New Delhi, May 19 (TIWN) The oil and gas companies most committed to reinventing themselves over the next three years as a result of the Covid-19 pandemic expect to grow their revenues and margins at twice the rate of companies least committed to reinvention, according to a new report from Accenture that outlines best practices companies should adopt to thrive in the energy transition.

The report, titled "Necessity is the Mother of (Re)invention" features results from a global survey of more than 200 oil and gas executives and introduces Accenture's "Reinvention Index," which analysed the companies across key factors related to reinvention. Accenture classified the 10% of companies that scored the highest in the Index - who are setting the pace for reinvention through bold and decisive action - as reinvention "leaders," with those in the bottom 25% labelled "laggards."

In response to the Covid-19 pandemic, all of the leaders plan at least some level of significant changes to their business, with half (50%) intending radical reinvention, compared with only 9% of the laggards. Almost seven in 10 Leaders (69%) consider enterprise-wide transformation essential to this reinvention and 77% of Leaders see cloud as essential to their business reinvention plans in the next three years.

And reinvention could drive substantial rewards. For instance, Leaders expect minimum margin growth of 7%, on average, in the next three years, more than double that of the Laggards (3%), and expect to grow revenues over the same period by at least 11%, compared with just 6% for the Laggards.

"Competition from new energy sources, environmental accountability, talent scarcity, investor apathy and the COVID-19 pandemic have led most oil and gas companies to realise the need to transform to ensure profitability, embrace sustainability and maintain their relevance," said Muqsit Ashraf, a senior managing director at Accenture who leads its Energy industry group. "What's required isn't just piecemeal transformation but wholesale business reinvention, which is anchored in a new approach that we call our '5C' model."