Classroom Dates
09 - 13 Sep 2024 London $5,950

Energy finance is inherently interdisciplinary. It starts with exploring the linkages between energy markets and financial markets with the view to understand energy products from a financial prospective. One recent advance in energy finance focused on understanding financing and investment decisions made by energy firms. This curiosity was due to recent events that shows energy firms can be irrational in their investment decisions at the expense of stakeholders. They are unique and worthy of being investigated separately from other industries. The strategic importance of energy firms around the globe has increased tremendously over the last decade and hence there is a need to explore and understand energy firms’ financing and investment decisions.

This Energy Finance training course explores the principals and practical applications of financial and investment decisions in the energy industry. In addition, the training course highlights various techniques and methods appropriate for analysing and estimating cost of capital for energy firms.

This Energy Training Centre training course will highlight:

  • Financial Modelling for energy firms
  • Financial Analysis
  • Investment decisions
  • Cost of capital estimation
  • Energy market derivatives

This training course is designed to provide the delegates with up-to-date knowledge and practical skills relevant in energy finance.

By the end of this Energy Finance training course, participants will learn:

  • Analyzing and interpreting annual report and accounts of energy firms
  • Use ratio analysis to evaluate financial performance of energy firms
  • Use analytical techniques to forecast future performance of energy firms
  • Cost of capital estimations
  • Investment decisions
  • Energy derivatives

This training course will be structured as a highly participative workshop with formal presentations, interactive worked examples and simulations. Relevant examples are provided to illustrate the application of each of the topics covered. Participants will have the opportunities to learn and apply the various techniques in analyzing financial and investment decisions. Difficult mathematical concepts are minimized wherever possible and handled in a visual way that is easy to understand with numerous illustrative examples.

The organisation will benefit from the development and practical application of advanced skills in financial market risk as well as from raised awareness of important recent developments in energy finance. Specific benefits for the organisation include:

  • Up to date knowledge of the current energy finance.
  • Development of skills in the applications of financial analysis.
  • Raised awareness of the implications of investment decisions
  • Ability to understand the importance of cost of capital for energy firms
  • A good knowledge of energy derivative market.

Participants will benefit from updated knowledge and practical skills in energy finance, which will allow them to make a greater contribution to the development and improvement financial decisions at the same time enhancing their own career development potential. Participants will have:

  • A Good understanding of the principles of financial analysis for energy industry.
  • Assessing and estimating cost of capital. 
  • Understanding fundamentals of financial accounting in energy market
  • In-depth knowledge on investment analysis.
  • Familiarity with the technical details used in cost of capital and financial modelling for energy firms.
  • A better understanding of the current market trend

This Energy Finance training course would be relevant to all of those involved in energy financial and investment decisions including:

  • Financial officers
  • Controllers, and accountants
  • Treasurers
  • Corporate planning and business development professionals
  • Managers from any other non-financial areas
  • Investors
  • Treasury analyst

Day one: Financial Analysis for Energy Firms 

  • The importance of financial data analyses
  • Main users and source of Financial Information
  • The key purpose of published Annual Reports and Accounts
  • The Structure and Contents of an Annual Report and Accounts
  • Agency problem and creative accounting for energy firms
  • The three core Financial Statements
  • Income Statement
  • Balance Sheet
  • Statement of Cash Flows 

Day Two: Business Performance for Energy Firms

  • The importance of ratio analysis for business performance
  • Ratio and performance analysis from management’s point of view
  • Ratio and performance analysis from owners’ point of view
  • Ratio and performance analysis from lenders’ point of view
  • Pyramids of Ratio
  • A system of financial performance analysis
  • Distress analysis for energy firms 

Day Three: Financing Decisions for Energy Firms 

  • Long-Term Sources of Finance
  • Types of Equity Capital
  • Types of Debt
  • The Optimum Capital Structure/Leverage – Equity or Debt ?
  • Weighted Cost of Capital (WACC) and The Capital Asset Pricing Model (CAPM)
  • Calculating your WACC and CAPM
  • When & How to use WACC and CAPM
  •  Short-Term Sources of Finance available for energy firms 

Day Four: Investment Appraisal for Energy Firms

  • Investment appraisal using NPV, IRR and payback as applied to the energy firms
  • Use of Excel functions for investment appraisal: IRR, PV and NPV
  • Modified internal rate of return (MIRR)
  • Use of scenario analysis and stress testing
  • Economic Value Added (EVA) 

Day Five: Energy Market 

  • Physical forward and future market
  • Spot Market
  • Energy Derivatives
  • Energy Derivatives Pricing models
  • Options
  • Call Options
  • Put Options
  • Volatility


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