Specific financial and stock indicators as a sign of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (3) ◽  
pp. 529-553
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Stock Market ◽  
Oil And Gas ◽  
Raw Materials ◽  
Publicly Traded ◽  
Consolidated Financial Statements ◽  
Hydrocarbon Production ◽  
Exploration And Production ◽  
Net Revenue ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Subject. The article considers the specific financial and stock market indicators of the 25 biggest oil and gas companies from 2006 to 2018. Objectives. The aim is to identify key trends in the specific financial and stock market indicators of leading publicly traded oil and gas companies and reveal the factors that have led to this transformation, during the study period. Methods. The study draws on methods of comparative, financial, and economic analysis, as well as generalization of materials of consolidated financial statements. Results. The study established that the prolonged industry crisis had the strongest impact on the group’s performance, and independent companies were the most affected. Negative trends were evident in the period of high oil prices, when specific capital expenditures in the exploration and production sector increased, while profitability and market appreciation of the barrel of production declined. The industry crisis only aggravated the situation in the industry. It was revealed that the processing of purchased raw materials, as well as the resale of products, may have a significant impact on the specific net revenue from core activities. The study identified that having a serious difference in the level of debt, it is better to use an indicator of company's market value, rather than capitalization. Conclusions. There is a decrease in the specific profitability of hydrocarbon production in the stock market segment of the industry. It has an adverse effect on the market attractiveness of the oil and gas sector.

scholarly journals TAX RISKS IN THE OIL AND GAS SECTOR OF THE RUSSIAN ECONOMY 

2019 ◽  
Author(s):  
А.Х. Цакаев ◽  
А.Р. Батукаева
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Russian Economy ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Представлены результаты оценки налогового риска ПАО НК Роснефть , ПАО Газпром и ПАО ЛУКОЙЛ согласно общедоступным критериям самостоятельной оценки рисков для налогоплательщиков Концепции планирования выездных налоговых проверок, исходя из данных консолидированной финансовой отчетности, подготовленной в соответствии с международными стандартами финансовой отчетности, позволившие сделать вывод о предложении по преобразованию данной Концепции под международные стандарты финансовой отчетности. Сформулированы предложения по обеспечению снижения уровня налоговых рисков в деятельности российских нефтегазовых компаний Results of assessment of tax risk of PJSC Rosneft, PJSC Gazprom and PJSC Lukoil according to public criteria of independent risk assessment for taxpayers of the Concept of planning of exit tax audits, proceeding from data of the consolidated financial statements prepared according to International Financial Reporting Standards, allowed to draw a conclusion on the offer on transformation of this Concept under International Financial Reporting Standards are presented. Offers on ensuring decrease in level of tax risks in activity of the Russian oil and gas companies are formulated.

MARKET STRATIGRAPHY—THE 25-YEAR ODYSSEY OF THE AUSTRALIAN PUBLICLY-LISTED OIL AND GAS SECTOR (IS THE SMALLER E&P COMPANY THREATENED WITH EXTINCTION?)

2001 ◽  
Vol 41 (1) ◽  
pp. 803
Author(s):  
P.J. Cameron ◽  
J.G. Baird
Keyword(s):  
Oil And Gas ◽  
Oil Price ◽  
Market Sentiment ◽  
The Past ◽  
Exploration And Production ◽  
Substantial Investment ◽  
Production Company ◽  
Oil And Gas Companies ◽  
Risk Investment ◽  
Oil And Gas Sector

A market view of the population of publicly listed oil and gas companies during the past 25 years provides insights to the survival of the smaller exploration and production company. Mapping the life span of companies, and company population against parameters such as oil price and market activity, demonstrates that oil price is not the crucial driver for the industry as one would expect. The number of exploration companies existing at any one time is independent of oil price and discovery levels, but is more closely related to market sentiment and external influences. The benefits of success are apparent, but the vulnerability of smaller companies to that success is also apparent. While the ASX Energy Index has significantly out-performed the market, and the resources sector in general over this period, it is still considered a high-risk investment area, which fails to attract substantial investment funds.At a time of an apparently sustainable higher oil price, and record market levels, why is the level of new corporate activity so limited? In stratigraphic terms, is the survival of this species threatened? Was Darwin right—will the strong get stronger and will the small E&P company be driven to extinction?

STRANDED ASSETS AND SOVEREIGN STATES

2020 ◽  
Vol 251 ◽  
pp. R25-R36
Author(s):  
Amy Myers Jaffe
Keyword(s):  
Oil And Gas ◽  
Publicly Traded ◽  
Stock Valuation ◽  
Oil Companies ◽  
Asset Risk ◽  
To Come ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector ◽  
Opening Up ◽  
Financial Losses

There is evidence that the risk of stranded assets in the oil and gas sector is underpriced in financial markets. Publicly traded Western oil and gas companies are starting to write down assets, opening up the possibility that more rationalisation of value is likely to come. To the extent that large oil companies diversify portfolios to include cleaner energy and carbon sequestration technologies, it could reduce the risk of a sudden cascading change in the stock valuation of these firms and related bond and credit markets. Instead, the vast majority of oil and gas assets that will be stranded are in the control of sovereign states whose national budgets are highly dependent on oil and gas revenues. Thus, the problem of stranded asset risk for the oil and gas sector may be most relevant in markets for sovereign credit as well as risks that go beyond financial losses.

scholarly journals Restructuring Challenges in the Oil and Gas Sector: The Treatment of Regulatory Orders Post-Redwater

2016 ◽  
Author(s):  
Kelly Bourassa ◽  
Ryan Zahara ◽  
Chris Nyberg
Keyword(s):  
Oil And Gas ◽  
Energy Sector ◽  
Regulatory Climate ◽  
Corporate Restructurings ◽  
Exploration And Production ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Companies within the Alberta energy sector are currently unable to satisfy amounts outstanding to their creditors and at the same time fulfill their environmental responsibilities, culminating in a fight over whether provincial or federal statutes have priority when it comes to the environmental obligations of insolvent oil and gas companies. This article identifies recent legal developments relevant to corporate restructurings in the Alberta energy sector, examining the Alberta Energy Regulator’s treatment of exploration and production companies, the licensee liability rating program, and the practical challenges that Alberta Energy Regulator’s licensees and creditors face in the current economic and regulatory climate. Finally, this article analyzes options for facilitating the sale of licenced assets.

Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

2020 ◽  
Vol 19 (6) ◽  
pp. 1101-1120
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Cash Flow ◽  
Oil And Gas ◽  
Cash Flows ◽  
Annual Reports ◽  
Capital Expenditures ◽  
Publicly Traded ◽  
The Public ◽  
Statement Of Cash Flows ◽  
Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

Analyzing the market valuations of the world's leading public oil and gas corporations

2020 ◽  
Vol 26 (12) ◽  
pp. 2765-2789
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Market Valuation ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Market Valuations ◽  
Oil And Gas Companies

Subject. This article explores the market valuation ratios of the twenty five leading public oil and gas companies between 2006 and 2018. Objectives. The article aims to identify key trends in the changes in market valuations of the largest public oil and gas companies, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article shows certain changes in the main indicators of market valuation of the leading public oil and gas companies and identifies the main factors that contributed to these changes. It establishes that the most significant for comparison and valuation are ratios based on balance sheet values of assets and equity, and EBITDA, DACF and net income ratios are appropriate as auxiliary ratios. The article says that the exchange segment of the industry has increased the debt load, so instead of market capitalization as a component of the coefficients of this group, it is advisable to apply the company's value indicator. Conclusions and Relevance. The article concludes that the market sentiments towards the stock market segment of the global oil and gas industry are getting impaired. This is quite natural against the background of falling profitability of most leading companies. The results of the study can be useful in evaluating, forecasting and developing measures to increase the market capitalization and value of public oil and gas companies.

To the issue of application of thermoplastic reinforced pipes for the construction of oil and gas pipelines in the Arctic

2020 ◽  
pp. 88-99
Author(s):  
A. A. Tolmachev ◽  
V. A. Ivanov ◽  
T. G. Ponomareva
Keyword(s):  
Oil And Gas ◽  
The Arctic ◽  
Labor Costs ◽  
Hydrocarbon Production ◽  
Environmental Disasters ◽  
The North ◽  
Reinforcing Fibers ◽  
Wear And Tear ◽  
Oil And Gas Companies ◽  
Reinforcing Layer

Ensuring the safety of oil and gas facilities and increasing their facility life are today one of the most important tasks. Emergencies related to rupture and damage of steel pipelines because of their wear and tear and external factors are still the most frequent cases of emergencies during the transportation of hydrocarbons. To expand the fuel and energy complex in the north, in the direction of the Arctic, alternative types of pipelines are needed that solve the problems of reducing energy and labor costs in oil and gas companies, reducing the risk of environmental disasters and depressurization of pipelines during hydrocarbon production. Fiber-reinforced thermoplastic pipes can be such an alternative. This article is devoted to a comparative analysis of the materials of a composite system consisting of a thermoplastic pipe (inner layer) and reinforcing fibers (outer layer); we are discussing the design of the structural system consisting of polyethylene (inner layer) and aramid fibers (outer reinforcing layer).

Trends and Prospects of Development of the Oil and Gas Sector in the Context of Digitalization

2020 ◽  
Vol 26 (1) ◽  
pp. 35-45 ◽  
Author(s):  
A. G. Kazanin
Keyword(s):  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Global Market ◽  
The Arctic ◽  
Business And Society ◽  
Gas Industry ◽  
Exploration And Production ◽  
Oil And Gas Sector

The modern oil and gas industry is heavily dependent on the processes and trends driven by the accelerating digitalization of the economy. Thus, the digitalization of the oil and gas sector has become Russia’s top priority, which involves a technological and structural transformation of all production processes and stages.Aim. The presented study aims to identify the major trends and prospects of development of the Russian oil and gas sector in the context of its digitalization and formation of the digital economy.Tasks. The authors analyze the major trends in the development of the oil and gas industry at a global scale and in Russia with allowance for the prospects of accelerated exploration of the Arctic; determine the best practices of implementation of digital technologies by oil and gas companies as well as the prospects and obstacles for the subsequent transfer of digital technologies to the Russian oil and gas industry.Methods. This study uses general scientific methods, such as analysis, synthesis, and scientific generalization.Results. Arctic hydrocarbons will become increasingly important to Russia in the long term, and their exploration and production will require the implementation of innovative technologies. Priority directions for the development of many oil and gas producers will include active application of digital technologies as a whole (different types of robots that could replace people in performing complex procedures), processing and analysis of big data using artificial intelligence to optimize processes, particularly in the field of exploration and production, processing and transportation. Digitalization of the oil and gas sector is a powerful factor in the improvement of the efficiency of the Russian economy. However, Russian companies are notably lagging behind in this field of innovative development and there are problems and high risks that need to be overcome to realize its potential for business and society.Conclusions. Given the strategic importance of the oil and gas industry for Russia, its sustainable development and national security, it is recommendable to focus on the development and implementation of digital technologies. This is crucial for the digitalization of long-term projection and strategic planning, assessment of the role and place of Russia and its largest energy companies in the global market with allowance for a maximum number of different internal and external factors.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

scholarly journals DETERMINATION OF THE SUSTAINABILITY OF THE PROJECT PORTFOLIO OF THE OIL AND GAS SECTOR OF THE ECONOMY TO EXTERNAL FACTORS

2021 ◽  
pp. 32-40
Author(s):  
L.S. Leontieva ◽  
◽  
E.B. Makarova ◽  
Keyword(s):  
Oil Recovery ◽  
Portfolio Management ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
External Factors ◽  
Project Portfolio ◽  
Project Portfolio Management ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The oil and gas sector of the economy in many states remains the main source of foreign exchange and tax revenues to the budget. Moreover, its share, for example, in Russia, accounts for about 12 % of all industrial production. However, this sector, as the practice of world oil prices shows, is experiencing not only a rise, but also a decline. Consequently, the problem of forming a balanced portfolio of oil and gas assets is an object of close attention on the part of national oil and gas companies. The issues of choosing the optimal combination of oil and gas assets in the portfolio are no less urgent, especially among the tasks that all oil and gas companies face, both in Russia and abroad. An investment portfolio or a portfolio of oil and gas assets, which includes new projects for the commissioning of fields, as well as measures to enhance oil recovery, and exploration are objects of real investment. The high volatility of the oil and gas industry is influenced by various factors, including: macroeconomic, innovation risks and a number of others. These circumstances stimulate the sector to increase the resilience of its project portfolios in order to respond flexibly to changes. In an increasingly challenging and uncertain environment, oil and gas companies around the world face constant pressures as difficult strategic decisions and building long-term plans lead to a sustainable portfolio. In order to achieve their goals and maximize profitability, companies should apply certain algorithms in their practice. The article substantiates the role and importance of project portfolio management in achieving the goals of the state and companies in the oil and gas sector. The main goal of the article is to build an algorithm that is aimed both at determining the stability of the portfolio and the ability to flexibly respond to changes in the environment. The scientific novelty of the research lies in the determination of an algorithm for assessing the sustainability of a portfolio of projects of oil and gas companies. Application of this algorithm will allow oil and gas companies to take into account the influence of external factors. The research methodology is based on such methods as analysis of internal regulations and reporting of companies for project portfolio management, risk analysis, project ranking; grouping and classification method.

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