FINANCIAL MANAGEMENT FOR OIL AND GAS COMPANIES AND PETROCHEMICAL INDUSTRIES

Introduction:

This training in Financial Management for Oil & Gas Companies and Petrochemical Industries offers a deeper understanding of accounting in the oil industry and the application of the financial analysis and management methods. The training will provide learners with information that can be shared with their own colleagues and other departments. This training will incorporate the reality of today’s world and the understanding of the various financial strategies available to help delegates to better interact with financial professionals inside and outside their company and become more effective managers.

Course Objectives:

At the end of this training, delegates will be able to:

• Evaluate the income statement, statement of financial position and cash flow statement and use ratios to view the oil & gas and petrochemical industry financial statements
• Recognize the importance o cash flow and Discounted Cash Flow in petrochemical and oil and gas companies
• Optimize shareholder capital, build costing mechanisms such as Activity-Based Costing for efficient decision-making
• Recognize the role of managers in the process of budgeting and the use of Activity Based Budgeting
• Estimate the cost of capital to determine potential financing resources and optimal financial structure.
• Manage cash and working capital effectively to reduce cots and increase the cash flow in oil & gas companies and the petrochemical industry

Course Outlines:

Day 1: Overview of Accounting & Financial Essential in Oil & Gas Sector and Petrochemical Industry

• Latest Events in the Oil & Gas Sector – price volatility and supply & demand changes
• The Nature of the Petrochemical Industries
• Managing the Macro-economic Factors, e.g. interest rates, exchange rates, oil prices
• Resources & Reserves
• Major Accounting Issues in the Oil & Gas Sector and Petrochemical Industry

Day 2: Financial Management in the Oil & Gas Sector and Petrochemical Industry

• Oil and Gas Company Financial
• Financial Statement Analysis in the Oil & Gas Sector and Petrochemical Industry
• Profit and Loss Account (income statement)
• Balance Sheet
• Cashflow Statement and Its Importance
• Measurement of Operating Performance
• Measures of Financial Performance and Financial Position
• Risk Measurement
• Limitations of Ratio Analysis
• Annual Reports Analysis

Day 3: Financial Structure Costing and Decision-Making

• Cost of Debt
• Cost of Equity
• Weighted Average Cost of Capital (WACC)
• Optimal Capital Structure
• Fixed Costs, Variable Costs, and Overheads
• Overhead Allocation, Absorption and the Use of Activity Based Costing (ABC)
• Expenses vs. Inventory (stock valuation)
• Contribution Compared with Profit
• Make vs. Buy Decisions
• Shut-down or Contribution Decisions
• Product Mix Decisions and Limiting Factors
• Decisions Trees

Day 4: Capital Budgeting & Financial Ratio Analysis

• Capital Rationing
• Ranking Investment Projects
• Inflation and Investment
• Using Expected Values and Standard Deviations to Make Decisions
• Purposes of Budgeting
• The Budget Process
• Activity based Budgeting
• Uncertainty and Risk – worst and best outcomes
• Maximin and Minimax Regret Rules
• Financial Ratio Analysis
• Types of Ratios
• Dupont Analysis – Evaluating and Improving Return on Equity (ROE)
• Evaluation of Share Price and Investment Performance
• Evaluating the Financial Performance of Leading International Companies in the Sector

Day 5: Valuation of Oil & Gas Company and Petrochemical Industry

• Types of Valuation Methods
• Payback
• Net Present Value
• Internal Rate of Return
• Discounted Payback
• Working Capital Management and Cash Improvement
• Working Capital and Working Capital Requirement
• Managing Working Capital
• Cash Improvement Techniques
• Cash Management and the Banking Facilities
• Mergers and Acquisitions Practices Today

Who Should Attend?

• Corporate Accounts, Management Accountants, Accounting Controllers, Treasury Officers
• Finance Staff in the areas of general accounting, payables, receivables, inventory, fixed assets etc.
• Joint Venture Accountants and Auditors
• External Auditors, Financial Auditors and Internal Auditors
• Analysts for the commercial and business industries

Delivery Method: Lectures, discussions, syndicate work, case studies, role – play and group exercises. Audio – Visual aids will be used to reinforce these training and learning methods.

Venue: Gambia

Fee: $5,000.00

Duration: 1 Week

Date: Aug 28^th – 1st Sept 2023