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Profitability Analysis of Downstream Investment Projects

3 days EAV/PDP
  • 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
  • To provide an in-depth understanding of the concepts behind the theory of capital budgeting and thus improve 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
  • to incorporate terms of financing plans in equity profitability analysis
  • to build complex computer models for cash flow analysis
  • to carry out risk analysis of investment projects
  • 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
2016 course calendar
Language Dates Location Tuition Register
May 11 - 13 Rueil €1,940 Online By email
Sep 13 - 15 Rueil €1,960 Online By email