Tag Archives: эффективность
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.
This study paper is focusing on current performance of Russia’s oil and gas industry in terms of the industry’s oil and gas company onshore operations. The Russian Federation is a member of the club of world’s major oil and gas producers working hard to meet both the needs of its own national economy in oil and gas supplies and exporting huge volumes of energy resources and petroleum products required to meet the needs of the international customers. Therefore, this review is intended to highlight the outcomes of the largest investment projects implemented in Russia over 2015-2016 periods and that includes the profile analysis of the oil production performance in Russia based on the strength of the approved General Development Plan for Russian Oil Sector.
Subsequently, this paper identifies problems facing the oil and gas industry projects inclusive of their solution prospects such as the issue of declining oil prices resulting in project freezes and high tax burdens significantly hamstringing the industry while killing the profitability of the project with the industry development derailed as a result. The oil and gas transportation cost overruns are also brought into the limelight in terms of the ineffective logistics system operation management by the oil producing companies.
To bridge certain gaps to that effect, an incentive mechanism is proposed to include the following:
Offering tax holidays to companies using innovative practices during early stages of their production operations;
Providing for Russia’s transition to a new taxation system applicable to the development of the hydrocarbon resources based on the financial performance;
Crating built environment for expansion of the system of refineries and transportation infrastructure, accordingly.
Offering tax holidays to oil and gas companies during early phases of their production operations will encourage the subsurface users to explore and further develop subsurface formations that are still unexplored. The State will surely have to incur considerable losses in the early phases of such operations; however, the state revenues will be recouped in the future due to profit taxes.
Currently, Article 424 of the Tax Code defines the subsurface areas where zero rate taxation is applied. The Bazhenov pay zone qualifies for such treatment, in particular.
This study is focused on the current system of project management practices by the oil and gas industry companies; the key project management principles are being reviewed from the standpoint of finding effective solutions to the issues facing operating companies of the industry. The classification of the projects is presented in terms of the investment volumes that are required to implement the projects and therefore these projects are classified as low-budget, mid-budget and big-budget projects, accordingly. The paper shows oil & gas operating company’s project risk assessment methodology using qualitative and quantitative analysis methods. The specifics of risk assessment methods are presented on the basis of simulation modeling which is the most reliable and widely used process in the oil and gas industry. To factor in the risks of potential oil pipeline failures and incidents, a methodological tool has been proposed for the model that incorporates an incident response procedure which is included into the costs incurred or mitigates the integral effect by a discounted amount of expenses associated with the incident response operations throughout the life cycle of a facility. The above-named approaches are based on a step-by-step determination of the effectiveness by using the model in order to conduct the risk assessment of the projects. The principal advantages of the model include transparency of evaluations, simplicity of their understanding and assessment of the project performance by all participants. The process of project implementation incorporates multiple phases and that requires careful assessment of the economic efficiency of the projects. The effective project management system is therefore one of the factors contributing to successful implementation of the project and providing for further development of the industry as well. This study paper fully proves that it is expedient to apply these project management principles so to enable investments by the oil and gas operating companies and that includes the need in conducting project risk management.