Assessment of the impact of investment strategy for the value of an oil company

Abstract

The article analyzes the investment activities of PJSC JSOC Bashneft and formulates the following options for the investment strategy, which differ in the volume and segment orientation of investments: «supporting», «conservative» and «extensive». A forecast of financial indicators and cash flows in the implementation of each of the strategies was made, taking into account three scenarios of changes in the oil price as a key factor affecting the amount of revenue, on the basis of which the cost was estimated for nine combinations of Strategy / Oil price. Comparison of the calculation results showed that the most effective in terms of ensuring the growth of the company’s value is to maintain the existing intensity of investment activities.

Keywords

• investment strategy
• investment activity
• value of the company
• cash flows