Table A1.

Documentation of the DRBV model

VariableTypology of variableEquation, initial value*
Average maturity rateAuxiliary= (0.24*1 + 0.41*3 + 0.35*7)
Bank loans + bonds + hedgingFlow= Function yields to bonds (yields) + if then else (cash flow from operations*0.1 < maturity, maturity − cash flow from operations*0.1, 0)
Cash flow from operationsFlow= [Coal extraction process*(19,797/39) − coal mining assets*(14,553/1,372)] + [“oil/gas extraction process”*(1) − “hydrocarbon (oil and gas) reserves”*(7,881/14,057)] + (sales of refined products*[(69,766 + 40,091)/119,584] − “refineries/chemical) plants”*[(61,583 + 39,503)/119,584)] + [sales of energy*(69,773/64,526) − power plants*(55,692/64,526)]
Coal extraction processFlow= Coal mining assets*mining productivity
Coal mining assetsStock= INTEG (mine development − coal extraction process, 1,372)
DebtStock= INTEG (“bank loans + bonds + hedging” − maturity, 210,627)
Depreciation ppFlow= pp/10
Depreciation refineries/chemical plants (r/cp)Flow= “Refineries/chemical plants”/10
DividendsFlow= 8,727
Employment and job enhancementAuxiliary= {Coal mining assets*[31,270/(coal mining assets + “hydrocarbon (oil and gas) reserves” + pp + “refineries/chemical plants”)] + “hydrocarbon (oil and gas) reserves”*[31,270/(coal mining assets + “hydrocarbon (oil and gas) reserves” + pp + “refineries/chemical plants”)] + pp*[31,270/(coal mining assets + “hydrocarbon (oil and gas) reserves “pp + “refineries/chemical plants”)] + “refineries/chemical plants”*[31,270/(coal mining assets + “hydrocarbon (oil and gas) reserves” + pp + “refineries/chemical plants”)]}*(1/technological upgrade)
Environmental and social impactsAuxiliary= “Technologies, ICT and intellectual property”/1 − “pollution (gas flared, particles, water usage, land usage)”/2
Equity financingStock= INTEG (new equity emission and 228,608)
Equity fundingFlow= New equity emission
ExplorationFlow= Investments*0.04
Extraction productivityAuxiliary= (4,197/14,057)*“maintenance and development activities”*technological upgrade
Financial capitalStock= INTEG (cash flow from operations + equity funding-dividends-investments-net financing needs and 439,235)
Function debt to yieldsAuxiliary= {[(0,0) − (200,000,0.2)], (0,0.01), (30,000,0.02), (60,000,0.03), (90,000,0.04), (120,000,0.05), (150,000,0.06), (180,000,0.07), (200,000,0.08)}
Function yields to bondsAuxiliary= {[(0,0) − (0.15,40,000)], (0,0), (0.01,10,000), (0.02,12,000), (0.03,14,000), (0.04,18,000), (0.05,23,000), (0.07,25,000), (0.09,27,000), (0.11,30,000), (0.13,31,000), (0.15,31,500)}
Hydrocarbon (oil and gas) reservesStock= INTEG (exploration − “oil/gas extraction process,” 14,217)
InterestsAuxiliary= Debt*yields
Investment in refineries/chemical plantsFlow= Investments*0.5
InvestmentsFlow= 9,163 + 55,891
Maintenance and development activitiesAuxiliary= (Investments*0.15)/9,163
MaturityFlow= MIN (cash flow from operations*0.1, debt/average maturity rate)
Mine developmentAuxiliary= Investments*0.2
Mining productivityAuxiliary= 0.028*“maintenance and development activities”*technological upgrade
Net financing needsFlow= Interests + maturity − “bank loans + bonds + hedging”
New equity emissionFlow= Equity financing*(share price appreciation/100)
New ppFlow= Investments*0.1
Oil/gas extraction processFlow= “Hydrocarbon (oil and gas) reserves”*extraction productivity
Pollution (gas flared, particles, water usage and land usage) functionAuxiliary= {[(0,0) − (10,70,000)], (1,67,632), (2,67,412)}
Pollution (gas flared, particles, water usage and land usage)Auxiliary= “Pollution (gas flared, particles, water usage and land usage) function” [(coal mining assets + “refineries/chemical plants” + pp)]*(1/technological upgrade)
ppStock= INTEG (new pp-depreciation pp and 64,526)
Power productivityAuxiliary= 1*“maintenance and development activities”
Refineries/chemical plantsStock= INTEG (“investment in refineries/chemical plants” − “depreciation r/cp” and119,584)
Refinery productivityAuxiliary= 1*technological upgrade*“maintenance and development activities”
R&D expendituresFlow= (Investments*0.02)/6.93
Sales of energyAuxiliary= pp*power productivity
Sales of refined productsAuxiliary= “Refineries/chemical plants”*refinery productivity
Share price appreciationAuxiliary= RAMP[(dividends/14,000), 1, 20]*stock market variations
Stock market variationsAuxiliary= RANDOM NORMAL(0.8, 1.2, 1, 0.1, 3)
Technological upgradeAuxiliary= 1 + (R&D expenditures/“technologies, ICT and intellectual property”)
Technologies, ICT and intellectual propertyStock= INTEG (R&D expenditures and 2,409)
YieldsAuxiliary= Function debt to yields(debt)

Notes:

*The third column of this table shows the equations used to calculate all the variables and, if present, their initial value. Initial values represent the financial BLI retrieved from the organization’s 2018 IR and annual financial statement

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