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Profitability Analysis of Downstream Investment Projects

Profitability Analysis of Downstream Investment Projects

3 days
EAV/PDP
Sessions
Dates Location Tuition Register
May 15 - 17, 2018 Rueil 2,030 €
Online By email
Who should attend?

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.

Level

  • Proficiency
  • 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.
Course Content

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.
Ways & Means
  • Case studies and exercises derived from actual refinery situations.