Adam Smith Awards Asia 2021: MODEC award-winning client
  • Tuesday, 2 November 2021

Adam Smith Awards Asia 2021: MODEC award-winning client

We are delighted to announce that our client, MODEC, has been chosen as winner in the Treasury Today Adam Smith Asia Awards 2021. MODEC has been highly commended for ‘Best Foreign Exchange Solution‘. Zanders was mandated by MODEC as its consulting partner for this award-winning project.

The judges for the Adam Smith Awards 2021 have faced an exceptionally difficult task in selecting this year’s overall winners and highly commended winners. The judges received a record-breaking 497 nominations.

The Adam Smith Awards Asia are now in their eighth year and are recognised throughout the region as the ultimate benchmark of corporate achievement. We are proud to be part of MODEC’s award-winning team. Read our MODEC client case here, and/or details of the winning solution can be found below.

MODEC, the world’s largest independent operator of offshore floating production systems for the oil and gas industry, was managing its foreign exchange (FX) hedging process manually. In 2020, the company decided to automate this process, successfully reducing the time spent on it from three days to within one day.

Headquartered in Tokyo, MODEC is a general contractor for the engineering, procurement, construction and installation (EPCI) of floating systems for deep-sea oil production. These systems include FPSO (floating production storage and offloading) units, FSO (floating storage and offloading) units, floating liquefied natural gas (FLNG) facilities, tension-leg platforms (TLPs), semi-submersible platforms, mooring systems and new technologies to meet the challenges of gas production floaters.

Qiurong Chong: “The way we use SAP is not very standard, at some points, things got quite complex, but Zanders was able to resolve the complexities. Now the program is running very well. This process is expected to provide hedge accounting documentation under IFRS 9 and generate GL journal entries for monthly valuations and settlement. The automation reduces the processing time from an average of three days to within one day. The main beneficial part for us is that the business has the hedge documentation available from the system. In the past, we spent hours on computing effectiveness for the hundreds of transactions. When we were using Excel, we were only doing this on a quarterly basis. Now we can do it every month. Automating this FX transaction was a first step for us in the treasury department. We are still doing many other reports manually for our headquarters in Japan. By bringing our HQ onboard this TRM module, we can have a seamless flow of information between us and them, which reduces any lag time and the need for us to extract the reports for them.

For more information on this successful project mentioned, please contact Michiel Putman Cramer.