This webinar explores the concept of value in ISO 55000 and explains how a utility’s strategic objectives and values can be used to develop a framework for asset management decisions.
Hosted by Engerati on April 25, 2017
- Rhys Davies, President of eAsset Management and Chair of the ISO/TC251 Committee
- Boudewijn Neijens, Copperleaf CMO
Aging infrastructure, low growth and increasingly sophisticated demands from regulators and other stakeholders are creating a perfect storm, which is placing conventional maintenance and capital planning practices under pressure.
This requires energy and water providers to do more with less and to become more transparent and rigorous in their business processes.
Many providers are looking to recent developments in asset management best practices, most notably the new ISO 55000 management standard for asset management.
The essence of this standard is value realisation from assets - ensuring that the right things are being done right, and that these activities support the utility’s strategic objectives.
In this webinar, we will:
- Explore the concept of value, and focus on two core aspects of the ISO 55000 standard - how capital decisions are and should be made, and what framework is required to ensure decisions are optimal for all stakeholders.
- Introduce a decision-making maturity scale to help you gauge how your organisation makes decisions today, and where you want to be in the future. Using simple examples, we will illustrate how value, risk and time play crucial roles in effective decision making.
- Explain how to build a Value Framework for asset management decisions. This includes identifying your most important value criteria, aligning all criteria to a common evaluation scale, and using these criteria to decide what actions or investments will deliver the highest value.
In this 60-minute webinar recording, you will gain an understanding of why it is important to quantify this value appropriately, because it’s a crucial factor in determining whether an investment has merit, and how it ranks compared with other possible investments in a resource-constrained world. We’ll also highlight the importance of timing since value, costs and risks all change with time.
We’ll conclude with some examples of how Value Frameworks are deployed in practice in energy and water utilities, and provide you with tips on how to get started!
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.