Introduction 

This Financial Skills for the Energy Industry training course has been specifically designed to develop the finance skills of those working in the Energy Industry. The industry is capital intensive, with long lead times from exploration to revenue, and highly volatile in terms of energy prices and costs. As a result financial knowledge and skills are essential for all professionals working in the industry.

Course Objectives:

By the end of this FINANCIAL SKILLS FOR THE ENERGY INDUSTRY course, participants will learn to:

• Use Excel to aid analysis

• Evaluate their organizational financial performance

• Make sound investment decisions

• Manage financial aspects of projects

• Manage financial risk effectively

 Target Audience:

• Managers with financial responsibility

• Professionals whose role involves economic or financial decisions

• Professionals with an interest in finance

• Line managers and supervisors with an interest in the financial performance of their organization

• Professionals who aspire to become active decision-makers

 Course Outline:

Day 1

FINANCE SKILLS

• What is Finance?

• Financial Calculations relevant to the Energy Industry

• Excel & Financial Data Analysis

• Evaluating the Volatility of Energy Variables – Oil Price, Crack Spread, Interest Rates, Exchange Rates

• Mean & Standard Deviation

• Correlation

Day 2

FINANCE & ACCOUNTING

• The Role of Financial Management

• The Role of Finance in the Energy Industry

• Methods of Raising Finance for Energy Projects

• The Cost of Finance

• Leverage/Gearing and the Optimal Capital Structure

• Accounting in the Energy Industry

Day 3

EVALUATING THE FINANCIAL PERFORMANCE OF COMPANIES IN THE ENERGY INDUSTRY

• Understanding Published Financial Statements

• Liquidity, Profitability & Operational Performance

• Energy Industry Performance Measures

• Du-Pont Analysis

• Stock Market Performance

• Benchmarking the Energy Industry & The Market

Day 4

ENERGY PROJECT FINANCE

• Major Energy Projects

• Project Finance

• Special Purpose Vehicles

• Payback, NPV & IRR – Evaluating Energy Projects

• Financial Risk Management

• Calculating the Cost/Benefit of Hedging Financial Risk

Day 5

FINANCIAL MANAGEMENT OF ENERGY PROJECTS

• Budgetary Management of ongoing Projects

• Earned Value Analysis

• Variance Analysis

• Re-financing Decisions

• Financial Evaluation of Project Performance

• Financial v Social & Economic benefits