Certificate in Financial Management for Oil and Gas Companies

Introduction

When the training course addresses a number of economic, legal, accounting, taxation, auditing, budgeting, controlling, planning, information system, managerial and strategic planning issues in a context, it is our Financial Management course.

This LAKESHORE ISL Certification training course on Certificate in Financial Management for Oil and Gas Companies provides a deeper knowledge on accounting in the oil industry and to introduce the tools of financial analysis and management. Participants in this LAKESHORE ISL Certification training course will be provided with knowledge that can be shared amongst their own colleagues, and with other departments.

This LAKESHORE ISL Certification training course on Certificate in Financial Management for Oil and Gas Companies will introduce the practical realities of today’s world, and the understanding of the various financial techniques available will enable delegates to communicate better with financial professionals, within and external to their organization, and to become more effective managers.

Specifically, you will learn to: 

• Appreciate the specificities of the international petroleum accounting standards
• Define fundamentals of cost analysis and control
• Analyze and review the financial report of a company
• Review alternative methods of accounting for exploration and production companies
• Use the methodology and techniques of audit

Who Should Attend?

• Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
• Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
• Joint Venture Accountants and Auditors
• External, Financial and Internal Auditors
• Government Regulators and Auditors
• Financial and Investment Analysts

Seminar Outline

• Overview of Accounting & Financial Essential in Oil & Gas Sector
• Financial Management in the Oil & Gas Sector
• Financial structure costing and Decision-Making
• Capital Budgeting & Financial Ratio Analysis
• Valuation of Oil & Gas Company

Why Choose this Training Course?

This LAKESHORE ISL training course is designed to provide a deeper knowledge in understanding of accounting and financial essentials. Participants in this training course will be provided with knowledge that can be shared amongst their own colleagues, and with other departments. The awareness and understanding of the various financial techniques available will enable delegates to communicate better with financial professionals, within and external to their organization, and to become managers that are more effective. This will be achieved through:

• Immediate use of the tools and techniques of financial analysis and financial management that will be acquired.
• Becoming better informed and using new financial skills that will help improve management decision-making.
• Communication of the various financial tools that are available to help the organization enhance its competitive positioning and profitability and improve the all-important cash flow.

What are the Goals? 

This Certificate in Financial Management for Oil and Gas Companies training course will give participants the required level of financial awareness and practical application, by enabling them to:

• Analyze the profit and loss account (income statement), balance sheet, and cash flow statement, and use ratios to interpret financial statements the Oil & Gas sector
• Appreciate the significant importance of cash flow (rather than profit) and discounted cash flow (DCF) in Oil & Gas companies
• Develop costing systems such as activity based costing (ABC) for optimal decision-making to maximize shareholder wealth.
• Appreciate the role of managers in the budget process and the use of activity based budgeting (ABB).
• Determine the cost of capital to evaluate alternative sources of financing and optimal financial structure (gearing).
• Effectively manage cash and working capital to reduce costs and improve cash flow in Oil & Gas companies.

Who is this Training Course for?

This LAKESHORE ISL training course is ideally suited to those who work in the Oil & Gas sector particularly those in an accounting and performance measurement role. It is designed specifically for:

• Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
• Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets
• Joint Venture Accountants and Auditors
• External, Financial and Internal Auditors
• Government Regulators and Auditors
• Financial and Investment Analysts

How will this Training Course be presented?

The 5-Day intensive training course uses a mix of interactive techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes evaluation of case studies of Oil & Gas case sector using the latest techniques, brief presentations by the consultant, group exercises and discussion followed by participants’ presentations of the results.

At the end of each day, participants have an opportunity for a one-to-one session with the training course instructor to develop their understanding further and will be provided with training course notes and examples in both hard and soft copy.

The training course is of direct relevance to the Oil & Gas sector and as a result, the organizations will benefit greatly from their employees’ participation. The organization will gain from:

• More effective finance support for front-line departments
• Greater relevance and reliability of financial and management information
• More strategic thinking and focus on performance
• More effective use of financial statements of the company, its co-ventures and its competitors
• The ability of Finance Managers and staff to work with less supervision
• Preparation of staff for increased responsibility

The training course will be of personal benefit to delegates by providing them with:

• Better understanding of the context and importance of the work you do
• Greater awareness of industry practices, problems and solutions
• Increased understanding and assurance to complete tasks successfully
• Increased self-confidence and motivation at work
• Greater job satisfaction in providing quality support to management
• Greater ability to supervise, develop and motivate colleagues

Day 1: Overview of Accounting & Financial Essential in Oil & Gas Sector

• Latest Events in the Oil & Gas sector- price volatility and supply & demand changes
• Managing the macro-economic factors, e.g. interest rates, exchange rates, oil prices
• Resources & Reserves
• Major Accounting Issues in the Oil & Gas Sector
  • Revenue Recognition
  • Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
  • Break Even Oil, Cost Oil & Profit Oil
  • Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method
  • IFRS in relation to the Oil & Gas Sector

 Day 2: Financial Management in the Oil & Gas Sector 

• Oil and Gas Company Financial
• Financial Statement Analysis in the Oil & Gas sector:
  • Profit and loss account (income statement)
  • Balance sheet
  • Cash flow statement and its importance
• Measurement of operating performance
• Measures of financial performance and financial position
• Risk measurement
• Limitations of ratio analysis
• Annual Reports Analysis

Day 3: Financial structure costing and Decision-Making

• Financial structure
  • Cost of debt
  • Cost of equity
  • Weighted average cost of capital (WACC)
  • Optimal capital structure
• Costing
  • Fixed costs, variable costs, and overheads
  • Overhead allocation, absorption and the use of activity based costing (ABC)
  • Expenses versus inventory (stock valuation)
  • Contribution compared with profit
• Decision-Making
  • Make versus buy decisions
  • Shut-down or contribution decisions
  • Product mix decisions and limiting factors
  • Decisions trees

 Day 4: Capital Budgeting & Financial Ratio Analysis 

• Capital budgeting
  • Capital rationing
  • Ranking investment projects
  • Inflation and investment
  • Using expected values and standard deviations to make decisions
  • Purposes of budgeting
  • The budget processes
  • Activity based budgeting
  • Uncertainty and risk – worst and best outcomes
  • Maximini and minimaxi regret rules
• Financial Ratio Analysis
  • Types of Ratios
  • DuPont Analysis – Evaluating and Improving Return on Equity (ROE)
  • Evaluation of Share Price and Investment Performance
  • Evaluating the Financial Performance of leading international companies in the sector

 Day 5:  Valuation of Oil & Gas Company

• Types of valuation methods
• Payback
• Net present value
• Internal rate of return
• Discounted payback
• Working capital management and cash improvement
  • Working capital and working capital requirement
  • Managing working capital
  • Cash improvement techniques
  • Cash management and the banking facilities
  • Mergers and Acquisitions Practices Today