Abstract
The article focuses on the issues of investment potential of petrochemical companies and the need to develop a unified approach transparent for all the participants, to assess the efficiency of investment projects in petrochemical companies. The proposed methodology is to be applied to scheduling project costs and in fact, to ground the establishment of annual financing limits for a project. Additionally, the methodology is expected to reflect the possibility of updating the main indicators, both for financing the purchase of domestic and imported equipment. The methodology also takes into account the mechanism of contract pricing, recalculation of the cost of works and services is performed according to the rules and regulations approved for the estimates in any petrochemical company, inclusive of the indices of changes in current estimated cost to base period prices. The proposed methodology for assessing the performance indicators of investment projects is one of the most multi-faceted and optimal tools for petrochemical companies for attracting additional funding from both their own and other sources. In the conditions of growing business volumes, and in case of complying with the recommendations of the state strategy for the industry growth until 2030, the proposed methodology is transparent and relevant to all the investment participants in terms of cash flow generation for the project.
Highlights
Relevance of the Research Topic Russia is one of the leading oil and gas producers, its share of petrochemical production accounts for only 2% of the world total
Russian petrochemical production falls behind global leaders - China, the United States and Saudi Arabia by 5–8 times [1]
The development of the petrochemical industry is fully represented in the document “The Strategy for the development of the chemical and petrochemical complex until 2030”, which determines the future priorities and target indicators of the petrochemical industry [2]
Summary
Relevance of the Research Topic Russia is one of the leading oil and gas producers, its share of petrochemical production accounts for only 2% of the world total. It is recommended to use the following key performance indicators of the projects in petrochemical companies: NPV (Net Present Value); IRR (Internal Rate of Return); project payback period (non-discounted / discounted). The remaining balance establishes the baseline for capital expenditures for the construction project (in current prices for the time of making decision on project implementation) For this purpose, the indices of changes in the current estimated cost to base prices, approved by regional pricing centres are applied. When working out the preliminary scheduled plan for project financing, the costs from the summary cost estimate of construction, in current prices, are distributed by types and quarters of the current year, with the exception of works performed by the production unit itself. The volume of investments in current prices is determined by analogues or through consolidated cost indices
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