The Corporate Economic-Finance Department plans, executes and analyses CLH finances. Their work makes it possible to create value for the company and improve its efficiency.
The corporate Economic-Finance Department is a key to our group’s proper functioning. Some of its tasks include planning and management control, tax efficiency and procedures and creating financial information reports.
The department is comprised of the areas of Management Control and Planning, Administration, Finance and Tax Management. Two new units were added a few months back: International Control and Digitization and Financial Efficiency, in order to “adapt to the internationalization process and reinforce our competitiveness in an ever more demanding environment,” explains CFO, David Folgado.
Management Control and Studies
It analyses the profitability of our projects and prepares situational reports. Plus, it studies and controls the budget, prepares the monthly profit and loss account, year-end forecasts and the risk map. It also produces studies for other departments and our shareholders.
It works with the Corporate Sales Department to design, coordinate and update our price models. “Setting a price is quite easy, doing it well is more difficult and optimizing it is what’s complicated because you have to find a figure that’s competitive and profitable,” highlights the Director of Management Control and Studies, Miguel Ángel Sanz.
One of the most recent milestones was creating a new model “that makes it possible to forecast the impact on business of different market circumstances such as a drop in fuel consumption or possible energy cost overruns”. It’s also working on a new simpler and more homogeneous business plan model with more flexible updating and scenario assessment.
It prepares CLH Group’s individual and group financial statements, guaranteeing that all movements related to customer billing and collections, investments, payments to suppliers and for taxes and payroll, among others, are correctly recorded pursuant to Spanish and international accounting standards.
Historically, it has worked on streamlining administrative processes such as invoice processing and approval in order to make the CLH Group’s internal oversight more solid.
It recently started using a new billing systems that is “more robust, simpler and more flexible so information can be constantly extracted without needing to wait until the end of the month,” says the Assistant Manager of Administration, Antonio Palacios.
One of its missions is to optimize the management of our financial resources. “We control the balances of our accounts, handle the necessary bank movements and decide how to pay most adequately for efficient daily receivables and payables,” explains the Head of Finance, Guillermo Hilla.
It is also responsible for securing credit lines, loans, guarantees and other financial products to meet our company’s short and long-term needs: “We maintain close relationships with the major banks and constantly monitor the markets to anticipate its evolution and get the most favourable conditions”.
On an international scale, it studies financing possibilities for new operations and coordinates bank negotiation: “We’re encouraging each subsidiary to fund themselves locally and autonomously and remain credible in the eyes of the banks with their own business without needing to resort to parent company financing”.
It supervises, coordinates and executes the CLH Group’s tax obligations. The taxes it manages include the Special Hydrocarbon Tax, Corporate Tax, VAT, personal income tax withholdings and dividend withholdings and payments.
Tax-wise, it has worked with the Corporate Sales Department to ensure tanker ships can be considered an extension of our facilities, “with the possibility of blending fuels under certain premises onboard,” highlights the Head of Tax Management, Elena Valero. It has also led the re-assessment of different customs authorizations including CLH’s classification as an Authorised Economic Operator for simplified customs and safety procedures.
Internationally, it reviews subsidiaries to ensure they comply with their tax obligations “which has involved immense efforts to understand each country’s standards, deadlines and taxes”.
It arose as a response to CLH’s international growth. Its duties include “supervising and coordinating our companies’ accounts, contracts, taxation and IT systems outside Spain as well as the adequacy of their processes in relation to the Group’s standards,” indicates the head of the department, Lourdes Abad.
Digitization and Financial Efficiency
It is responsible for improving management’s work methods and processes. Dora Valdés, who heads this unit, underlines that “We’re focused on automating all repetitive administrative work that prevents us from doing other work of greater value and this has meant real analysis work from all perspectives”.