Wed, Nov 15, 2017

Duff & Phelps Quoted in the WSJ: Energy Sector’s Goodwill Impairments Slump as Oil Prices Rebound

The amount and number of goodwill impairments recorded by the energy sector declined dramatically in 2016 as crude oil prices recovered from 12-year lows, according to the Duff & Phelps 2017 U.S. Goodwill Impairment Study, prepared in partnership with the Financial Executives Research Foundation. The study analyzed general and industry goodwill impairment (GWI) trends through December 2016 for over 8,400 U.S. publicly-traded companies. 

Despite being the hardest hit industry for three consecutive years, energy had the most notable reduction in GWI in 2016. “We hit the 12-year low in oil prices at the start of the year, but by year end they had almost doubled and that really helped the energy industry, and accordingly that helped reduce the goodwill impairment by the industry,” said Carla Nunes, Duff & Phelps Managing Director.

Subscribers can read the full story in the WSJ.

Valuation Advisory Services

Our valuation experts provide valuation services for financial reporting, tax, investment and risk management purposes.

Goodwill and Intangible Asset Impairment

Kroll is a leading provider of goodwill, intangible and long-lived asset impairment testing.

Valuation Services

When companies require an objective and independent assessment of value, they look to Kroll.