This is the course that energy industry professionals must attend to acquire the financial know-how and techniques essential in support of successful business management.
The financing of new investment in all industries usually requires major funding and is generally risky. The financing of investment in the acquisition, exploration, and development, and subsequent operation and maintenance of new assets in the energy industry faces additional risk. The decisions as to whether or not to invest in new capital projects require critical business decision-making during the investigation and feasibility assessment phases but also appraisal of returns on capital employed and other financial implications, and the analysis of risk.
The financial evaluation of potential investments requires the preparation of detailed cash flow projections to determine, as accurately as possible, the expected returns to an organisation under varying conditions of uncertainty. Realistic cash flow projections will reflect the initial capital expenditure required for the acquisition of assets, working capital requirements, and expected revenues and operational costs that include, for example, maintenance of assets over their expected economic lives.
On a global scale many capital projects fail to meet targeted milestones, and strategic and financial objectives. This is usually as a result of failing to plan properly and apply appropriate techniques of investment evaluation. The financing decision-making, planning, and risk analysis tools and techniques used to evaluate potential investments and determine the likelihood of success are all included in this programme.
This training programme is designed to provide participants with an understanding of financing, risk analysis, risk management, and decision-making through being able to:
- Identify how financial decision-making regarding investment and financing both impact on value creation
- Use financial planning models as the basis for determining cash flows for investment appraisal
- Apply the wide range of methods of investment appraisal
- Use the tools and techniques of risk analysis, for example sensitivity analysis, simulation modelling and scenario analysis to evaluate investments
- Evaluate the financial strategies used to manage and mitigate financial risk
- Use the techniques of problem-solving and root cause analysis to develop continuous improvement initiatives for enhanced business performance
Who Should Attend?
This course is designed for energy professionals including project leaders, project engineers, production engineers, financial managers, analysts and other managers who are responsible for business management and decision-making, risk management, and project investment evaluation, and for managing costs, revenues and cash flows.
The Course Outline
Among a wide range of valuable topics, the following will be prioritised:
- Fundamentals of decision analysis
- The business decision-making process
- Measuring profitability
- Strategy formulation and direction
- Financial planning and modelling
- Decision analysis and appraisal of domestic and international investment
- Sources of financing and the cost of capital
- Risk identification, analysis and management using appropriate responses
- Risk analysis, expected values, simulation and scenario analysis
- Problem-solving techniques, decision support and performance improvement techniques
- Certificate of Completion will be provided to delegates who attend and complete the course