Energy & Utilities

Pre-built solutions designed specifically for the Energy sector.

M-Power’s team of consultants across Australia harness deep industry knowledge and practical implementation experience to help Energy and Utilities organisations deliver more effective information management solutions.  Our pre built, industry specific, Xcelerate solutions cover all aspects of an Energy and Utilities budgeting, forecasting, reporting and data analytics requirements to deliver quicker, better, cheaper solutions and drive business improvements.

M-Power’s Xcelerate solutions capture decades of implementation experience in the Energy sector giving you the ability to do the following:

Joint Venture Reporting

Managing the dual sets of books required at both the Joint Venture (JV) or 100% view as well the ‘our share’ view is a challenge for all Energy organisations.  M-Power’s Joint Venture Reporting solution has been designed to simplify these processes, our solution enables you to:

  • Report and analyse at the click of a button both the JV and our share views across Actual, Budget and Forecast data. This pervades financial data as well as production and sales volumes
  • Generate your Budget / Forecast by:
    • Capturing the relevant values at the JV or 100% view
    • Applying the ownership %’s for each of the joint ventures to derive your share
    • Layering on top of this your corporate values (eg. Tax)
    • Derive as a result your consolidated Budget / Forecast result

Cost Allocations

Managing complex allocation of corporate costs to joint ventures is a common requirement for Energy organisations. Achieving this in a transparent way with the ability for all partners to drill into the detail of those allocations is challenging for all.  M-Power’s Cost Allocations Module provides a powerful modelling platform to build complex allocation processes in a transparent and flexible way.  Our solution gives you the ability to:

  • Add integrity, transparency and auditability to Budget and Forecast with options to extend across Actual data including variance analysis
  • Apply multiple different driver based allocation approaches
  • Facilitate multi step allocation processes
  • Drive improved accountability

A key implementation process step is to review, challenge and simplify the relevant allocation model.

Depreciation, Depletion and Amortization (DD&A)

For Energy organisations, Depreciation, Depletion and Amortization are amongst the largest expense items in the P&L. Accounting standards require in most cases a units of production method to derive this cost which is beyond the sweet spot of most asset registers. Organisations therefore reluctantly still rely on multiple spreadsheets coupled with manual processes to determine the Actual and Budget values.

M-Power’s pre-built DD&A solution changes that.  It allows you to derive DD&A values using the units of production method, the prebuilt logic includes:

  • For each asset calculate monthly production as a percentage of reserves
  • Include integration to production and reserves systems
  • Deliver the flexibility to make adjustments as needed in a transparent and secure way with commentary to explain the reasons why
  • Consistent approach across all of your assets
  • The ability for the approach to be applied to Budget, Forecast and Actual data

Revenue Planning

Revenue is (we hope!) the largest and most important value in your P&L. Typical challenges are a lack of transparency and visibility into the make up of Budget values to support the inevitable sensitivity questions as well as deeper insight into variances split between FX, Price and Volume.

Our Energy industry solution has Revenue Planning at its heart including volumes, benchmark prices and exchange rates. Key aspects of our solution are as follows:

  • Crude Oil, Condensate, Gas, Ethane, LPG and LNG
  • Asset specific pricing differentials to the benchmark pricing
  • Flexibility to incorporate offtake contracts with specific pricing
  • Sensitivities and/or scenario modelling
  • Linkage to Royalty and tolls/tariffs

Currency

Multicurrency is a key factor in the Energy sector in analysing performance as well as preparation of Budget/Forecast. Current challenges are accessibility to reliable and consistent data in AUD and USD. Key aspects of our currency solution include:

  • For Actual data
    • Leverage the functional currency values in your ledger
    • Extend as needed to derive Presentation Currency including Financial Currency Translation Reserve (FCTR)
  • For Budget / Forecast preparation
    • Flexibility to plan relevant costs in local currency and convert to presentation currency
    • Sensitivities and / or Scenario modelling
    • For Variance analysis delineate the FX related component

Capex Planning

Our pre-built Capex Planning module covers your planning requirements from project conception through to approval and execution phases providing a single reference point for budget, forecast and subsequent reporting of actual versus plan throughout the life cycle of the project.

  • Controlled approach to creating new projects for budget purposes
  • Various reporting classifications e.g. sustaining vs improving
  • One click to include or exclude specific projects in the Budget
  • Model exploration projects with related accounting treatment
  • Workflow to manage approvals
  • Automated integration with your ERP and project control systems for Actual data
  • Depreciation calculations for new capital expenditure and existing assets as needed
  • Dashboard and Analytic reporting capabilities allow you to analyse the risk profile and return on investment of capital work driving improvement in the planning process

Financials

This module delivers integrated and balanced Income Statement, Balance Sheet and Cash Flow outputs along with financial analytics for Actual and Plan data.

  • For Actual – the Financials Module leverages the data in your General Ledger to develop Income Statement and Balance Sheet outputs with drill down to the detail. Cash Flow is derived based on these building blocks.
  • For Plan – the Financials Module derives Income Statement, Balance Sheet and Cash Flow outputs consistent with the approach taken for Actual.
  • The Income Statement brings together all the detailed operating costs, project revenue and expenditure, workforce costs and depreciation into a single module
  • The Financials Module includes finance analytics which extend the standard month end reporting capabilities to include visually stunning dashboards and interactive trending and analytical capabilities to dive deeper into your results, develop new insights and make better business decisions.

Workforce Planning

Integrates easily with your existing HR solution to give you the ability to follow a standard workforce planning cycle: analyse workforce, forecast needs, analyse gaps, develop and implement strategies and then monitor and evaluate.

  • Plan by employee, position or award to deliver a complete personnel planning solution
  • Reference assumptions to derive and manage total cost of employment including Award increases, annual grade / step increases, on costs and allowances
  • Manage current staff, new hires, promotions and parental/sabbatical leave
  • Automated integration with your HR system to source employee data
  • Provides an additional security layer to ensure sensitive salary data is protected
  • Includes workforce analytics, reporting, ad hoc analysis and visually stunning dashboards that provide profile and statistics of your workforce, analysis of turnover, absences and liabilities assisting you to better manage your culture and bottom line
  • Mobile enabled, users can plan, review and analyse on their mobile devices

Petroleum Resource Rent Tax (PRRT)

Compliance with PRRT regulations in a transparent and visible manner is a very significant challenge in part due to the reliance on Excel models. Our Hyperion based PRRT solution provides a system based alternative to Excel which includes features like:

  • Restate your Revenue and Expenses based on what’s taxable/deductible from a PRRT perspective
  • Classification of Exploration spend project by project to define deductibility for PRRT or not
  • Management of carry forward expenditure by quarter
  • Automated identification of excess exploration spend for transfer according to ATO rules by company and by JV
  • Derivation of the Exploration transfer note and ATO tax return

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