| Lomakina Daria Alexandrovna
Financial manegment in oil&gas companies with international operations
ID number: J202115
Abstract: Companies with international operations on the oil&gas market have quite a specific management towards raw materials and semi-finished goods. This means that oil&gas companies tend to hedge their losses by using futures and options for crude oil or gas. Sometimes fixing the price at a certain level may suddenly lead to losses due to overestimation of oil prices for a certain period, but 99% of cases such losses are adjusted for potential losses that could have been made due to sone unfavorable events. Thus, Gazprom Neft PJSC had hedged millions in futures during COVID-19 March-May period. If not this risk adverse tool, losses for Gazprom Neft would have been much higher and lead to debt overweight, personnel cutting, negative revenues and even (the worst-case scenario) bankruptcy.
Key-words: oil&gas industry, Gazprom Neft, NPV, Covid-19, lead–lag relationship, Crude oil, futures, options, Real Options Valuation, WTI, Brent, Optimization
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