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Profitability Analysis of Downstream Investment Projects

3 days EAV/PDP
Level
Proficiency
Audience
  • Managers and staff concerned with decision affecting medium and long term cash flows (such as investment, disinvestment and acquisitions); people who need to improve their understanding of the theory and the practice of investment analysis.
Purpose
  • This course provides an in-depth understanding of the concepts behind the theory of capital budgeting, leading to an improvement of the analysis in investment profitability studies.
Learning Objectives
  • On completion of the course, the participants will be able to:
  • use tools related to an investment profitability analysis,
  • incorporate terms of financing plans in equity profitability analysis,
  • build complex computer models for cash flow analysis,
  • carry out risk analysis of investment projects.
Prerequisite
  • Basic notions of Microsoft Excel.
Ways and means
  • Case studies and exercises derived from actual refinery situations.

Economic criteria 0.75 day
  • Value creation, capital cost and discount rate of a company.
  • Equity and debt, Corporate finance and return on capital, ROCE and ROE.
  • Cash flows and discounting principle.
  • Net Present Value (NPV), Internal Rate of Return (IRR), Pay-Out Time (POT), financial exposure, profitability index.
Global profitability analysis 0.75 day
  • Analysis of operating cash flows and economic criteria.
  • Return on capital employed.
  • Profit and Loss accounts and associated project income taxes.
  • Impact of taxation and inflation in profitability investment studies.
  • Choice of an investment program with a limited budget, scarcity cost of capital.
Risk analysis 0.5 day
  • Risk analysis methodology.
  • Sensitivity analysis in investment decision, Spider and Tornado charts.
  • Limits of sensitivity analysis.
Case studies on investment profitability 1 day
  • Octane improvement: implementation of isomerization and/or alkylation process units.
  • Hydrocracker project.
  • Refinery project.
  • Steam cracker project.
2017 course calendar
Language Dates Location Tuition Register
May 16 - 18 Rueil €2,000 Online
Sep 12 - 14 Rueil €2,020 Online