Energy Finance Technology: Adopting new ways of working that challenge the old

06 August 2020

The Energy sector today is a constantly changing, evolving and complex landscape.  It is continuously seeking to find an equilibrium in the turbulence of supply and demand, fossil fuels and renewables, and survival and growth.  All of which is underpinned by fierce competition for investment.  

In an ever changing and volatile environment it is imperative that Energy business leaders take a step back and review what is actually important for their businesses. The KPIs that were measured and reviewed six months ago may rapidly be out of date.  

Systems and processes that have been designed in regimes where costs do not need to be closely monitored are not easily able to be adapted to provide new information that is needed. In an environment where the oil price is volatile or low it is vital that costs can be analysed beyond just the surface. To remain lean and cost aware, it is essential that data is available in real time so that it can be reacted to quickly and efficiently. 

The ability to report and analyse costs from Energy operators, such as in E&P as soon as they are billed ensures that accurate costs by well can be captured and analysed. With the ability to track granular data in a simple and real time format, business leaders and key decision makers are able to be informed swiftly and easily of any potential issues. The ability to track and record joint venture billings in real time ensures that any billing queries can be raised with the operator within hours of receiving the bill, ensuring no cash leaves the business unnecessarily and time spent waiting for credits or refunds is reduced or eliminated.  

Cash flow forecasting is an area which has always been difficult for businesses to perform efficiently and effectively in any sector. Energy and E&P follows that trend. The use of real time information coupled with intelligent automation takes some of the pain out of this. This enables key stakeholders to make informed decisions based on accurate and timely information.  

A virtual finance function (VFF) is a bespoke solution designed exactly for these corporate requirements. It is a technology based solution that ensures that processes and procedures are automated and therefore limits paper based and manual intervention processes. This frees up time of experienced staff to focus on running and growing the business.  

Real time information is a key part of the VFF, meaning that stakeholders and key management are able to make informed decisions and provide strategic direction to the business.  

For high growth entities with limited personnel, a VFF solution ensures that all appropriate controls and polices are in place for accelerated development, funding opportunities or a future listing.  

AAB have worked with a number of Energy operators and E&P companies to establish their finance function both in the UK and internationally. AAB’s VFF solution ensures that Energy operators and other businesses are able to concentrate on growing their business, knowing that all operational, finance and compliance needs are met. AAB deploy a specialist team who are dedicated to their client’s  businesses, meaning that they have peace of mind that AAB are the finance team, virtually, remotely but above all, efficiently.    

To discuss the application of AAB’s Energy sector VFF services further, please contact Lauren McIlroy. 

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