Revenue‚ Capex‚ Opex 3 Reserves 3 Sunk costs: 3 Opportunity Costs: 3 Royalty‚ Tax‚ Ring fencing 4 Types of Petroleum Fiscal Regimes 4 Net Cash Flow 4 Concessionary system vs. Production Sharing contracts 5 Going Internation – Bidding Process 5 Economic Modelling 6 Production Costs 7 Wildcat 7 What is the wild cat success ratio? And what are the considered factors? 7 Depreciation 8 Abandonment 8 Goodwill‚ Leases‚ Ringfencing 9 Volatility of Crude Oil 9 Volatility of Gas 10 Forecasting 10 Opportunity
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GAAP vs IFRS Diffen › Economics › Business › Business Finance › Accounting GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US‚ while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world. GAAP is considered a more “rules based” system of accounting‚ while IFRS is more “principles based.” The U.S. Securities and Exchange Commission is looking to switch to IFRS by 2015. What follows
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1. Return on equity (ROE) using the DuPont formula is: a) Earnings before Interest/Sales * Sales/Assets * Assets/Equity * Earnings before interest/Net Income b) Net income*asset turnover*tax rate c) Return on Assets (ROA)*financial leverage d) Both a) and c) 2. Which of the following is true a) Return on Assets is influenced by financing activities b) ROE is not affected by financial structure c) Profit margin is a measure of asset
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Process-design intensification – direct synthesis of adipic acid in flow I. Vural Gürsel‚ Q. Wang‚ T. Noël‚ V. Hessel Eindhoven University of Technology (TU/e)‚ Micro Flow Chemistry & Process Technology‚ Dep. Chem. Eng. and Chem.‚ Den Dolech 2‚ 5600 MB Eindhoven‚ The Netherlands; tel: +31(0)40 247 3108‚ fax: +31(0)40 244 6653‚ e-mail: I.Vural@tue.nl. The use of microreactors for faster and eco-efficient process development and design as the third intensification field in Novel Process
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taxation by tax payment and the tax rate is 30%. According to the formula: FCFF= Net Income + Depreciation + Interest Expense – Change in net working capital – CapEx We can get the free cash flows to firm every year after 2005: 2006F 2007F 2008F NI 7 13 19 Interest Expense 0.7 0.7 0.7 Depreciation 2 3 4 Change in working capital -1 0 -1 CapEx 5 6 6 FCFF 5.7 10.7 18.7 Since the exit Free Cash Flow multiple is 13‚ the residual value of Framedia at the end of 2008 will be 13*18.7=243.1. The stand-alone-value
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target 3.Loose management control 4.Production target of new facility cannot be fixed in advance 26 1. Increase plant utilization. 2. Increase sales and productivity 3. Keep employees motivated and efficient 4. Achieve more than break even on CAPEx for new facility 1.Motivates to work above targets. 2. Flexible working environment 3. Want to continue their autonomy Group Incentives 1.Incentives too generous 2. Prevailing only at Deloitte but not at other ABC plants 26 1.Avoid loafing
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possible and that cost inefficiencies are stripped out from the very outset is arguably more important than ever before. Minimizing operational costs When it comes to new projects oil & gas operators have traditionally been good at minimizing their CAPEX spend. However‚ there has been much less focus given to limiting the cost of operation of their assets. With maintenance costs typically responsible for 20-30% of the overall OPEX expenditure‚ this is one area where the downstream sector in South-East
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ARVIND MILLS Environmental Factors POLITICAL LEVEL – Inability to anticipate & manage risk NAFTA – ▪ Poor prediction (Thought NAFTA impact would be 10 years; but impacted in less than a year) ▪ Mexico emerged as a new garment cluster (Competition) ▪ 17% Duty for outside of NAFTA made Arvind non‐competitive Lack of vision ▪ Got carried away by its success‚ hype by media‚ stock market and industry FUNCTIONAL LEVEL Blind expansion /Careless /lavish spend p
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Chiffon Case Note: This case assumes that Jell-O would realize losses with or without the Chiffon project; however‚ a review of this case suggests the opposite. Actually‚ Jell-O would grow and the cost of the agglomerator should be included as an incremental cash flow. Problem Statement In 1967‚ General Foods (GF) was contemplating the launch of a new product line - Chiffon. As one of the market leaders in the food business‚ the company was focused on increasing and protecting its current
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The history of the automobile begins as early as 1769‚ with the creation of steam engined automobiles capable of human transport.[1]:14 In 1806‚ the first cars powered by an internal combustion engine running on fuel gas appeared‚ which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. The year 1886 is regarded the year of birth of the modern automobile - with the Benz Patent-Motorwagen‚ by German inventor Carl Benz. Cars powered by
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