CORPORATE FINANCIAL MANAGEMENT

CORPORATE FINANCIAL MANAGEMENT



Corporate Financial Management

Introduction

The issue of performance is often the subject of several interesting debates. Indeed, in the 1950s, was meant by performance measurement in which an organization as a social system was meeting its objectives (Georgopoulos and Tannenbaum, 1957). During the years 1960 and 1970, Yuchtman and Seashore (1967) defined performance as the ability of an organization to exploit its environment to access scarce resources. During the years 1980 and 2000, the constructivist thinking has gained ground in the field of organizational theory and it was recognized that the identification of goals was a more complex task than was first thought.When measuring the performance of an organization must take into account the perceptions of various constituencies or stakeholders, including those who work (Eisenberg, 2006, 339)

In other words, the concept of organizational performance is, at least in part on the individual. The influence or power of different stakeholders determines the dominant message in terms of performance. And face a range of indicators, dimensions and models reflecting different analytic approaches, companies are displayed according to a principle of operation on their own. In addition, as stated by March and Sutton (2007), "Explaining variation in the performance or effectiveness is one of the most enduring themes in the study of organizational performance." It is perceived as a constraint where control is difficult or even impossible, since any decision carries financial implications. Despite these challenges, companies have resorted to all sorts of means to identify their purpose, goals and systems that allow them to better juggle their effectiveness (performance).

Moreover, in the petroleum research centers, researchers could determine or define performance in terms of number of oilfield discovered while senior managers may define the same performance as the amount of financial resources obtained by that company (Eun, 2008, 102). 

Financial performance

The 2009 capital program was subsequently delivered below original budget expectation and a successful refinancing exercise was undertaken around the Bow Valley acquisition. This was supplemented by a modest and well-supported share placing and meant the key priorities for the year were firmly achieved. Dana closed the year with net bank debt of USD 40 million and headroom of USD 360 million in a new three year revolving credit facility,

Some production underperformance from certain assets within the portfolio, together with the low oil and gas price environment for much of 2009 and a number of unsuccessful exploration wells, served to depress the Group's financial performance relative to previous years.

Revenue

Annualized average, working interest production for the year was 38,653 boepd (2008: 39,365 boepd), with 78% delivered from Europe (2008: 71%). Liquids accounted for 81% of total production (2008: 74%) with 19% from gas (2008: 26%)

The Group realised an average price of $60.57 per barrel of crude sold during the year (2008: $94.39 per bbl) and a gas price of 31.3p per therm (2008: 46.5p per therm). This compares to the average Brent price in the period of $61.67 per bbl (2008: $98.90 per bbl) and an average NBP price of 30.8p per therm (2008: ...