Blog

We share our latest thinking and discuss current topics in project finance. We welcome your contribution – feel free to comment online or contact the blogger with your comments.

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Navigator is hiring a wave of analysts

By Nick Crawley on August 13 2009

Using Excel to calculate NPV

By Nick Crawley on August 12 2009 | 1 comment One of the most common questions I am asked in forums which I contribute to, am emailed about, quizzed in conferences and when speaking to training course participants is regarding the risks involved in calculating an NPV using Excel and my preferred calculation method (which is from first principles, easy answer!)... Read more

6 ways to avoid Very BAd VBA

By Nick Crawley on July 23 2009 | No comments I should say before you read this that I am not a professional programmer, I never wanted to be one and to write good VBA you do not need to be one!... Read more

Building actual data into a financial model

By Nick Crawley on July 15 2009 | No comments Updating a typical project finance model for real life information generally causes a lot frustration on the part of modellers, bankers, sponsors and auditors alike. Click here to see a free tutorial on how to do it properly.... Read more

Modelling pre-operational cashflows

By Nick Crawley on July 3 2009 | No comments I am regularly asked by sponsors to include what would be considered ‘pre-operational cashflows’ (pre-commissioning).... Read more

“Accountants” - read before building your next PF model!

By Nick Crawley on June 30 2009 | No comments I should caveat that by saying “Accountants..please stop building Project Finance models unless you have a great working knowledge of cash based lending.” It is a truthful observation and I don’t have a fix for it but focussing on the cashflow rather than the P&L or Balance Sheet (both of which need to be modelled but don’t service debt) will result in a far better model for a non-recourse debt analysis.... Read more

Why are dividends lower when constrained by NPAT?

By Nick Crawley on June 22 2009 | No comments In many countries the calculation of dividends is not simply the payout of any free cashflow left over after the repayment of debt service and reserve accounts, it is restricted to be the smaller of the freecashflow and either the Net Accounting Profit in the Period or also to include the Retained Earnings brought forward in the period.... Read more

Test your financial model auditors!

By Nick Crawley on June 16 2009 | No comments On most project finance transactions the financial model needs to be audited. If blue chip organisations are involved this is an unavoidable measure, in the equity markets where standards of due diligence are generally lower (no offence!) this happens less often. After you have been in this market long enough you build up repository of memories of occasions when everybody, especially the auditors, would prefer not to perform an audit - these are unfortunately the ones when an audit is really needed. We have all been there and boy wasn’t it painful, frustrating and expensive!... Read more

Financial modelling training - do your research!

By Nick Crawley on June 12 2009 | No comments I have recently seen a flyer promoting a course called “Financial Modelling Masterclass” which looks like a pretty good financial modelling course. I might say that its quite broad but if you are new to modelling this looks like a very comprehensive introduction to the subject matter. Having said that it is over a brain busting 5 days and fairly expensive at a whopping $8,200 (inc GST)…ouch!... Read more

We like making a modeller’s life easier!

By Nick Crawley on June 10 2009 | No comments As you can tell we love to at least try to improve the generally tough life of a project finance transaction modeller. We started off by publishing FREE 2 page tutorials and now the latest improvements make this knowledge more accessable.... Read more

Average DSCR - think twice!

By Nick Crawley on June 9 2009 | No comments Ok so if you are in Project Finance you have probably calculated and analysed your fair share of average DSCR’s. If you take the average of a row of DSCR’s have a think if this is what you actually mean, its not wrong but you need to be aware of its limitations because it doesn’t work particuarly well when dealing with exotic cashflows or repayments.... Read more