3.1 Introduction
This chapter presents the results of a comparative financial analysis performed to the
three Oceans of Tomorrow projects. Each one of the projects has generated different
deliverables where the economic data are reviewed. However, the direct comparative
of these outputs presented in project’s deliverables shows diverse weakness. Firstly,
different financial indicators were obtained. Secondly, different initial conditions
were used. Thirdly, different parameters were used in the analysis. These three
problems combined result in the final output not being comparable as it is.
To address this issue and to allow for a clear comparative analysis of the results
from the projects, some further actions need to be taken. The methodology,
presented in Sect. 3.2.2, includes two main steps. At a first stage, a normalisation
of project’s data is performed. This normalisation transforms the main financial
outflows and inflows in a relative value using the production size of each project as a
normalising parameter. These values are then compared to main figures obtained in
the scientific literature and other economic information. This step should help to
assess if the cost and revenue structure of each project are included in common range
of variation. These results are presented in Sect. 3.2.3.
The second stage involves the calculation of a profitability indicator, in this case
the net present value. This calculation is performed with standard and homogeneous
parameters (such as horizon time, discount rate and construction years) for all
different projects. The use of these common boundary conditions makes possible
to compare the results of the projects under the same framework. This analysis is
detailed in Sect. 3.4. Beyond the data used in the financial analysis, the possibility
exists for variability on the values used in the analysis. To assess the impact of the
possible variability of the inputs on the financial model, a sensitivity and a risk
analysis are also performed. These results are presented in Sects. 3.5 and 3.6,
respectively. Finally, some concluding remarks and caveats about the results
obtained are included in Sect. 3.7.
3.2 Methodology
The following methodology has the objective to assess and compare the financial
viability of multi-use of space and multi-use platform concepts developed on the
Oceans of Tomorrow projects studied in H2Ocean, TROPOS and MERMAID.
The methodology to apply is divided into five steps:
1. Review available information from projects’ plans.
2. Homogenise available information.
3. Perform financial assessment.
4. Perform sensitivity analysis.
5. Perform risk assessment.
40
S. Torres-Ortega et al.
This chapter presents the results of a comparative financial analysis performed to the
three Oceans of Tomorrow projects. Each one of the projects has generated different
deliverables where the economic data are reviewed. However, the direct comparative
of these outputs presented in project’s deliverables shows diverse weakness. Firstly,
different financial indicators were obtained. Secondly, different initial conditions
were used. Thirdly, different parameters were used in the analysis. These three
problems combined result in the final output not being comparable as it is.
To address this issue and to allow for a clear comparative analysis of the results
from the projects, some further actions need to be taken. The methodology,
presented in Sect. 3.2.2, includes two main steps. At a first stage, a normalisation
of project’s data is performed. This normalisation transforms the main financial
outflows and inflows in a relative value using the production size of each project as a
normalising parameter. These values are then compared to main figures obtained in
the scientific literature and other economic information. This step should help to
assess if the cost and revenue structure of each project are included in common range
of variation. These results are presented in Sect. 3.2.3.
The second stage involves the calculation of a profitability indicator, in this case
the net present value. This calculation is performed with standard and homogeneous
parameters (such as horizon time, discount rate and construction years) for all
different projects. The use of these common boundary conditions makes possible
to compare the results of the projects under the same framework. This analysis is
detailed in Sect. 3.4. Beyond the data used in the financial analysis, the possibility
exists for variability on the values used in the analysis. To assess the impact of the
possible variability of the inputs on the financial model, a sensitivity and a risk
analysis are also performed. These results are presented in Sects. 3.5 and 3.6,
respectively. Finally, some concluding remarks and caveats about the results
obtained are included in Sect. 3.7.
3.2 Methodology
The following methodology has the objective to assess and compare the financial
viability of multi-use of space and multi-use platform concepts developed on the
Oceans of Tomorrow projects studied in H2Ocean, TROPOS and MERMAID.
The methodology to apply is divided into five steps:
1. Review available information from projects’ plans.
2. Homogenise available information.
3. Perform financial assessment.
4. Perform sensitivity analysis.
5. Perform risk assessment.
40
S. Torres-Ortega et al.