When an asset is not delivering expected returns or output, the financial implications often extend far beyond immediate figures on a balance sheet.
For finance teams, understanding the full cost of underperformance is a critical step in supporting better decisions and improving return on investment.
Oil and gas companies that use automation to monitor asset performance are gaining greater clarity on operational costs. With integrated systems in place, finance teams can connect equipment health to financial planning and risk management.
Platforms such as SunSystems and UniFi EAM provide the data flow needed to track performance issues early, assess financial exposure, and control operational expenditure more precisely.
Unlocking the True Cost of Underperforming Assets
This guide shows you how to unlock the true cost of underperforming assets.
Start by examining utilisation data
An asset that is idle or only partially used ties up capital that could otherwise be allocated more effectively.
Poor utilisation erodes asset productivity, but it also distorts performance reporting if not analysed correctly.
Next, quantify maintenance and repair costs
A consistently underperforming asset may be drawing disproportionate resources in upkeep, often with diminishing returns.
Is the cost of sustaining it higher than the value it delivers? This question must be answered using real time data.
Operational and accounting considerations
Operational disruptions linked to underperformance should also be captured.
Downtime, delays, and reduced output can interrupt wider processes and impact revenue indirectly.
Finance teams need to model these effects to provide a more complete picture.
Depreciation schedules considerations
If an asset is underperforming early in its lifecycle, the depreciation expense may not match its economic reality.
That mismatch can create inaccuracies in financial planning and asset replacement strategies.
Reallocation and strategic assessment
Finance teams also need to evaluate opportunity costs.
What alternatives could be pursued if funds were released from low-performing assets?
Reinvesting in higher-yield areas could significantly improve overall performance metrics.
Automating Asset Monitoring for Better ROI
The real cost of underperforming assets is often obscured by surface-level analysis.
Finance teams must bring together operational data, maintenance logs, capital allocation models, and forecasting tools to build an accurate assessment.
Only then can asset portfolios be managed with full visibility and accountability.
By tying asset KPIs—such as availability, utilisation, or failure rate—to financial data in SunSystems and UniFi EAM, teams can model risk scenarios and monitor ROI on high-value assets.
These insights support capital allocation decisions and help finance leaders prioritise investments that reduce operational risk.
With SunSystems and UniFi EAM working together, oil and gas companies can gain a clear picture of asset health, cost impact, and financial risk.
The result is stronger decision-making, more accurate planning, and better cost control at every stage of the asset lifecycle.
To discuss how to deploy SunSystems and UniFi EAM, speak to us today!
