Medium Term Capital Structure Targeting and Financial Planning

AWR Lloyd worked with a listed Asian energy group to develop a medium term financial planning model. The group had a complex portfolio of intermediary holding companies and businesses in different countries. We modeled the cash flows, debt schedules and intra-group flows and loans to establish funding requirements and possible excess or under-gearing outcomes. In one year the company had high gearing but wanted to execute a large (multi-billion dollar) cash acquisition. AWR Lloyd advised on maximum gearing potential, divestment strategies and equity capital raising schemes to facilitate the acquisition.

Group Corporate Structure Strategy

AWR Lloyd advised a listed Asian energy client on a combined group restructuring strategy involving share buy-backs, a rights and warrant issue and a subsidiary spin-off listing over a period of approximately eighteen months. The client’s share price increased around 50% during the period compared to the local stock market index which increased around 30%.

Multi-year strategy consulting assignment – small Southeast Asian conglomerate to multi-billion dollar Asia-Pacific energy player

In 2000, AWR Lloyd started working for a small Southeast Asian conglomerate. The company had suffered during the ‘Asian economic crisis’ and was looking to reinvent itself going forward.

The company was involved in a number of different businesses with few synergies: a goods port, power projects, a chemicals investment, industrial minerals mines and some coal mines. Based on a review of the client’s core skills and competitive advantages – and an analysis of the regional energy and mining industry outlook – AWR Lloyd advised the company to focus on developing a regional coal-based energy business. AWR Lloyd advised the company to divest its ‘non-core’ businesses and to reinvest the proceeds in acquiring coalmines and coal-fired power throughout the Asia-Pacific region.

Since 2000, the client has pursued this strategy successfully with AWR Lloyd as its core in-house advisor. The client’s market capitalization has increased from around US$75 million to several billion dollars in recent years. The group has become the Asia-Pacific region’s most geographically diversified coalminer with output of over 45 million tonnes per annum. The group has a power portfolio including both coal-fired power and solar throughout Asia-Pacific – and is now investing in upstream oil and gas and smart energy.

AWR Lloyd’s work with this client over the past seventeen years has included the full spectrum of corporate finance strategy consulting services including share price and valuation analysis, growth and M&A strategy, business development SOPs, medium and long term financial planning, stock market and investor communication strategy, market signals analyses and takeover contingency planning. In the area of investor relations, AWR Lloyd has helped the client implement a best practice IR programme such that the company is now viewed by Finance Asia, Asia Money and other ranking agencies as having one of the leading IR programmes in Asia. The client was ranked as one of ‘Asia’s Fab 50’ by Forbes magazine in 2010.

Oil Procurement Strategy

AWR Lloyd advised mining and power companies in relation to oil procurement and hedging strategies in Thailand, Laos and Indonesia.

Rock Cavern Oil Storage Feasibility Studies

AWR Lloyd advised a joint venture between PetroVietnam and a Korean consortium in relation to two underground rock cavern oil storage projects in Dung Quat and Nghi Son.

Tank Farm and Terminal Project FS & Corporate Finance Advisory

AWR Lloyd has been advisor to a Thai tank farm and terminal with over 300,000 cbm capacity since 2003. We have helped the firm negotiate long term contracts with Thai refiners and international oil trading companies. We have also assisted the company in its negotiations with potential acquirers and have advised on the feasibility of expansion of the operation.

Tank Farm and Terminal Project FS & Corporate Finance Advisory

In Vietnam, AWR Lloyd has conducted a number of feasibility studies and provided financial advisory services in relation to oil terminal and storage projects in Can Tho, Cai Mep, Long Son, Dung Quat and Nghi Son.

LNG Market Entry Advisory

AWR Lloyd advised three Singaporean incumbents on the strategic and commercial impact on their business of the entry of LNG into the Singaporean market.

Gas Market Policy and Regulations

AWR Lloyd advised the Thai government on domestic gas policy to help reform the industry.

LNG Market Study

A Thailand LNG market study was conducted for Woodside to assess market credit risks and help them position themselves for LNG sales in Thailand.

Gas Supply Agreement Negotiation

AWR Lloyd was retained by a US oil major to undertake negotiations with PTTEP regarding a 20-year gas supply agreement after assessing the gas and power sector in Thailand. A Thailand LNG market study was conducted for an Asia-Pacific oil and gas group to assess market credit risks and help them position themselves for LNG sales in Thailand. Our team advised the Thai government on domestic gas policy to help reform the industry.

LNG Strategic Options

In Vietnam, AWR Lloyd conducted a study for PV Gas, the state-owned monopoly, regarding LNG opportunities in the country.