Petrochemical Engineering Financial Model Template

The Petrochemical Engineering Financial Model is a complete, bank-ready Excel template for evaluating a greenfield petrochemical plant from construction through fifteen years of operations. Built around an integrated propane dehydrogenation (PDH) and polypropylene (PP) complex, it links feedstock pricing, plant capacity, material balances, utilities, OPEX, CAPEX, financing and tax into one fully formula-driven workbook. Investors, lenders, project developers and engineering consultants can use it to test feasibility, prepare investment committee papers and support financial close.

Financial Model for a Petrochemical Engineering Company

This model uses a professional monthly and annual timeline: three years of monthly construction, five years of monthly operations with annual roll-up columns, and ten further years shown annually. Change a single start date and every date, year header, escalation index and flag updates automatically. Integrated income statement, cash flow statement and balance sheet outputs balance in every period, while 22 automated integrity checks give you confidence that the numbers hold together.

Decision-makers get the metrics that matter: project IRR, equity IRR, NPV, a full DCF valuation with CAPM-based WACC, payback, DSCR, LLCR, break-even prices and peak funding. Twelve predefined scenarios, sixteen sensitivity drivers and Excel data tables let you stress-test feedstock prices, product prices, utilisation, CAPEX overruns, construction delays, interest rates and FX. Colour-coded inputs, clear documentation and a live KPI dashboard make this petrochemical financial model easy to use and present.

Tab-by-Tab Guide

01. Cover & Instructions

Start here for a complete orientation. The cover page displays live key results, model integrity status, project details and a colour legend, plus a clickable index for all 23 tabs and step-by-step instructions, so new users can navigate the petrochemical model within minutes.

Live NPV, IRR, DSCR, DCF value and project cost summary
Hyperlinked tab index with descriptions
Colour legend for inputs, calculations and links
Step-by-step “how to use” guide and model conventions

02. Model Control & Timeline

The control centre of the financial model. Set the model start date and active scenario, and the timeline engine automatically generates every period date, construction and operations flag, operating month counter and escalation index used throughout the workbook, with zero manual re-dating.

Single start date re-dates the entire model
Scenario selector (12 scenarios) and live COD calculation
Monthly construction, monthly early operations, annual later years
CPI, cost, labour and maintenance escalation indices

Petrochemical Engineering Company Production Yields & Pricing

03. Global Assumptions

Central project information and macroeconomic inputs live here, including inflation, escalation base date, foreign exchange rate, local-currency cost share and deposit interest. Unit conventions are documented clearly, and live scenario adjustments are displayed so users always know which assumptions drive results.

Project, sponsor and configuration details
Inflation, FX and cash deposit rate inputs
Technical constants and unit conventions (kt × US$/t = US$000)
Read-only view of live scenario adjustments

04. Product & Feedstock Pricing

A detailed petrochemical price deck covering products, feedstocks, coproducts, utilities, catalysts, chemicals and logistics. Contract and spot pricing, premiums, discounts, floors, ceilings, landed feedstock costs and escalation combine into monthly price outputs, realisations, spreads and price variance analysis.

Product pricing for PP homopolymer, impact copolymer and propylene
Propane and ethylene landed-cost build-up
Utility tariffs with demand, capacity and time-of-use charges
Product spread, feedstock spread and weighted average selling price

05. Plant Capacity & Production

Model plant capacity, availability and output for each process unit. Nameplate capacity, scheduled maintenance, unscheduled downtime, planned turnarounds, utilisation and ramp-up profiles drive monthly production schedules for propylene and polypropylene, with off-spec, rework, scrap and finished goods inventory tracking.

Capacity assumptions for PDH and PP units
Turnaround scheduling and multi-stage ramp-up curve
Production schedules with off-spec, losses and inventory
Capacity utilisation, availability and production variance outputs

06. Material Balance & Yields

A rigorous material balance links feedstock to products. Design and actual yields, conversion, selectivity, recovery and recycle rates determine propane requirements, coproduct volumes and losses, while automated mass balance checks confirm that every tonne of input is fully accounted for.

Material assumptions for 13 material streams
Feedstock and product balances with inventory movements
Coproduct disposition for hydrogen, fuel gas and C4+
Mass balance and yield reconciliation checks

07. Feedstock & Utilities Use

Consumption rates per tonne of output, licensor standard rates and efficiency factors calculate feedstock and utility quantities each period. Electricity, steam, gas, water, nitrogen, air, catalysts, chemicals and waste treatment are priced into total consumption cost, intensity metrics and consumption variances.

23 consumption categories with actual vs standard rates
Utility quantities and costs by period
Energy, electricity, steam and water intensity metrics
Feedstock efficiency and consumption cost variance

08. Operating Costs (OPEX)

A complete OPEX build separating variable and fixed costs. Variable production costs flow from consumption, while fixed costs cover payroll, maintenance, insurance, utilities charges, IT, security and more. A cost centre budget and variance analysis support operational budgeting and control.

Variable and fixed OPEX by category
Cost centre budget with allocation, commitments and EAC
Cash cost of production and OPEX per tonne
Favourable and unfavourable cost variance tracking

09. Staffing & Maintenance

Plan headcount, payroll and maintenance in detail. Twenty-one staffing categories with salaries, allowances, overtime and benefits drive the payroll budget, while maintenance categories, critical equipment programmes, turnarounds, catalyst replacement and sustaining CAPEX build a realistic maintenance budget.

Headcount and payroll by employee category
Critical equipment maintenance programme
Turnaround and catalyst replacement cost scheduling
Maintenance KPIs, backlog and budget variances

10. CAPEX & Construction Schedule

Thirty-seven CAPEX work packages are phased monthly on S-curves between start and finish dates. Contingency, escalation, overruns and construction delays flow automatically, with budget control, commitments, estimate at completion, construction milestones, progress tracking and an actual CAPEX input row.

37 project categories with contract and budget data
Automatic S-curve CAPEX phasing
Construction milestones and schedule variance
Budget control: committed, forecast to complete, EAC

11. Depreciation & Fixed Assets

CAPEX and capitalised interest transfer from construction in progress to a full asset register at COD. Assets depreciate straight-line by class and useful life, with sustaining CAPEX, technology licence amortisation, deferred financing costs and reconciliation checks keeping the fixed asset accounts accurate.

Asset register across 19 asset categories
Construction in progress and capitalised interest
Fixed asset rollforward and depreciation by class
Intangibles and deferred financing cost amortisation

Petrochemical Engineering Company Financial Statements

12. Working Capital

Receivables, inventories and payables are calculated from day-count assumptions each period. Feedstock, raw material, work in progress, finished goods, spare parts, catalyst and chemical inventories are modelled, producing net working capital, cash movements and working capital days.

Customer, supplier and inventory day assumptions
Detailed inventory valuation by category
Bad debt and inventory obsolescence
Net working capital and change in NWC outputs

13. Funding & Debt Schedule

A full project finance funding structure. Construction is funded by sponsor equity, shareholder loans and senior debt at target gearing, followed by an operating cash waterfall with debt service reserve account, working capital revolver, cash sweep, distribution lock-up and standby equity.

Sources and uses with capitalised interest and fees
Senior debt drawdowns, interest and repayment schedule
DSRA, revolver, cash sweep and dividend waterfall
DSCR, net debt and debt-to-equity outputs

14. Revenue Build-up

Revenue builds from sales volumes and prices by product and market. Domestic and export sales, coproduct revenue, tolling and other income are calculated, then reduced by discounts, rebates, freight, commissions and duties to net revenue, with volume and price variance analysis.

Sales assumptions by product and market
Sales volume reconciliation with inventory
Gross-to-net revenue bridge
Revenue by product, process unit and market

15. Income Statement

A monthly and annual profit and loss statement from revenue through cost of sales, operating expenses, EBITDA, EBIT and net income. Margin analysis and budget-versus-actual rows let you enter actual results and track variances against the forecast as the project operates.

Detailed cost of sales and operating expense lines
Gross margin, contribution, EBITDA and EBIT margins
Interest, financing fee amortisation and tax
Budget vs actual variance analysis

16. Cash Flow Statement

An indirect cash flow statement reconciles net income to cash. Operating, investing and financing cash flows are presented in full, with cash reconciliation, minimum cash testing, free cash flow, unlevered and levered cash flow, and peak funding requirement outputs.

Operating, investing and financing cash flows
CAPEX split by cash flow line
Cash reconciliation and minimum cash test
Free cash flow and peak funding requirement

17. Balance Sheet

A complete balance sheet for every period, covering current and non-current assets, liabilities and equity. Retained earnings, year-to-date income and dividends are tracked automatically, and a built-in balance check confirms that assets equal liabilities plus equity throughout the model.

Detailed assets, liabilities and equity lines
Debt split into current and non-current portions
Deferred tax assets and liabilities
Balance sheet check in every period

18. Tax & Tax Loss Carryforward

Calculate corporate tax accurately with accounting and tax depreciation differences, interest deductibility limits, tax holidays, credits and loss carryforwards. Current and deferred tax, payment lags, tax payable and effective tax rates are produced for robust after-tax cash flow and returns.

Taxable income reconciliation
Tax loss schedule with utilisation limit and expiry
Current and deferred tax calculation
Effective and cash tax rate outputs

Petrochemical Engineering Valuation & KPIs

19. Project Economics & Returns

An annual summary of project and equity cash flows produces the headline investment metrics. Project NPV, project IRR, equity IRR, MIRR, payback, profitability index, ROIC, ROE, DSCR, LLCR and break-even prices give investors and lenders a complete view of project economics.

Unlevered and levered equity cash flows
NPV, IRR, MIRR, payback and profitability index
DSCR, LLCR and interest coverage ratios
Break-even product price, feedstock price and utilisation

20. DCF Valuation

A full discounted cash flow valuation with CAPM-based WACC, relevered beta and unlevered free cash flow to firm. Choose Gordon Growth, exit multiple or asset-life terminal value, set any valuation date, and bridge enterprise value to equity value instantly.

CAPM cost of equity and WACC build-up
Unlevered FCFF with tax loss shield
Mid-year discounting and three terminal value methods
EV-to-equity bridge and WACC sensitivity grids

21. Sensitivity & Scenarios

Stress-test the investment case with twelve predefined scenarios and sixteen sensitivity drivers. Excel data tables show scenario outputs side by side, plus one-way sensitivities and a two-way product price versus feedstock price grid for NPV, IRR and DSCR.

12 scenarios including downside, delay and CAPEX overrun cases
16 sensitivity flex drivers
Scenario comparison with probability-weighted NPV
One-way and two-way sensitivity tables

22. Dashboard & KPI Summary

A presentation-ready dashboard summarising the project at a glance. KPI tiles show returns, coverage ratios, project cost, peak funding, DCF value and model status, alongside an annual summary table and charts for revenue, EBITDA, cash flow, debt and production.

16 live KPI tiles
Annual financial and operating summary
Six charts for presentations and reports
Updates automatically with the active scenario

23. Model Checks

Integrity checks run across every period, including balance sheet balance, cash reconciliation, sources and uses, mass balance, revenue and cost tie-outs, debt and reserve tests. Clear PASS, WARNING and REVIEW flags show at a glance whether the model is working correctly.

22 automated integrity checks
Period-by-period exception tracking
Overall model status flag linked to the cover
Commercial warnings for cash and DSCR

Why Buy This Model?

Building a petrochemical financial model from scratch can take weeks of specialist work, and a single broken link can undermine an entire investment case. This Petrochemical Engineering Financial Model gives you a professionally structured, fully formula-driven Excel workbook that combines engineering detail with project finance rigour. It models the plant the way engineers think about it (capacity, yields, consumption rates and turnarounds) and the way bankers assess it (cash waterfalls, DSCR, LLCR, DCF and returns). Every assumption is visible and editable, every output is traceable, and automated checks confirm that the statements balance. Whether you are preparing a feasibility study, a lender’s base case, an investment committee paper or an operating budget, this model saves time, reduces risk and helps you present a credible, defensible case.

Petrochemical Engineering Frequently Asked Questions

Can I use this model for a different petrochemical plant, not just PDH and polypropylene?

Yes. The example is an integrated PDH-PP complex, but the structure works for other plants. Capacities, products, feedstocks, yields, consumption rates and prices are all inputs. Zero-rate options for naphtha, ethane, butane and condensate are already included for alternative feedstock routes.

Do I need advanced Excel skills to use it?

No. Inputs are colour-coded in blue on a yellow background, calculations are in black and links in green. The cover tab has step-by-step instructions, and every tab has a summary line explaining what it does and what feeds it.

Can I change the project start date and timeline?

Yes. Change one start date on tab 02 and every date, year header, flag and escalation index updates automatically. Construction delays and commissioning delays are handled through the scenario settings, and COD moves accordingly.

Is the model really fully formula-driven?

Yes. There are over 108,000 live formulas and no hard-coded results. Every forecast figure links back to an input, so you can trace any number to its source.

Does the model contain macros or circular references?

No. It is a standard .xlsx file with no VBA macros. Interest is calculated on opening balances, so there are no circular references and no need for iterative calculation.

Which versions of Excel does it work with?

It works with Microsoft Excel 2010 or later on Windows and Mac, including Microsoft 365. The scenario and sensitivity tables use Excel’s built-in What-If data tables.

Why do some sensitivity tables need me to press F9?

To keep the model fast, calculation is set to “automatic except data tables”. After changing inputs, press F9 to refresh the scenario and sensitivity tables on tab 21. The DCF sensitivity grids on tab 20 update instantly.

What financial statements are included?

A full monthly and annual income statement, cash flow statement and balance sheet. The balance sheet balances in every period, and a dedicated checks tab confirms it.

Which returns and valuation metrics does it calculate?

Project NPV, project IRR, equity IRR, MIRR, payback, discounted payback, profitability index, ROIC, ROE and break-even prices. It also produces a full DCF enterprise value and equity value, DSCR, LLCR, interest coverage and peak funding requirement.

Is it suitable for presenting to banks and lenders?

Yes. It includes a senior debt schedule, debt service reserve account, working capital facility, cash sweep, distribution lock-up and coverage ratios. Formatting and structure follow bankable model conventions.

Can I model different financing structures?

Yes. You can change gearing, interest rates, fees, tenor, grace period, shareholder loan share, reserve months, cash sweep and dividend payout. Placeholder lines for subordinated debt, leases and other funding are included for flexibility.

Can I track actual results against the forecast?

Yes. There are input rows for actual CAPEX, actual revenue, cost of sales and operating expenses. The model calculates variances against budget automatically.

How are scenarios and sensitivities handled?

Twelve scenarios cover base, upside, downside, feedstock and product price shocks, CAPEX overruns, construction delays, low utilisation, low yield, utility cost and FX stress, plus a combined downside. Sixteen sensitivity drivers can be flexed on top of any scenario.

How does it handle tax?

It includes corporate and local tax rates, tax depreciation with an initial allowance, interest deductibility limits, tax holidays, loss carryforwards with utilisation caps and expiry, payment lags, and current and deferred tax.

Can I add more products, units or tabs?

Yes. The model is fully unlocked and uses a consistent layout on every tab, so experienced users can extend it. The integrity checks help confirm that changes have not broken the model.

What currency and units does it use?

Money is in US$ thousands, volumes in thousand tonnes (kt) and prices in US$ per tonne. A foreign exchange rate and local-currency cost share are included for FX stress testing.

Is the data in the model real market data?

No. The example assumptions are realistic and illustrative, calibrated to a typical PDH-PP project. Replace them with your own project data, prices and quotes for your specific analysis.

Further Reading:

Downstream Financial Model: Optimize your refining and distribution planning with detailed margin analysis and product valuation tools.
Financial Model for a Midstream Oil and Gas Facility: Evaluate storage, pipeline transportation, and terminal throughput economics with this robust infrastructure-focused tool.
Upstream Financial Model: Gain clarity on exploration and production (E&P) lifecycles, including drilling costs, well performance, and reserve economics.
LNG Gas Refinery Financial Model: Project complex liquefaction logistics, conversion yields, and global export economics with our specialized LNG processing template.

Final Notes On The Financial Model Key Ratios and KPIs

Gross Margin, EBITDA Margin, Net Margin
Return on Equity (ROE), Return on Assets (ROA)
Debt/Equity, Interest Coverage
Cash Conversion Cycle
Capacity Utilization
Break-even Price per Metric Ton

Scenario and Sensitivity Analysis

Feedstock cost variation
Product price volatility
Project delay impacts
FX fluctuation scenarios
Regulatory change impact