Project Finance Petrozuata - 4755 Words

Evaluation of Petrolera Zuata, Petrozuata C.A. Project Finance Case Study 1 Table of Content Petrozuata introduction ....................................................................................................................... 4 1. How should PDVSA finance the development of the Orinoco Basin? What are the costs and benefits of using project finance instead of traditional internal debt finance? ...................... 4 1.1. Project finance scenario (BBB) ................................................................................................. 6 1.2. Corporate finance scenario (BB) ............................................................................................... 6 2. What are Petrozuata’s†¦show more content†¦Moreover, PDVSA is an OPEC member. 1. How should PDVSA finance the development of the Orinoco Basin? What are the costs and benefits of using project finance instead of traditional internal debt finance? Corporate finance department representatives from PDVSA and Conoco decided to finance the project off-balance sheet. In order to assess whether this solution was optimal in the case of Petrozuata, it is essential to consider the advantages and disadvantages of both, financing the project on-balance sheet and off-balance sheet respectively. Project Finance : Table 1 - Advantages Disadvantages Project Finance Advantages  §Ã¯â€š § Preserves debt capacity of the parent company: keeps debt to equity (D/E) ratio low, which enables future investments by parent companies Disadvantages  §Ã¯â€š § Requires a very high level of debt (here 60%)  §Ã¯â€š § Highly risky, due to the high level of debt (1.4 bn)  §Ã¯â€š § Avoids exposure of the parent company to the o debt payments have to be made through project’s risks (e.g. no negative impact on escrow account as soon as cash flows shareholders in case of loss making)  §Ã¯â€š § Limited liability: decreases cost of default occur  §Ã¯â€š § Agency issues: the sponsors may have a 4  §Ã¯â€š § Sponsor agreements: DuPont and Conoco’s involvement promotes project’s success because of given expertise  §Ã¯â€š § Participation of more shareholders different objective  §Ã¯â€š § Extra costs from all the necessary agreements (lawyers, sponsors†¦) allows PDVSA to haveShow MoreRelatedPetrozuata CaseSolutionv31551 Words   |  7 Pagesï » ¿ Petrolera Zuata, Petrozuata C.A. Students: Kausik Ash | Javier Echave | Trang Ho | Sarah Nash | Ayse Zeynep Saka | Raj Sambasivan | 1a Financing of Orinoco Basin The generally understood criterion for using project finance to fund a project and Petrozuata s compliance comparison are as below; Legally independent company = Once the project was completed, Petrozuata would become a stand-alone entity, with the sponsors warranty coming to an end Non-recourse debtRead MoreDebt and Project7455 Words   |  30 PagesGovernance Restructuring Petrolera Zuata Petrozuata C.A. Maastricht University School of Business and Economics Maastricht, 19th September 2012 Driessen, G. (i6060635) Koerselman, W. (i561398) Park, D. (i6051671) International Business – Finance Corporate Governance and Restructuring Course Code: EBC4052 Tutor: Dr. S. Kleimeier Case 2: Petrolera Zuata, Petrozuata C.A. Introduction Petrolera Zuata, hereinafter referred to as Petrozuata, was the first joint venture in a series ofRead MoreProject Finance1543 Words   |  7 Pages1. How should PDVSA finance the development of the Orinoco Basin? Can you define project finance? Is Petrozuata a project? What are the costs and benefits of using project finance instead of the traditional (debt) finance – as Mr. Bustillos said, PDVSA could have finance the debt internally (p.7 of the case)? Project finance is a kind of Financing that has a priority does not depend on the creditworthiness of the sponsors proposing the business idea to launch the project. Approval does not evenRead MoreHutchison Whampoa Ltd1156 Words   |  5 PagesHUTCHISON WHAMPOA S FINANCING STRATEGY PRIOR TO JUNE 1997 A financing strategy is integral to an organization’s strategic plan. It sets out how the organization plans to finance its overall operations to meet its objectives now and in the future. Hutchison, like other large firms in Hong Kong, relied heavily on internally generated funds to fuel growth. Having reserves of 67,994m (more than twiceof operating expenses in 1996), it is stable enough to continue without external funding, indicatingRead MoreHedging Currency Risks at Aifs Case Questions1021 Words   |  5 Pageswould be the range of discount rates that AES would use around the world? 3) Does this make sense as a way to do capital budgeting? 4) How does the adjusted cost of capital for the Pakistan project reflect the probabilities of real events? What does the discount rate adjustment imply about expectations for the project because it is located in PAkistan and not in the US? Bidding on the Yell Group Case Questions: 1) Is Yell a good leveraged buyout candidate? 2) How similar are the UK and US businessesRead MoreHedging Currency Risks at Aifs Case Questions1037 Words   |  5 Pageswould be the range of discount rates that AES would use around the world? 3) Does this make sense as a way to do capital budgeting? 4) How does the adjusted cost of capital for the Pakistan project reflect the probabilities of real events? What does the discount rate adjustment imply about expectations for the project because it is located in PAkistan and not in the US? Bidding on the Yell Group Case Questions: 1) Is Yell a good leveraged buyout candidate? 2) How similar are the UK and US businessesRead MoreCrosswell1474 Words   |  6 PagesBUSINESS AND MANAGEMENT LEN RUSHFIELD MBA 610.63 INTERNATIONAL FINANCE SPRING 2005 WEDNESDAY 6:00 PM – 10:00 PM WESTLAKE VILLAGE CENTER SYLLABUS 1 International Finance MBA 610.63 Westlake Village Center Wednesday 1/5-2/16/05 Len Rushfield (310) 474-5848 (603) 843-9683 (efax) leonard.rushfield@pepperdine.edu/ asiaptner@aol.com Course Objectives MBA 610.63 is intended to provide a foundation of understanding of international finance and the critical options for corporate financial management

Charles Dickens- A tale of Two Cities Violence and Revenge Free Essay Example, 1500 words

xv). The underlying foundation of his work is the commentary that exists about the social issues that are addressed within his work. Wonderful creations of characters are the tools with which he makes his commentary. It is often not about how his characters feel, but in how they manage the circumstances in which they have been thrown. One of the most potent myths of the life of Dickens is that he spent time in a debtors prison with his family at a young age. This myth happens to be supported in history, but is often just as fantastically crafted in story as is the tale of Oliver Twist and Great Expectations, both of which describe a boy at the mercy of adults who have no concern for the child’s needs. After his family became impoverished from the over spending of his father, they moved from a well appointed home into squalor, at which time Dickens went to work in a shoe polish factory where he sealed the jars and glued on the label, a job at which he worked for twelve hours per day (Dailey, 2004, p. We will write a custom essay sample on Charles Dickens- A tale of Two Cities: Violence and Revenge or any topic specifically for you Only $17.96 $11.86/pageorder now 29). This was not unusual during this time period, but Dickens had moved from a middle class lifestyle to a lower class lifestyle and this shift in class and the resentment that he built from his shift in fortune is evident in the stories that he crafted. Debtor’s prison was not abolished until 1869, a year before Charles Dickens died, but his own feelings on the subject comes through in the support of the rise of the lower classes was evident in the way in which relief was sought and often provided for those who suffered under the yoke of poverty. Debtor’s prison was a miserable incarceration in which the male of the family was held in prison until money could be raised to pay the debt that was owed. The rest of the family moved into the prison with the male figure, although they were free to come and go as needed. When Charles Dickens’ father was in prison, Charles continued to work, having sold all of their possessions to try and relieve the family of their debt, but not able to acquire enough money. Dickens had already sold off all his books, a collection that he regretted losing which impacted his love of literature (Dailey, 2004, p. 28). The novel was written to be serialized, a form of book publishing that was not new to Dickens. However, in the style of writing accomplished for the novel, Dickens created something new in the writing of A Tale of Two Cities. The way in which the story was crafted was a different style for Dickens in which he wanted to create a historical novel.

Compare And Contrast The Matrix And Gorilla - 1360 Words

Introduction Visual texts and cinematic screen both skillfully utilize assortment of visual strategies and realistic elements to the audience into the particular stories they tell. Lana and Lily wachowski s 1999 film The Matrix and Anthony Browne s 1983 picture book Gorilla both investigate stories fixated on the preface of various forms of reality. While the Matrix looks at people s impression of truth and reality and confused decisions, they confront when gone up against by these truths, gorilla, investigates the other substances people build to pick up love when confronted with isolation, separation and neglect. Both content use a wide bunch of true to life highlights and visual methods to catch the audience the separate stories†¦show more content†¦In addition the effective use of dark colours such as green, black and brown plays a huge part in portraying the danger and confusion that takes part throughout the film representing death and the unknown. 2nd Paragraph The film Correspondingly investigates the choice,fate and free will through Neo s adventure and eagerness to discover answers One of the most critical parts in the film thatShow MoreRelatedMobile Technology Has Come A Very Long Way1452 Words   |  6 Pagesphones on the market today are the Samsung Galaxy and the Apple iPhone. This paper focuses on two of the newest models offered by Samsung and Apple, the Galaxy S6 and the iPhone 6. The goal is to break down some of the more popular features and compare the two side-by-side to aid the tech-savvy (and not so tech-savvy) individuals with making a choice that is the best for them. PRICE / STORAGE One of the biggest determinations in choosing a new phone is always the price. The table below has aRead MoreNestle vs Cadbury5506 Words   |  23 Pages27 CADBURY’S DISTRIBUTION 29 NESTLE’S BCG MATRIX 30 CADBURY’S BCG MATRIX 31 CONCLUSION 32 BIBLIOGRAPHY 33 OBJECTIVES OF THE STUDY 1. To get familiar with the marketing strategies of Nestle and Cadbury separately 2. To view the segments being targeted by these brands in the market 3. To study and compare the promotion and pricing strategies of these brands 4. To compare the product portfolios of both the companies using BCG Matrix THE INDUSTRY SCENARIO With the entry of multinationalsRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages480 Work Specialization 480 †¢ Departmentalization 482 †¢ Chain of Command 483 †¢ Span of Control 484 †¢ Centralization and Decentralization 485 †¢ Formalization 486 Common Organizational Designs 486 The Simple Structure 486 †¢ The Bureaucracy 487 †¢ The Matrix Structure 488 New Design Options 490 The Virtual Organization 490 †¢ The Boundaryless Organization 492 †¢ The Leaner Organization: Downsizing 494 Why Do Structures Differ? 496 Organizational Strategy 496 †¢ Organization Size 498 †¢ Technology 498 †¢ Environment

Communication Challenges to Modern Day Business free essay sample

Communication is defined as the process of transferring information and meaning between senders and receivers, using one or more written, oral, visual or electronic channels. Simply put, communication is the exchange of information between people. It is important to get feedback from your audience and vice versa for the process of communication to take place effectively. The feedback can be either positive or negative. It is any communication used in an organization with an intention to promote a product, improve service or with the intention to make a sale.This type of communication also occurs within the organization between the management and employees. It has purpose and a lot of attention is given to the details. Business communication has undergone a lot of transformation as a result of the growth of information technology that has changed the whole concept of communication. In the past, businesses had a model of communication that left very little room for interaction and conversation with the receiver of the message. We will write a custom essay sample on Communication Challenges to Modern Day Business or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Currently the model that works and is now used by most organisations is one that gives room to both conversation and interaction with the receivers.Communication is very vital in any organization. Like blood in our bodies, it is the channel that gives life to the organisation and without it, organisations would not be functional. Effective communication plays a significant role in the success of the business, as communication works to send information, control behavior and motivate workers. Today there are many more ways to communicate than there were just a few years ago and access to communication devices is almost universal in most businesses. Good communication means the intended message that is send is received by a group of audience without any distortions in meaning.This definition applies to not only personal communication among friends or relatives, but to business situations where you may be communicating with a co-worker one-on-one or in a meeting with several or more people. The key here is clarity Communication is also almost instantaneous. Good business communication is simple and easily understood, a rule often overlooked by managers and team members. This is especially important when preparing a document, speech or presentation that is a game-changer for the company. Simple and concise language wins over language that is obtuse and hard to understand.Business communication defines most organizations, resulting in effective marketing campaigns, productive interpersonal relationships among co-workers and successful customer service resolutions. Since audiences demand different kinds of communications in different situations and settings, effective business communication professionals understand how to tailor messages for maximum results. Several communication challenges exist within day-to-day business operations, especially with technology. Technology benefits organizational communication by lifting communication restrictions caused by time and distance.At the same time, the removal of time and distance as communication factors has led to the challenges of information overload and constant accessibility. The issue of constant accessibility has led to blurring of the lines between personal and professional lives. There are several barriers: Emotion serves as an obstacle to effective communication, as emotion can interfere with making rational decisions. Differences in culture can be a communication challenge for international businesses. Not understanding the language and customs of other cultures can lead to poor sales and public relation disasters.There are a number of recognised barriers in the modern day communication, many of which go unnoticed, that can and do effect the standards of communication a person feels comfortable with. Physical barriers are often down to the nature of the environment in which communication may take place but are not always interpreted by the recipient in the correct manor. For example an office door being closed could signify to a co-worker that someone does not want to be bothered, or is possibly in a bad mood, whereas the occupant of the office cou ld have possibly closed the door due to a breeze or didnt close the door them self at all. This is an example of misinterpretation of actions brought about by the physical barrier of the door. Barriers like this can often present the risk of a ripple effect; in that the barrier in this situation could damage the recipients’ perception of the source by making the recipient feel outcast or shut out by the inhabitant of the office, which would set up the standings of a bad communicative relationship. Issues in communication can be disturbed when the basic mechanics of the communication method are damaged directly.