Planning of financial and business activity Print version
In accordance with changing-over of the state budget formation to a 3Y cycle and within the frames of improvement of the corporate business planning, the Company developed a standard for the system of scenario planning of financial and economic activity of OAO TATNEFT for a 3Y period.
The standard determines the procedure of formation — on the basis of the Company development strategy — of a 3Y forecast for financial and economic activity of OAO Tatneft depending on price trends on the oil market.
Main objectives of the standard:
- formation of a forecast for financial and economic activity, investment program, and budget of OAO TATNEFT for three years and ensuring predictability of the Company development for the medium-term outlook;predictability of the Company development for the mediumterm outlook;
- increase in the accuracy of forecasting due to development of scenario options of economic situation development;
- regulation of the expenses balancing mechanism depending on expected profit and priorities of the Company’s social-and-economic policy for the planned period.
Scenario planning regulates distribution of additional sources of funds — in case of a favorable scenario, and compensation of the budget deficit — in case of worsening of economic conditions. Selection of one of the scenarios is performed on the basis of the output realization price level.
Main areas of distribution or sequestering of the sources are determined in acc. with priorities of the Company's development.
Scenario planning conserves current planning tools of the Company — Cost Savings Fund and Internal Refunding Source.
The scenario planning system is based on formation of a basic forecast for financial and economic activity, developed using conservative approach to selection of the source macroeconomic conditions (unfavorable) and minimization of corporate expenses.
Basic conditions for the 3Y planning of OAO TATNEFT are formed on the basis of:
- macroeconomic parameters of the economy development for the planned period, accepted by the Ministry of Economic Development of the Russian Federation and Ministry of Finance of the Russian Federation;
- program for stabilization of oil production.
Macroeconomic parameters and conditions of forming a forecast for financial and economic activity of OAO Tatneft
The scenario principle of planning allows regulation of the basic forecast expenses level depending on changing prices on the oil and gas market due to regulated distribution of additional sources in case of a more favorable scenario and compensation of the budget deficit in case of unfavorable conditions.
At further planning, previously approved forecast evaluations for the financial and economic activity of the second and third years of the 3Y period are corrected due to changing macroeconomic indicators and priorities of the Company development and become a base for the next 3Y period with annual addition of the forecast evaluation of the next third year to them.
Scheme of the 3Y cycle of forming forecasts for financial and economic activity of OAO TATNEFT
The sequence of planning stages is reflected in the network schedule, which is an integral part of the standard.
Sources of auxiliary incomes in addition to the basic forecast
The standard for formation of a forecast for the financial-and-economic activity for 3Y period became effective from the January 1 , 2008.