are now considering how to position themselves for future growth opportunities.
With stability slowly returning to oilfield spend and activity, KPMG expects to see a modest revival in M&A activity through 2017 and 2018.
Initially, activity will be driven by technology and solutions rather than capacity requirements. Private equity, however, remains the likeliest source of capital for growth.
As the trading environment remains mixed for oilfield services specialists there will be different lead in times for recovery for the various subsectors, KPMG adds, depending on their position in the life cycle chain.
Alan Kennedy, KPMG partner and UK head of oilfield services, said: “There is a growing view that things have stopped getting worse, at least in some areas of the sector…
“The market themes that we expect to see through 2017 and 2018 are global integration of services over the life of field…non-cash mergers and private deals, as opposed to auctions.”