Economics. Finances. Management
THE OBJECTIVES AND GOALS IN INVESTMENT ACTIVITIES OF OPERATING COMPANIES FOR THE OIL AND GAS INDUSTRY
This study paper is focused on the current system of investment activities conducted by operating companies for the oil and gas industry in order to highlight the key models driving the effectiveness of the investment projects. The accounting and cost models are benchmarked in terms of their analysis of the objective, methodology and selection of the object of the analysis and that includes the cost model key specifics and benefits. The cost model analysis implies highlighting market valuation of the business; therefore, the attracted resources and funds are evaluated at a specific point in time (then current) in terms of the opportunity of using fixed net worth resources and assets for continued company operations. There are different mathematical models and methods being used for assessing financial position and predicting potential of bankruptcy of companies, based on the calculation of individual financial ratios and combinations thereof. The most famous multifactor models for predicting insolvency of companies include both international (Altman Z-score two-factor; the five-factor Altman model; the four-factor Tafler and Tishaw model; the four-factor Liese model), and national (five-factor Seifullin and Kadykov model; the four-factor Irkutsk bankruptcy prediction model; the five-factor Savitskaya model) analysis models. In keeping with the cost management approach a decision-making process must be focused on value maximization across all levels of company operations management. Financial and economic performance parameters are the targeted objects ensuring that objectives for strategic effectiveness and cost management can be achieved. The use of financial model for evaluation of company’s net is also highlighted. The study paper features a balanced scorecard (BSC) developed by r. Kaplan and Norton that became the most widely-used prediction tool because this concept combines company’s long-term development assessment ratings and its current financial performance during the operations. The BSC metrics are company-specific being used to assess and measure the operating company’s activities depending on its mission, vision and strategy based on the following important factors: internal processes, customers, finances, personnel training and development.
Results of the analysis of structure and efficiency of use of equity of the largest oil companies of the Russian Federation are presented in article. Dynamics of equity on the largest oil companies of Russia is presented: PJSC Rosneft, PJSC Lukoil, JSC Surgutneftegas, PJSC Gazprom Neft, PJSC Tatneft, PJSC ANC Bashneft. The structure and structure of all capital of the companies and also structure and structure of equity of the oil companies are analysed. Results of calculations have shown that the Russian oil companies are focused on a high share of equity in financing sources though this share and differs on the oil companies. At the same time the retained earnings act as the main source of equity of the oil companies.
Indicators of efficiency of use of equity of the oil companies are calculated and analysed. By results of calculations deterioration in turnover of equity in 2016 at most the considered companies, existence of problems with own working capital (except for PJSC Tatneft and JSC Surgutneftegas) and low profitability of equity at the PJSC Rosneft companies, PJSC Lukoil, JSC Surgutneftegas in 2015-2016 is noted.
The existing approaches to estimation of cost of equity are considered, including the method of dividends, a method of income (profitable approach), a method of assessment of yield on financial assets on the basis of use of the CAMP model, model have arrived to one action, model of an award for risk.
Assessment of equity of the oil companies on the example of the PJSC ANC Bashneft company and the PJSC Rosneft company is carried out. Calculations have shown that for the end of 2016 of a stock of both companies have been overestimated by the market.
In the article the author considers the stages of development of strategic planning approaches and tools, analyzes the shortcomings of each approach, and creates conditions under which it is expedient to use various strategic planning tools. The main stages of the evolution of scientific schools of strategic planning are systematized: school of design, planning, positioning, entrepreneurship, cognitive school, teaching, power, culture, environment, and configuration.
Presented are modern approaches to strategic planning, widely applied in practice by domestic and foreign companies. The practice of using modern approaches to strategic development planning by oilfield service companies has been studied, and a number of differences between Russian and foreign companies have been revealed. Strategic planning for the development of foreign companies is of a long-term nature. In spite of the fact that there is a well-defined plan, in fact planning is very flexible and with the slightest change in the market, corrections are immediately made to the created plan and are adjusted to the current situation. A great deal of attention is paid to the problems of increasing the productivity of production, as well as to increasing the cost of business.
Studying the experience of strategic planning of Russian oilfield service companies shows that they actively use such strategic directions as integration, diversification, access to new markets. Based on the study, the main problems of strategic planning for the development of Russian oilfield services companies were identified. Domestic companies have difficulties in conducting analysis and forecasting of economic processes within the company, determining their strategic position in the market, developing and evaluating alternative development options. The need to improve the methodological support of strategic planning for the development of oilfield service companies, taking into account industry specifics, is determined.
In conditions of economic sanctions against Russia from Western countries, as well as in connection with the devaluation of the ruble, the actual problem for the whole economy of the country is the realization of the policy of import substitution.
Pump equipment is one of the types of machine building products that have the widest application in the strategically important for the country’s economy branches – the mining, oil and gas, energy industries. The share of import pump equipment in these industries on some critical positions reaches up to 80%. In the framework of the state policy of import substitution in 2015 by orders of the Russian Government Ministry of Industry and trade plans for import substitution in some industries were put in action. Indicator of the import substitution program in oil and gas industry and power engineering in respect of pump equipment, is to reduce by 2020 the share of imports for critical positions from 70-80% to 40-50%.
In a market economy, it is important that the process of import substitution was conducted as efficiently as possible – with minimum time and cost. Thus, to realize the process of import substitution it is important not only to set the final targets of the process, butto develop the effective methods of carrying out the process of import substitution, allowing step by step to know: what, why, and in what sequence should do. However, scientific and methodical fundamentals of practical realization of the import substitution process are rather undeveloped.Actual are the questions of the defining criteria for objective comparison of imported and domestic products for the purpose of import substitution, the measure of import dependence and sequence of the stages of the process.
The article presents the algorithm of a process of import substitution of pump equipment. This algorithm can be the basis for the elaboration of a practical manual of import substitution process forraw mineral companyusing many items of pump equipment. Methodological questions concerning the content of individual stages of the proposed algorithm are reviewed. The criterion for assessment of the level of import dependence on a separate group of pumps and the criterion of efficiency of the pump, which can be used for objective comparative evaluation of imported and nationalanalogs, are suggested.
The process of price formation and the role therein of the free market and the state – one of the problems, which still, in principle, has not developed a consensus, since it affects the interests of all social strata, States, which do not always coincide. In fact, the universal and complete freedom of pricing in the history never was. For various stages of economic history are peculiar only to certain differences in the degree and forms of restriction of liberty game prices. A special role in the recognition of the need for state intervention in the economy, including pricing played the second methodological revolution in economic science, associated with the great depression – the global economic crisis of 1929-1933 gg.
Key events for regulation of prices can carry legislative, judicial and administrative. World economic history has different methods of state regulation of prices: antitrust regulation, price monitoring, administrative price fixing, “leadership in prices,” depreciation policy, membership in international economic organizations, regulation of foreign economic relations…
Global objectives of state influence on prices are: promoting structural adjustment and modernization of the national economy, improving the rate and proportions of economic development, growth of competitiveness on the world market, fighting inflation, smoothing of social tension. Ultimately, control in pricing is the implementation of the course of state regulation – optimisation of economic development and stabilization of the social system.
The article describes the basic methods of state regulation of prices, and emphasis on the oil and gas sector.