Case Study

Project Assessment for a $8B Opportunity for Energy Services

"SLKone drove Quality of Revenue by making sense of a competitive project bidding environment and develop a plan to deliver value to shareholders"

Industry
Services Performed

Situation

  • The largest customer for the client had shifted procurement strategies and launched a procurement process to select a sole vendor for the next 10 years of work, at current run rates nearly $13B in value
  • The client was struggling to reconcile the lower cost requirements needed to be competitive in the bid with the profitability the project would produce
  • A lack of ability to view various scenarios and the sensitivity of financial outcomes to key drivers had caused their process to stall
  • SLKone was engaged to build a more flexible project financial model that incorporated key profitability drivers as well as award scenarios

Bespoke Solutions

  • SLKone began by holding interviews with key contributors to the tender process to identify key drivers of performance, as well as background context for the model’s construction
  • Over the course of 10 days, SLKone built a fully integrated financial model driven by operational inputs with flexibility for Well award scenarios, full reporting suite and sensitivity analysis to key assumptions
  • A scenario analysis was performed to identify the optimal target well sites for Revenue and Profitability
  • Market research was performed to understand the customers desire for per well cost reductions and to indicate winning proposals

Leading With Results

  • Enhanced client capabilities to tailor proposals and aggressively target the optimal site award
  • Developed a common understanding of target profitable sites and the drivers of profitability and cash flow
  • Decoded the operational metrics driving project profitability and enabled the team to set well-defined targets to operations teams in order to realize a value adding outcome
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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