Financial Management in Oil & Gas and Petrochemical Industry

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Venue Starting Date Duration Fees Join Now
Online - Virtual , 20240528 28 - May - 2024 2 Hrs X 8 Sessions $2,100 Register
Istanbul - Turkey , 20240819 19 - Aug - 2024 5 - Day $5,950 Register
Online - Virtual , 20241015 15 - Oct - 2024 2 Hrs X 8 Sessions $2,100 Register
Dubai - UAE , 20241118 18 - Nov - 2024 5 - Day $4,950 Register

COURSE OVERVIEW

Financial decision-making in the petroleum industry accounts for billions of dollars every year. Due to the fluctuating costs, risks, and unpredictability of the market, efficient Financial Management in Oil & Gas and Petrochemical Industry play a vital role. Due to the complexity of the Oil & Gas industry, specific financial management principles are used for organizational assets management and fiscal control and management.

This Financial Management in Oil & Gas and Petrochemical Industry provides more profound knowledge of accounting in the oil industry and introduces the tools of financial analysis and management. It covers several economic, legal, accounting, taxation, auditing, budgeting, controlling, planning, information system, managerial, and strategic planning challenges. You will learn accounting & financial essentials in the Oil & Gas Sector and the petrochemical industry, including Financial structure costing and Decision-Making, Capital Budgeting & Financial Ratio Analysis, and Valuation of Oil & Gas Companies and the petrochemical industry.

LEARNING OBJECTIVES

By attending Financial Management in Oil & Gas and Petrochemical Industry training seminar, delegates will gain knowledge in:

  • Analyze the profit and loss account (income statement), balance sheet, and cash flow statement, and use ratios to interpret financial statements in the Oil & Gas sector, and petrochemical industry
  • Appreciate the significant importance of cash flow (rather than profit) and discounted cash flow (DCF) in Oil & Gas companies and the petrochemical industry
  • Develop costing systems such as activity-based costing (ABC) for optimal decision-making to maximize shareholder wealth.
  • Appreciate the role of managers in the budget process and the use of activity-based budgeting (ABB).
  • Determine the cost of capital to evaluate alternative sources of financing and optimal financial structure (gearing).
  • Effectively manage cash and working capital to reduce costs and improve cash flow in Oil & Gas companies and the petrochemical industry

TARGET AUDIENCE

This course is designed for professionals who wish to increase their skills in Financial Management in Oil & Gas and Petrochemical Industry; they include:

  • Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
  • Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
  • Joint Venture Accountants and Auditors
  • External, Financial, and Internal Auditors
  • Government Regulators and Auditors
  • Financial and Investment Analysts

TRAINING METHODOLOGY

This highly practical and results-oriented program is designed based on the adult learning concept. This includes the evaluation of case studies of Oil & Gas case sector and petrochemical industry using the latest techniques, brief presentations by the consultant, group exercises and discussion followed by participants’ presentations of the results. The course will reinforce key concepts within an inspiring and engaging learning environment.

Pre & Post course assessments will be used to measure the effectiveness of this training.

COURSE CONTENTS

Module 1 - Overview of Accounting & Financial Essential in Oil & Gas Sector, and Petrochemical Industry

  • KeyTopics:

    • 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

Module 2 - Major Accounting Issues in the Oil & Gas Sector, and Petrochemical Industry

  • KeyTopics:

    • Revenue Recognition
    • Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
    • Break Even Oil, Cost Oil & Profit Oil
    • Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method
    • IFRS in relation to the Oil & Gas Sector and petrochemical industry

Module 3 - Financial Management

  • KeyTopics:

    • Oil and Gas Company Financial
    • Financial Statement Analysis in the Oil & Gas sector and petrochemical industry:
      • Profit and loss account (income statement)
      • Balance sheet
      • Cash flow statement and its importance
    • Measurement of operating performance
    • Measures of financial performance and financial position
    • Risk measurement
    • Limitations of ratio analysis
    • Annual Reports Analysis

Module 4 - Financial Structure Costing and Decision-Making

  • KeyTopics:
    Financial Structure

    • Cost of debt
    • Cost of equity
    • Weighted average cost of capital (WACC)
    • Optimal capital structure

    Costing

    • Fixed costs, variable costs, and overheads
    • Overhead allocation, absorption and the use of activity based costing (ABC)
    • Expenses versus inventory (stock valuation)
    • Contribution compared with a profit

    Decision-Making

      • Make versus buy decisions
      • Shut-down or contribution decisions
      • Product mix decisions and limiting factors
      • Decisions trees

Module 5 - Capital Budgeting & Financial Ratio Analysis

  • KeyTopics:
    Capital Budgeting

    • 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

Module 6 - Valuation, Working capital Management and Cash Improvement

  • KeyTopics:
    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

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