Floating Storage Regasification Unit – Project Finance Model

Financial Model, Mining Industry, Oil & Gas, Renewable Energy

10-year Financial Projections, Budgeting, Business Valuation, Cash Flow Analysis, Cash Flow Projections, Cash-on-Cash Multiple, Cost Calculation, Debt Schedule, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Reporting, Financing, Forecasting, Investment Multiple, Investor Cash Flows, Investors, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), NPV (Net Present Value), Payback Period, Private Equity Waterfall Distribution Models, Project Finance, Project Management, Project Plan, Return on Invested Capital (ROIC), Revenue Projections, Terminal Value, Uses and Sources of Funds

Floating Storage and Regasification Units (FSRUs) are multi-function vessels, which combine LNG storage and built-in regasification systems onboard a ship or barge. FSRUs can receive LNG directly from conventional and large LNG ships, storing it in insulated tanks and can regasify, or convert the LNG back into natural gas when needed. Compared to Land-based import and regasification terminals, which are, in most cases, good, long-term solutions to meet large base demands for energy, an FSRU can offer a lower-cost, faster, more flexible option. They are capable of bringing the benefits of LNG and natural gas quickly to where they are needed most.

This Financial model presents a dynamic (up to 15 years) forecast and profitability analysis of an FSRU operating scenario. The main purpose of the model is to enable users to get a solid understanding of the financial feasibility of the project and to evaluate the return to investors.

The model allows users to choose one of the below FSRU development models:

FSRU New Build: This business model refers to an FSRU being developed from scratch including building of a vessel.
FSRU Converted: This business model refers to an FSRU being built by converting a ship into a regasification unit.
FSRU Leased: This business model refers to an FSRU being leased on an operations and maintenance model.

The model includes asuumptions for development and construction or leasing costs, regasification plant capacity, LNG input and Natural Gas output, revenue, COGS and operating expenses, financing through Debt & Equity and calculates project return metrics (IRR, NPV, MOIC, Payback, etc.)

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure:

• Setup Assumptions
This section is used to input all the assumptions for the project.
It includes assumptions for Project Timing, Plant Capacity, LNG input and Natural Gas output, Pricing, Tax Credit Incentives (ITC & PTC), CapEx, Opex & Financing

• Development Budget
This section includes all assumptions for the development of infrastructure for operations of a LNG Regasification Plant to commence.
It includes Land Costs, Plant Development Costs and Other Development Expenses and is broken down into 4 development phases

• Payroll
This section includes assumptions for the positions, number of employess and salaries per position and a 15-year hiring schedule.

• Loan Schedule
Loan amortization Schedule of project’s debt including an optional moratorium and interest-only (IO) period.

• Scenarios
Scenario Ananysis for Plant’s Utilization, Revenue, COGS and OpEx using 3 different approaches (Base, Upside and Downside scenario).

• Project Cash Flows and Return Metrics
Presentation of Project’s Cash Flow and Returns including the below reports:
– Monthly Project Cash Flow
– Annual Project Cash Flow
– Plant Financing and Tax Supporting Schedules
– Key Performance Indicators
– Unlevered & Levered Project Return Metrics (IRR, MOIC, Payback, NPV)
– Business Performance Dashboard

• Investors Distribution Waterfall
A Private Equity 2-Tier Investors Distribution Waterfall Model including LPs Preferred Return (Hurdle Rate)

• Project Executive Summary
Professional Executive Summary report containing all of the high-level relevant information for review and is designed to be easy to read, print, and save to pdf. The report includes Project General Info, Timing, Sources, and Uses of Cash, Operations Summary and Key Metrics, Project and Investor return metrics.

Instructions on the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.

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