...Midland Energy Resources, Inc.: Cost of Capital Analysis TABLE OF CONTENTS I. EXECUTIVE SUMMARY ........................................................................................ 2 II. COMPONENT ESTIMATIONS ............................................................................... 2 1. Effective Tax Rate - t ............................................................................................. 2 2. Capital Structure – D/E ......................................................................................... 3 3. Cost of Debt - r" .................................................................................................... 3 Exploration & Production (E&P) ................................................................................ 3 Refining and Marketing (R&M).................................................................................. 4 Petrochemicals ......................................................................................................... 4 4. Cost of Equity -r# ................................................................................................... 4 1) r$ ........................................................................................................................ 4 2) βlevered ............................................................................................................. 4 Exploration & Production (E&P) .................................................................
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...A SUMMER TRAINING REPORT ON “STUDY OF CORPORATE BUDGET AND PROJECT APPRAISAL” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT (FINANCE) By Abhay Goyal 13DM006 Under the guidance of Dr. Girish Jain Mr. Anil Kumar Professor DGM (F&A) Accounting and Finance ONGC BIMTECH New Delhi 2013-15 TABLE OF CONTENTS CONTENTS CERTIFICATE FROM MENTOR v CERTIFICATRE FROM HR vi SUMMER PROJECT CERTIFICATE vii ACKNOWLEDGEMENT viii LETTER OF TRANSMITTAL ix LETTER OF AUTHORIZATION x EXECUTIVE SUMMARY 1 1. INTRODUCTION TO THE COMPANY 3 1.1 Background 3 1.2 Overview of the Company 3 1.3 ONGC Group of Companies 4 1.4 Basic Information 5 1.5 Organization Structure (CRC) 5 1.6 Vision and Mission Statement 6 1.6.1 World Class 6 1.6.2 Integrated In Energy Business 6 1.6.3 Dominant Indian Leadership 6 1.7 Strategic Vision 6 1.8 Salient Features about ONGC 6 1.8.1 ONGC in Global Rankings 6 1.8.2 ONGC- Achievements in ensuring Energy Security of India 7 1.9 Corporate Social Responsibility 7 1.10 Future Outlook 8 1.11 ONGC Offices All Over India 8 1.12 Organization Structure of the Finance Function of ONGC 9 2. FINANCIAL STATEMENT ANALYSIS 11 2.1 Financial Performance of ONGC (2012-13) 11 2.1.1 Sales of ONGC 11 2.1.2 Net Profit of ONGC from the Year 2007-13 11 2.1.3 Debt-To-Equity Ratio 12 2.1.4 Dividend of ONGC from 2007-13 12 2.1.5 Earning Per...
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...Petroleum refers to the hydrocarbon compounds of crude oil and natural gas that are found in the underground rock formations Reservoirs are generally thousands of feet below the surface and are made up of the remains of small marine plants and animals that lived millions of years ago. Petroleum may also seep to the earth’s surface along fault lines and cracks Petroleum refers to both crude oil and natural gas Modern uses of petroleum and its byproducts include: Transportation fuels (gasoline, diesel, jet fuel, and compresses natural gas) Heating Fuels (Propane, heating oil and natural gas) Electric Generation fuels such as natural gas and fuel oil Manufactured products such as plastics and building materials. Crude oil refers to unrefined hydrocarbon mixtures produced from underground reservoirs that are liquid at atmospheric pressure and temperature Classified as either light or heavy depending on the density of the mixture Density is measured in API gravity Heavy crude oil has more of the longer, larger hydrocarbon molecules (greater density) Difficult to produce and transport to market; more expensive to process; weighs more but sells for less Natural Gas refers to hydrocarbon mixtures that are NOT liquid but gaseous at normal atmospheric pressure and temperature. Natural Gas is largely methane, which is a clear, odorless gas. It has the smallest natural hydrocarbon molecule (CH4). Natural Gas mare also contain some of the larger hydrocarbon molecules commonly...
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...Financial Outlook page 8 14.1 Selected Financial Data from 10K (2008-2012) page 8 14.2 Income Statement (2008-2012) page 9 14.3 Cash Flow (2010-2012) page 9 14. The Income Approach page 10 15.4 Net Cash Flow page 10 15.5 Discounting page 10 15.6 The Build-Up Model page 10 15.7 Risk-Free Rate page 10 15.8 Equity Risk Premium page 10 15.9 Size Premium page 11 15.10 Industry Adjustment page 11 15.11 Company-Specific Risk Adjustment page 11 15.12 Estimated Equity Discount Rate page 11 15.13 Weighted Average Cost of Capital page 11 15.14 Adjustments page 12 15.15 Assumptions page 12 15. The Market Approach page 16 16.16 Guideline Publicly Traded Company Method page 16 16.17 Guideline Companies Selection page 16 15.2 (a) Buyer’s Criteria page 16 15.2 (b) Appraisers’ Reasoning in Selecting the...
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...Date- 21th May 2012 You have been assigned as a leader of a cross functional team of internal consultants to your CEO and the Board for your company. Your company is faced with dwindling profit and constant chaos due to: 1. Intense competition from local competitors 2. New entrants from China/Vietnam with very low prices 3. Increasing inventory of great products which used to be fast moving 4. Lack of coordination with supply chain decisions and customer demand from CRM 5. Customers of least profit getting maximum attention and more profitable customers defecting 6. Sales Force placing unreasonable demands coupled with production interruption 7. Lack of integrated and coordinated planning and control 8. Cost based pricing creating havoc in the profits 9. Escalating support costs and huge growth in indirect costs and 10. Lack of motivation , poor performance on the part of senior management and attrition Required: Q-I) Write a report to strategically fix all these problems with clear execution and implementation steps so that the organization is managed effectively and efficiently for excellence and regains profitability and high morale. You may also use all or most of the topics discussed and the 10 key takeaways. Solution: Leader of a cross functional team: A cross functional team is a team composed of more than three members from diverse functional entities working together towards a common goal. This team will have members...
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...to green issues while others blame cloud computing as burden to environmental problems. Cloud computing, nevertheless, like other technology, is neutral. It can be either cause or solution to environmental issues. There is growing pressure on cloud computing industry to reduce the environmental impacts of their data centres. The current trend focuses on developing green cloud computing. However, the evaluation of solutions to green cloud computing bases on certain standards, metrics and benchmarks, which assess only parts of the environmental issues with cloud computing. This report will concentrate on green issues with cloud computing. Significant positive and negative impacts of cloud computing on the environment issues will be investigated. Next, a classification of green issues with cloud computing also is offered with aims at better understanding of such issues. This report also pays attention to green cloud computing, especially assessing solutions to green cloud computing. It begins with the concept and requirements of green cloud computing. A framework for assessing solutions to green cloud computing is developed based on some relevant metrics, standards, and...
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...Building a stronger, safer BP Who we are BP is one of the world’s leading integrated oil and gas companies.a We aim to create long-term value for shareholders by helping to meet growing demand for energy in a safe and responsible way. We strive to be a world-class operator, a responsible corporate citizen and a good employer. Through our work we provide customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. Our projects and operations help to generate employment, investment and tax revenues in countries and communities around the world. We employ more than 80,000 people, mostly in Europe and the US. As a global group, our interests and activities are held or operated through subsidiaries, branches, joint arrangements or associates established in – and subject to the laws and regulations of – many different jurisdictions. The UK is a centre for trading, legal, finance, research and technology and other business functions. We have well-established operations in Europe, the US, Canada, Russia, South America, Australasia, Asia and parts of Africa. a On the basis of market capitalization, proved reserves and production. Annual Report and Form 20-F 2013 bp.com/annualreport Front cover imagery Our second BP-operated development in Angola consists of four oil fields – Plutão, Saturno, Vénus and Marte (PSVM). Left image: the converted hull...
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...Current trends in maritime shipping today and the latest Issues faced by shipping industry Contents Page Introduction 2 Trends • Containerization 2-3 • Green Logistics 3-4 • Intermodalism 4-6 • Freight rate 6-7 • Tanker (ship) 7-9 Issues • Piracy 10-11 • Pollution 12-13 • Bunker fuel price increase 13-14 • Shortage of container 15-16 ...
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...Sustainability Reporting Guidelines & Oil and Gas Sector Supplement © 2000-2012 GRI Version 3.1/OGSS Final version The Oil and Gas Sector Supplement is based on the G3.1 Sustainability Reporting Guidelines © 2000-2012 GRI Version 3.1/OGSS Final version Oil and Gas Sector Supplement Sustainability Reporting Guidelines RG & OGSS Table of Contents Overview of the Guidance provided in this Document for the Oil and Gas Sector Human Rights Society Product Responsibility 43 47 52 Preface Sustainable Development and the Transparency Imperative General Reporting Notes Data Gathering Report Form and Frequency Assurance 10 Glossary of Terms Acknowledgments 12 12 13 14 54 54 55 56 58 Introduction Introductory Section for the Oil and Gas Sector Overview of Sustainability Reporting The Purpose of a Sustainability Report Orientation to the GRI Reporting Framework Orientation to the GRI Guidelines Applying the Guidelines Part 1 Defining Report Content, Quality, and Boundary Guidance for Defining Report Content Principles for Defining Report Content Principles for Defining Report Quality Guidance for Report Boundary Setting 16 17 22 26 Part 2 Standard Disclosures Strategy and Profile 1. Strategy and Analysis 2. Organizational Profile 3. Report Parameters 4. Governance, Commitments, and Engagement 5. Management Approach and Performance Indicators Economic Environmental Social: Labor Practices and Decent Work 40 29 29 30 30 31 33 34 36 ...
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...Group overview Gulf of Mexico oil spill Exploration and Production Refining and Marketing Other businesses and corporate Liquidity and capital resources Corporate responsibility Research and technology Regulation of the group’s business Certain definitions 123 Additional information for shareholders 124 127 127 128 129 130 133 134 135 135 135 137 137 138 138 139 139 139 140 Critical accounting policies Property, plants and equipment Share ownership Major shareholders and related party transactions Dividends Legal proceedings Relationships with suppliers and contractors Share prices and listings Material contracts Exchange controls Taxation Documents on display Purchases of equity securities by the issuer and affiliated purchasers Fees and charges payable by a holder of ADSs Fees and payments made by the Depositary to the issuer Called-up share capital Administration Annual general meeting Exhibits BP Annual Report and Form 20-F 2010 83 Directors and senior management 84 87 Directors and senior management Directors’ interests 89 Corporate governance 90 105 106 106 107 108 Board performance report Corporate governance practices Code of ethics Controls and procedures Principal accountants’ fees and services Memorandum and Articles of Association 141 Financial statements 142 Consolidated financial statements of the BP group 150 Notes on financial statements 228 Supplementary information on oil and natural gas (unaudited) PC1 Parent company financial statements of BP...
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...A Tutorial on Discounted Cash Flow, Fall 2015 Notes prepared by John Tsagarelis, jtsagare@uwo.ca DRAFT: Comments, Suggestions Welcome 9/20/2015 Preamble As we walk through life we develop mental maps of situational settings. These are not sight patterns, but rather decision patterns among choices available to us in any given circumstance. For example, we take familiar roads to our summer cottage or accept return-on-equity is an unbiased stock return predictor. Once we form a map, it is hard for us to realize it may be incorrect and/or to imagine alternative scenarios. This lack of flexibility in decision making is as dangerous as following maps on our satellite-based navigation devices that fails to account for new roads. We could call this a blind spot, but it is more sinister—it is a false picture of reality. It is for this reason, during creative problem solving and brainstorming sessions groups often strive to suspend judgement until they have entertained ranges of plausible scenarios and responses to them. The initial scenario we envision may be woefully inadequate and our initial responses significantly inferior to others we can imagine. As part of our inherent capacity to memorize, we should always strive to challenge our beliefs through a feedback mechanism. To test our existing constructs with new potentially better ones. It is with this in mind that we explore the classic or naive discounted cash flow modelling techniques. 1 Introduction The...
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...1. INTRODUCTION 1.1 Statement of Problem A study has been conducted in order to understand the Customers and Dealers opinion and satisfaction level of MAK LUBRICANTS In Mumbai, research titled “Potential Study on Lubes in the Bazaar Sector” and its role in building Brand Equity for the company” has been conducted. 1.2 Importance of the Study In this competitive arena Lubricants plays a vital role so the Lubricants Industries are a major source. MAK have to compete with various players like Veedol, Gastrol, Lal Ghoda, Shell, Gulf and the local brands with their stringent rules and regulations. Hence, in order to understand about the customers and dealer requirements their likes and dislikes preference is sine-quo-non-for MAK. 1.3 Objectives ➢ To ascertain the customers preferences of MAK Lubricants. ➢ To ascertain the customers satisfaction level for MAK services. ➢ To analyze the customers opinion and satisfaction with special reference to MAK ➢ To suggest some guidelines to MAK in order to provide better focussed services. ➢ To determine the status of brand awareness and brand loyalty in order to conclude about brand equity. ➢ To learn about the brand attributes and their preferences in MAK. 1.4 Scope of the Study: ➢ This project gives me great exposure to the Lubes market because...
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...countries and territories, Shell plays a key role in helping to meet the world’s growing demand for energy in economically, environmentally and socially responsible ways. Our Exploration & Production business searches for and recovers oil and natural gas around the world. Many of these activities are carried out as joint venture partnerships, often with national oil companies. Our Gas & Power business liquefies natural gas and transports it to customers across the world. Its gas to liquids (GTL) process turns natural gas into cleaner-burning synthetic fuel and other products. It develops wind power to generate electricity and invests in solar power technology. It also licenses our coal gasification technology, a cleaner way of turning coal into chemical feedstocks and energy. Our Oil Sands business, the Athabasca Oil Sands Project, extracts bitumen from oil sands in Alberta, western Canada and converts it to synthetic crude oils. Our Oil Products business makes, moves and sells a range of petroleum-based products around the world for domestic, industrial and transport use. Its Future Fuels and CO2 business unit develops fuels such as biofuels and hydrogen and synthetic fuels made from natural gas (GTL Fuel) and potentially from biomass; and leads company-wide activities on CO2 management. With 46,000 service stations, ours is the world’s largest single-branded fuel retail network. Our Chemicals business produces petrochemicals for industrial customers. They include the raw materials...
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...OIL COMPANY CRISIS Managing Structure, Profitability, and Growth Nick Antill and Robert Arnott Oil Company Crisis Managing structure, profitability and growth NICK ANTILL and ROBERT ARNOTT SP 15 Oxford Institute for Energy Studies 2002 The contents of this paper are the authors’ sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its Members. Copyright © 2003 Oxford Institute for Energy Studies (Registered Charity, No. 286084) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission of the Oxford Institute for Energy Studies. This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s consent in any form of binding or cover other than that in which it is published and without similar conditions including this condition being imposed on the subsequent purchaser. ISBN 1-901795-27-6 Cover designed by Clare Hofmann Typeset by Philip Armstrong, Sheffield Printed by Biddles, Guildford CONTENTS List of Figures Acknowledgements 1 2 INTRODUCTION INDUSTRY STRUCTURE 2.1 An Examination of Corporate Structure 2.2 The Urge to Integrate 2.3 A Question of Balance 2.4 Just how Operationally Integrated? 2.5 Are there...
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...A REPORT OF PROJECT ON FINANCIAL STATEMENT ANALYSIS IN MANGALORE REFINARY AND PETROCHEMICALS LIMITED Under the guidance of Internal Guide Ms.Ramya.R Management and commerce department Amrita School of Arts and Sciences Mysore Extrnal Guide Alpana Dosaj Finance Department Mangalore Refinery and Petrochemicals Limited Mangalore SUBMITTED TO MANAGEMENT AND COMMERCE DEPARTMENT AMRITA SCHOOL OF ARTS AND SCIENCES MYSORE Submitted By: D Ravi Thirumaleshwara Sharma MY.BU.U3BBM09019 BBM 5TH SEM Amrita School of Arts and Sciences Mysore FINANCIAL STATEMENT ANLYSIS OF MRPL Page 1 ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to M/S. ALPANA DOSAJ for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. My deepest thanks to Lecturer, M/S RAMYA. R the Guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I express my thanks to the Principal M/S VIDYA PAI, AMRITA SCHOOL OF ARTS AND SCIENCES, for extending his support. My deep sense of gratitude to Mr. RAMAN TRAINING CHIEF, Mr. JOSE DGM OF TRAINING DEPARTMENT OF MANGALORE REFINERY...
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