|FI125||02 - 13 Sep 2019||London - UK||11,900|
*All fees are exclusive of VAT
Why Choose this Training Course?
This PetroKnowledge Finance and Treasury Management training course will provide delegates with the essential knowledge and skills to manage the Treasury effectively thereby improving liquidity, investment returns and international cashflow as well as risk management. This highly-interactive training course will also develop an improved understanding of International Financial Reporting enabling reports to be written in accordance with IFRS and evaluated to improve decision making.
The Treasury & Risk Management function and Financial Reporting are essential to the success and sustainability of all leading corporate organisations. Never has this been more true, given the ever increasing pace of change in regulation, compliance, technology and financial risk within the Oil & Gas industry.
Treasury Management ensures sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks such as Credit Risk, Oil Price, Exchange Rate and Interest Rate Risk effectively. In addition, effective Treasury & Risk management will enable companies to make informed and better strategic decisions, providing the analysis, finance and risk assessment.
Financial Reporting develops an essential understanding of Oil & Gas accounting, reporting and performance measurement issues and practices. It develops your ability to prepare, use and critically evaluate information, applying specialist industry knowledge and relevant analytical skills.
This training course will highlight:
- The Role of Scope of Treasury & Risk Management
- The latest international tools and techniques to enable you to identify; measure and manage risk effectively
- Methods to ensure, liquidity, improved investment returns and smooth cash operations
- Capital Investment Techniques and Methods of Finance to support Strategic Objectives
- The features and Benefits of Derivatives as Risk Management tools
- The main requirements of International Financial Reporting Standards (IFRS) relevant to the Oil & Gas industry
- The Analysis & Evaluation of Financial Reports to improve decision making and performance
This comprehensive training course consists of two modules which can be booked as a 2-week Training event, or as individual, 5-Day courses.
Module 1 - Treasury and Risk Management
What are the Goals?
By the end of this training course, participants will learn to:
- Manage Cash; Liquidity & Working Capital to reduce finance costs and improve returns
- Make informed Strategic Decisions
- Determine and Implement the company’s Risk Management Strategy
- Recommend Hedging and Risk Management Decisions
- Improve the Corporate Governance of the organization
- Apply International Financial Reporting Standards most relevant to the Oil & Gas industry
- Analyse and evaluate financial reports to better meet the needs of users
- Review and use publicly available information to benchmark the business performance of your company in the Oil & Gas industry
Who is this Training Course for?
Given the importance of the Treasury & Risk Management and and Financial Reporting & Analysis, this PetroKnowledge training course is suitable to a wide range of professionals but will greatly benefit:
- Professionals who wish to up-date and improve their knowledge and skills of Treasury, Risk management and Finance
- Financial decision makers, whose techniques of decision making and analysis will be improved through attendance
- Managers and those with financial responsibilities
- Professionals acting upon the financial decisions of others, who will gain an appreciation for decision making thereby ensuring shared values within the organisation
- Professionals with an interest in finance and the latest market developments
How will this Training Course be Presented?
In order to ensure skill development as well as improved knowledge, the training course will be conducted along workshop principles using real life case studies and interactive worked examples from the Oil & Gas industry. Participants will be actively engaged, individually and as part of a group, in their discussion, analysis and evaluation throughout the course.
Participants will also be given a detailed set of handouts in hard and soft copy to enable them to review the topics covered at a later date.
Module 1 - Treasury and Risk Management
Day One: The Role of Treasury Management – An Overview
- The Role & Scope of Treasury Management
- Operation & Location of a Treasury Department – Cost or Profit Centre; Centralised or Decentralised
- Cash & Liquidity Management
- Working Capital Management
- Capital/Finance Management
- Risk Management
Day Two: Cash & Liquidity Management – A Detailed Analysis
- Cash Budgets & Forecasts
- Variance Analysis
- Meeting Cash Calls and Short-Term Methods of Finance
- Working Capital Management – determining the optimum level
- Netting & Cash Concentration Accounts
- Mult-national & Group Cash Management
Day Three: Financing and Capital Management
- Methods of Raising Long Term Finance (Equity v Debt)
- Optimizing the Capital Structure to Minimize the Cost of Capital (WACC)
- Investment of Cash Surpluses to Maximize Return
- Raising Finance to meet Strategic Objectives – M & A; Joint Ventures etc.
- Capital Investment Appraisal – NPV; IRR, Payback
- Risk Forecasting
Day Four: Risk Management
- Identifying Risks and Uncertainties – Internal & External; Financial & Non-Financial
- Measuring Risk – volatility; variance; standard deviation; probability; Value at Risk
- Determining the Risk Management Strategy – assessing impact and probability
- The 4 T’s – Tolerate; Terminate; Transfer; Treat
- Internal Controls & Internal Auditing
- Credit & Counterparty Risk Management
Day Five: Currency; Interest Rate & Commodity (Oil Price) Risk Management
- Forward Contracts and Forward Rate Agreements
- Options – Calls & Puts; European & American
- Futures – Market Correlation; Margin Payments etc.
- Swaps – Currency & Interest Rate Risk and Benefits
- Foreign Currency Accounts other Internal Methods/Tactics
- Foreign Currency Borrowing
Module 2 - International Financial Reporting Standards (IFRS) for the Oil & Gas Industry
Day Six: The Oil and Gas Sector & Major Accounting Issues
- The Oil & Gas Sector & the Macro-economic Factors
- Commodity prices, currency fluctuations, interest rate risk and political developments and environmental risk.
- Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
- Accounting Approaches
- The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method
- Introduction/Overview of IFRS in relation to the Oil & Gas Sector, with particular reference to:
- IFRS 1: First-time Adoption of International Financial Reporting Standards
- IFRS 6: Exploration for and Evaluation of Mineral Assets
- IFRS 10: Consolidated Financial Statements
- IFRS 11: Joint Arrangements
- IAS 16: Property, Plant and Equipment
- IAS 36: Impairment of Assets
- IAS 37: Provisions, Contingent Liabilities and Contingent Assets
- IAS 38: Intangible Assets
- IAS 39 Financial Instruments: Recognition and Measurement – Superseded by IFRS 9 – was to be effective 2013 but now 2018
Day Seven: Evaluating the Performance and Identifying the Accounting Issues
- Analysis of financial statements
- Income Statements
- Statement of Financial Position (Balance Sheet)
- Cash flow Statements
- Identification & Evaluation of their Accounting Policies
- DuPont Analysis – Evaluating and Improving Return on Equity (ROE)
- Evaluation of their Share Price and Investment Performance
- Case Study: BP, Chevron, Shell and SABIC
Day Eight: Accounting for Upstream Activities with Reference to IFRS
- Reserves and resources
- Exploration and evaluation
- Revenue recognition
- Depletion, Depreciation & Amortisation (“DD&A”)
- Impairment of development, production and downstream assets
- Examples: BP, Chevron & Shell
Day Nine: Joint Arrangements, Financial Instruments and Derivatives
- Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s)
- Treasury Management Issues for Multi-nationals
- The Use of Derivatives in the Oil& Gas Sector to manage the commodity, currency and interest-rate risks etc.
- British Airways Case Study – Hedging the Oil Price using Futures
Day Ten: Creative Accounting and Corporate Governance
- Creative Accounting – Enron and investor protection
- Leases – IFRS 16 (new standard)
- Auditors and reporting to investors in the oil and gas industry
- External audit investigations and reports
- The Auditor’s ‘Opinion'
- True and Fair
- Sarbanes Oxley
- Internal audits
- Ethical issues
- Corporate governance
- Government regulation
- Investor confidence and share prices