Sensitivity analysis of the fertilizer industry

Type :

Research papers

Pages :

71 pages

Format :

.doc

Published date :

05/21/2009

Category :

Business & market

Sub category :

Business strategy

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Summary :

Introduction to fertilizer industry
The basic understanding of crude oil
1. What is energy?
2. World's major sources of energy
3. What is crude oil?
4. Types of crude oil
Primary energy consumption in India
An overview of crude oil producing regions
1. Oil Producing and Exporting Countries (OPEC)
2. Refining process
3. Demand and supply sides of crude oil
Factors impacting movement of international crude oil price
Oil reserves in India
The relationships between gold and crude oil
An overview of oil prices in Dollar, Euro, Yen
Fertilizer industry analysis
1. The fertilizer industry before the 1960s
2. The fertilizer industry after the 1960s
Nutrient Content of fertilizers
A study of world fertilizer supply and demand
Financial analysis of the fertilizer industry
Tables and analysis
Conclusion
References

Abstract

Crude Oil is one of the most important sources of energy for a country. The prices of crude oil depend on many factors like Supply restrictions by Oil producing nations, demand for oil, uncertainties like war in the middle east and also the stability of US Dollar, in which crude oil is priced. The price fluctuations of crude oil affect the cost structure of the companies in the whole value chain of the crude oil. Some companies might be highly sensitive to these changes while others can withstand the same. The sensitivity here means the effect of the crude oil price fluctuations on the companies cost structure and in turn on its profitability. This project is about doing the sensitivity analysis of the industry selected, to crude oil price fluctuations. The industry selected for analysis is "fertilizer industry".

Objectives:
-The basic understanding of Crude Oil.
-Basic knowledge of the crude oil industry financials for both the world and India.
-The basic understanding of the futures and options contract.
-Study of fertilizer industry.
-Financial analysis of fertilizer industry.
-sensitivity analysis of fertilizer industry to crude oil.

Energy is the ability to do work. Stored energy becomes working energy when we use it. Energy has several forms, some of which are easily convertible and can be changed to another form useful for work.

Oil is the world's predominant energy source, accounting for about 40 percent of primary energy consumption. Coal and natural gas each account for about a quarter of global energy use, followed by hydroelectric, nuclear and renewable sources such as wind and geothermal.