How Kyriba Helps the Oil and Gas Industry

 
Treasury requirements in the oil and gas industries
Kyriba works with a number of clients in the oil and natural gas industry. Our clients’ expertise ranges from production equipment manufacturing, to exploration and extraction, to pipeline transportation. While no two companies have exactly the same needs and requirements, many of our clients in the sector share one or more of these cash and treasury requirements:

Cash Forecasting – Increasing forecasting horizons and improving accuracy is a key requirement. With margins often tight, it is increasingly important to minimize idle cash and optimize cash returns. Kyriba consolidates forecast data and measures forecast accuracy to increase confidence in your cash projections.

Debt and interest rate hedging – Higher debt loads are common in the industry, so managing interest rates and enabling effective interest rate hedging programs is key for the treasurer. Kyriba supports debt and interest rate derivative position keeping, automated mark to market, and delivers regulatory compliance including hedge accounting support.

Multiple business entities – Kyriba’s oil and gas clients commonly have multiple subsidiaries and lines of business across the globe, often in emerging markets with limited banking infrastructure. This drives cash pooling, netting, in-house banking, and intercompany requirements. Kyriba fully supports multi-entity businesses, offering positioning, forecasting, accounting, payments, financing, and risk management for parent and subsidiary treasury management.

Efficiency and productivity – As with other industries, CFOs and treasurers are focused on improving the efficiency and productivity of the treasury function. From optimizing bank accounts, to bank relationship management, and through automation of manual tasks to improve operational controls, Kyriba delivers productivity to the financial team enabling less time spent on treasury and more time allocated to business intelligence and strategic insight.

One example of a challenge faced by one of Kyriba’s clients within the oil and gas industry, as well as how Kyriba addressed the challenge, is outlined below:

Challenge
As a result of the many governmental regulations in place, the company was required to adhere to several stringent accounting and financial processes. Specifically, it needed improved controls to provide increased visibility, from cash visibility to inter-company loan updates and bank account management. To satisfy these particular needs, the company had a number of requirements: it was looking for a webbased solution that would provide payment, cash forecasting, along with electronic banking processes, such as bank account management and in-house banking (for intercompany loans) capabilities. In addition, the organization wanted to instill best practices that would allow the treasury team to be a more efficient and analytical partner to the business.