Analyzing the business and financial performance indicators of the world's leading public oil and gas corporations

2020 ◽  
Vol 13 (4) ◽  
pp. 448-479
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Negative Impact ◽  
Raw Materials ◽  
Stock Exchange ◽  
Operating Performance ◽  
Oil And Gas Industry ◽  
Annual Reports ◽  
Gas Industry ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the financial, stock-exchange and operating performance, as well as the financial and economic analysis 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 financial, stock-exchange and operating performance, as well as the analysis ratios 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. Results. Based on a comprehensive analysis of the twenty five oil and gas companies' annual reports, the article identifies trends in the changes in financial, stock-exchange and operating performance in the industry's public sector, and establishes the main factors that affected these changes. Conclusions. Despite the growth of raw materials production, the stock segment of the oil and gas industry shows a decrease in profitability. This has a negative impact on the market attractiveness of the oil and gas sector.

Applying asset-and equity-based multipliers in the valuation of oil and gas corporations

2021 ◽  
Vol 27 (1) ◽  
pp. 129-167
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the ratios of the company's market capitalization and value to the balance sheet value of assets and equity of the twenty five leading public oil and gas companies between 2008 and 2018. Objectives. The article aims to identify key trends in the changes in market capitalization and value ratios of the company to the balance sheet value of assets and equity of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry. 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 establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios. Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock exchange sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The results of the study can be used to assess the possible value of oil and gas assets as part of a comparative approach and develop measures to increase the market capitalization of public oil and gas companies.

Applying net income-based multipliers in the valuation of oil and gas corporations

2021 ◽  
Vol 14 (1) ◽  
pp. 65-106
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Net Profit ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the ratios of the company's market capitalization to the net income of shareholders of the twenty five leading public oil and gas companies between 2008 and 2018. Objectives. The article aims to identify key trends in the changes in the values of market-capitalization-to-shareholders'-net-income ratios of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry. 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 establishes that the multipliers studied based on the net profit of shareholders are of little use for assessing the value of oil and gas companies due to the volatility of oil prices. Conclusions. To apply the multipliers based on net profit is very difficult in the face of declining profitability and increasing debt burden in the stock exchange sector of the global oil and gas industry.

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 Market valuation of the world's leading public oil and gas corporations as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 26 (4) ◽  
pp. 414-433
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Market Valuation ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the market valuation ratios of the twenty five leading listed 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 listed 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 listed 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 net sales, 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 enterprise 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 listed oil and gas companies.

scholarly journals Corporate Environmental Disclosures of Oil and Gas Companies in India: An Analysis of Executives’ Perceptions

2021 ◽  
Vol 16 (3) ◽  
pp. 861-879
Author(s):  
Kishore Kanti Majumdar ◽  
Shuchi Pahuja
Keyword(s):  
Value Chain ◽  
Oil And Gas ◽  
Environmental Issues ◽  
Oil And Gas Industry ◽  
Environmental Indicators ◽  
Annual Reports ◽  
Gas Industry ◽  
Sustainability Disclosure ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

Environmental and sustainability issues have assumed significance, leading to social and legal pressures on the companies across the world to take steps to reduce and prevent adverse impact of their activities on the environment and to disclose this information to the concerned stakeholders. The present study aims at investigating the perceptions of executives from 26 listed Indian oil and gas companies on Corporate Environment Disclosures (CEDs)in the annual reports using a structured questionnaire.The questionnaire was constructed on the basis of eleven environmental indicators provided in international oil and gas industry guidelines for voluntary sustainability reporting framework. An attempt was made to determine whether the extent and type of environmental disclosures have correlation with executives’ position in the organization, their knowledge about the annual reports, their stock holdings in the company and the value stream to which the companies belonged. It was found thatthe responding executives were well aware of the environmental issues associated with activities across the value chain in the oil and gas industry. They agreed that these issues are material and must be disclosed in the annual reports, but had different perceptions on the importance of four environmental issues given in the questionnaire for disclosure in the reports. A significant statistical relationship was found between perceived corporate environmental disclosure index (PCEDI) and respondents’ positions in the company and their knowledge on the annual reports. It is suggested that a greater role to knowledgeable senior executives at key positions should be assigned to deal with sustainability disclosure affairs.

Analyzing the assets of the world’s leading public oil and gas corporations

2020 ◽  
Vol 19 (2) ◽  
pp. 359-373
Author(s):  
O.V. Shimko
Keyword(s):  
Statistical Analysis ◽  
Public Sector ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Annual Reports ◽  
Economic Activities ◽  
Public Companies ◽  
Gas Industry ◽  
The Public ◽  
Oil And Gas Companies

Subject. The article analyzes assets of the largest public companies operating in the oil and gas industry from 2006 to 2018, like ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, PAO Gazprom, PAO NK Rosneft, PAO LUKOIL, and others. Objectives. The aim is to make a comprehensive statistical analysis of changes in absolute values and the structure of assets in the public sector of the oil and gas industry. Methods. The study employs methods of statistical analysis and generalization of materials of official annual reports based on the results of financial and economic activities of the largest public oil and gas corporations. Results. Using the comprehensive analysis of balance sheets of 25 oil and gas companies, I determine changes in the size and structure of assets in the public sector of the industry, and establish the main factors that contributed to this transformation. Conclusions. The findings revealed an increase in the book value of assets in the majority of leading public oil and gas companies. Large mergers and acquisitions and agreements for new field developments also contributed to the increase. The study established that the protracted industry crisis resulted in reducing the proportion of current assets in order to release funds for revenue increase. That was why oil and gas companies sought to accelerate the collection of receivables, primarily by means of trade component. It was also determined that they channeled a part of funds thus collected to short-term financial investments.

scholarly journals Ethical And Environmental Disclosures: An Analysis Of The Oil And Gas Industry

2012 ◽  
Vol 1 (2) ◽  
pp. 43-50
Author(s):  
Violet C. Rogers ◽  
Jack R. Ethridge ◽  
Treba A. Marsh ◽  
Jessica Lott
Keyword(s):  
Risk Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fortune 500 ◽  
The Other ◽  
Annual Reports ◽  
Gas Industry ◽  
Other Hand ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

This study investigates the similarities of ethical and environmental disclosures, as well as risk factors contained within annual reports for the reporting year 2009. The data were collected from Fortune 500 oil and gas company annual reports. Findings include: 1) an emphasis on environmental, financial, nonfinancial and ethical disclosures and 2) similar reported risks for all companies investigated. The findings illustrate that many of the studied oil and gas companies have similar disclosures but, on the other hand, are situation specific to particular company and location.

Analyzing the financial sustainability of the world's leading public oil and gas corporations

2020 ◽  
Vol 26 (6) ◽  
pp. 1246-1263
Author(s):  
O.V. Shimko
Keyword(s):  
Financial Stability ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Annual Reports ◽  
Significant Negative Impact ◽  
Financial Soundness ◽  
Economic Analyses ◽  
The Global Financial Crisis ◽  
Oil And Gas Companies

Subject. This article explores the key financial stability indicators of the twenty five largest public oil and gas companies between 2006 and 2018. Objectives. The article aims to determine the current values of the key financial stability indicators of the largest public oil and gas companies, identify key trends in their changes within the study period, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization. Results. Based on a comprehensive analysis of the twenty five oil and gas companies' annual reports, the article identifies trends in the changes in the key financial stability indicators in the industry's public sector, and establishes the main factors that affected these changes. Conclusions and Relevance. The article concludes that during the study period, the key financial stability indicators of the leading public oil and gas companies have deteriorated. However, the global financial crisis as a whole has not had a significant negative impact on the financial soundness of the public oil and gas sector. The results of the study can be used to evaluate, forecast, and develop measures to increase the financial stability of public oil and gas companies.

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

2020 ◽  
Vol 26 (8) ◽  
pp. 1870-1892
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Market Valuation ◽  
Gas Industry ◽  
Market Capitalization ◽  
Long Period ◽  
Main Factors ◽  
Economic Analyses ◽  
Oil And Gas Companies ◽  
Total Market

Subject. This article explores the market capitalization and value of the twenty five largest public oil and gas companies between 2006 and 2018. Objectives. The article aims to define market capitalization and value of the largest public oil and gas companies, identify key trends in their changes within the study period, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization. Results. The article describes changes in the market capitalization and value of the world's leading public oil and gas corporations and identifies the main factors that affected these changes. Conclusions and Relevance. The article concludes that the total market valuation of the leading public oil and gas corporations has not changed significantly over a long period. But the oil and gas industry has increased the debt load, which negatively affects the companies' market capitalization. The results of the study can be used to evaluate, forecast, and develop measures to create market cap and value of public oil and gas companies.

Analyzing the liquidity ratios of the world's leading public oil and gas corporations

2020 ◽  
Vol 26 (7) ◽  
pp. 1571-1589 ◽  
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Oil And Gas ◽  
Comprehensive Analysis ◽  
Annual Reports ◽  
Main Factors ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the key liquidity figures of the twenty five largest public oil and gas companies between 2006 and 2018. Objectives. The article aims to determine the current values of the key liquidity figures of the largest public oil and gas companies, identify key trends in their changes within the study period, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization. Results. Based on a comprehensive analysis of the twenty five oil and gas companies' annual reports, the article identifies trends in the changes in the key liquidity indexes in the industry's public sector, and establishes the main factors that affected these changes. Conclusions and Relevance. The largest public oil and gas companies are able to maintain their own liquidity in times of crisis, even. The industry pays the most attention to increasing the instant liquidity ratios. The results of the study can be used to evaluate, forecast, and develop measures to enhance the liquidity of public oil and gas companies.

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