IFRS Case Study
Overview of client Our client is a leading Exploration and Production company listed on FTSE 250 on London’s Main Market. Their portfolio extends to 31 assets in 12 countries from Nigeria and São, Ghana, Côte d’Ivoire, Tomé and Príncipe JDZ, Congo Brazzaville, South Africa, Kenya, Ethiopia, Madagascar, Seychelles, Tanzania and more recently to Middle East. The company’s business spans the full-cycle of E&P from exploration to appraisal, development and production. They are focused in areas that represent globally significant and growing sources of international oil supply and high impact exploration fairways.
Background As the company’s business continued to grow, our client required efficient and scalable tools with clearly defined workflows to improve their forecasting. With an increasing number of assets and countries in their portfolio and an ambitious growth plan, problems and potential issues were: •
Many spreadsheets saved by multiple users, with no defined master model;
Corporate planning and economists were working from multiple models with different interpretations of terms;
No clear reporting structure or process existed, so reports were inconsistent and had to be re-created for each reporting process;
Lack of knowledge sharing between different departments;
Lack of ability to look at acquisitions or divestments at a corporate level and not just a stand-alone basis.
Palantir identified PalantirCASH and PalantirFINANCIALS as the ideal software solution to solve the client’s problems adding a consistent solution which could be shared across organisational departments and which would add efficiency to their existing workflow.
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Objectives The client asked Palantir to implement a solution which would: •
Have one consistent set of data to be used for modelling and reporting purposes
Increase knowledge sharing across departments whilst allowing for autonomy where required
Increase the speed of report generation to increase efficiency
Use report templates which are reused to save analysts’ time
Build in methodical processes to forecasting which can scale as the company grows
Allow for the impact of decisions to quickly be measured on both economic and financial indicators
PalantirCASH highlights: •
An extensible solution for economic evaluation and fiscal modelling.
Utilises Microsoft Excel for data entry and reporting
Includes a database for security and standardisation.
Models complex situations with the power of a database for archiving, versioning and reporting.
PalantirFINANCIALS highlights: •
Integrates directly with economics forecasts
Rapidly produces IFRS compliant reports
Links to accounting systems to save time transferring data
Palantir’s Role The client asked Palantir to develop and implement a solution which would enable them to improve efficiency and save man hours by producing forecasts for the economics and financials groups quickly and using the same base data sets. This solution would have to be able to manage the complex fiscal regimes and terms relevant to the countries in their portfolio. With the client, we chose to implement a solution using the PalantirCASH and PalantirFINANCIALS products, which are designed for economic modelling and financial forecasting. The combination of the