Diesel Procurement Study

AWR Lloyd conducted an asset due diligence review for a Chinese client – and a diesel procurement study for a mining company.

Oil Refining Peer Benchmarking Analysis

AWR Lloyd conducted a detailed historical analysis of return on invested capital (ROIC) in the oil trading, marketing and distribution, storage and terminals, E&P and olefins sectors amongst peer listed companies for an Asian oil and gas group. The study looked at three, five and ten year periods and divided the peer analysis in quartiles. The analysis was then compared to cost of capital thresholds to assess value-creation metrics. The objective was to study the client’s relative performance and to see what it could learn from the best performers and the worst performers in each area.

Steel Sector Market Study

A large Japanese trading group hired AWR Lloyd to provide a focused analysis of a Thai steel company in the context of the Thai steel sector more generally. The client was considering acquiring a power plant which would provide electricity to the steel company and was concerned about its creditworthiness. AWR Lloyd analyzed the financial strength of the Thai steel company, provided a financial projection model, assessed the company’s competitive advantages and future feedstock and off-take dynamics. AWR Lloyd also provided an analysis of the corporate control structure, value chain economics and demand of the Thai steel sector as a whole with medium term forecasts.

Rock Cavern Feasibility Study and Funding Strategy

AWR Lloyd provided financial and economic feasibility studies for two underground rock cavern oil storage projects in Vietnam for a joint venture including Vietnamese and Korean companies. The first project involved strategic reserves caverns for a new refinery project (storage for crude oil, diesel and base gasoline) and for a new petrochemical project (storage for naptha and LPG). The second project involves storage to support an existing refinery.

The economics of underground storage are not commonly well known in the oil industry and so AWR Lloyd worked closely with the engineering consultants appointed and with the client to develop some of the key assumptions.

AWR Lloyd’s reports have been used to assess the feasibility of the projects. They have also been used to support tariff negotiations. AWR Lloyd has also been asked to assist in these negotiations.

Power Business Masterplan Advisory

In Malaysia AWR Lloyd advised PETRONAS on the development of their overall global power business masterplan as well as acting as market advisor on the acquisition of a stake in GMR Energy

Oil Refinery and Pipeline Project Feasibility Study

AWR Lloyd conducted a feasibility work relating to the ‘Landbridge’ oil refinery and pipeline project in Southern Thailand (in conjunction with Royal Haskoning).

300,000 bpd Oil Refinery Pre-Feasibility Study

AWR Lloyd conducted an in-depth investment and feasibility study for a Korean consortium in relation to a 300,000 bpd refinery project in in Van Phong, Central Vietnam

Refinery, Oil Pipeline and Oil Storage Feasibility Study

AWR Lloyd was appointed to advise in relation to a major infrastructure project in the south of Thailand involving both energy and non-energy components.

The core aspect of the project was an oil pipeline with oil storage and a refinery – but an industrial estate, an aluminium smelter and other industries were also being considered. AWR Lloyd provided a comprehensive analysis of demand potential for all aspects of the infrastructure project.

LNG Venture Strategy

When a Southeast Asian gas utility was reviewing development of a receiving terminal and importation of LNG, AWR Lloyd was asked to undertake a review of supply options, tariff options for the terminal and pipelines and forecast the end user domestic gas price.

The study reviewed the current status of the LNG market, supply options for contracts commencing between 2015-2020, likely pricing, a review of key contracting terms, shipping considerations, a model of the receiving terminal and a determination of tariffs along each link of the onshore value chain culminating in an outlook for retail prices.

US$0.5 Billion Coalmine Acquisition Advisory

AWR Lloyd advised a major Asian mining group on a US$420 million acquisition of a Chinese coal-mining business with two main assets – one operating underground mine and one mine under development. AWR Lloyd advised on valuation, supervised detailed due diligence and supported negotiations, deal-structuring and post-deal communication to the public and investment community. The mines produce high CV coal for the fertilizer, power and PCI steel sectors in China. The transaction has been very value-creating for the client. One of the assets was sold three years later for US$675 million while the other is currently valued at over US$1 billion.

Equity Raising for Downstream Energy Venture

AWR Lloyd advised a Hong-Kong based oil and coal terminal venture on a $200 million capital raising and advised the venture on the acquisition oil tank farms and terminals in Thailand, Vietnam and Indonesia.

Restructuring Advisory

After conducting extensive valuation work, strategic consulting work and medium term financial planning for a Southeast Asian energy client, AWR Lloyd advised on potential non-core divestments, unbundling and spin-off scenarios as well as alternative financial restructuring strategies. The client is currently considering the options for further action.