The rise of shareholder activism—what you need to know

2015 ◽  
Vol 55 (2) ◽  
pp. 448
Author(s):  
Mark Malinas
Keyword(s):  
Oil And Gas ◽  
Shareholder Activism ◽  
Share Price ◽  
Strategic Direction ◽  
The Us ◽  
Dramatic Rise ◽  
Under Performing ◽  
And Performance ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The past few years have seen a dramatic rise in shareholder activism in Europe and the US and it is a trend becoming more common in Australia. Companies operating in the oil and gas sector have been subject to particular attention and there are a growing number of examples of this in Australia. The targets of shareholder activism range in size and performance, but are often companies with perceived board weakness, those that are considered to adhere to outdated corporate governance, those whose strategic direction is in question or those that have an under-performing share price, though other factors can also be relevant. Using these issues or concerns as a pretext, activists are increasingly focused on using tactics that allow them to exert control or exercise influence to realise returns or agitate for change in companies that: have significant assets (such as oil and gas reserves) relative to their market value; have high costs, large capital expenditures and long revenue generation lead time (such as exploration projects); or, operate in low growth or fluctuating markets (such as with the price of oil and gas). Unsurprisingly, the oil and gas sector is being increasingly seen by certain funds and investors as fertile ground for shareholder activism. The Australian legal landscape also presents shareholders with a platform from which to exert influence. For instance: shareholders are able to requisition general meetings (and resolutions to be put to those meetings) if they hold sufficient shares and put the entire board up for re-election following the introduction of the two strikes rule; and, directors are required to adhere to statutory and common law duties in responding to shareholders. Shareholder activist campaigns are often played out in public and can be highly disruptive to companies’ operations. Accordingly, directors and senior management of oil and gas companies should be aware of shareholder activism in Australia and, in the broader interests of all shareholders and their company, consider how they should respond or be ready to respond. This may be done through various processes, including testing the company’s perceived weaknesses and addressing them and having a plan to address activism should it arise.

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.

FEATURES OF THE FORMATION OF AN INVESTMENT PORTFOLIO BY RUSSIAN COMPANIES IN THE OIL AND GAS SECTOR OF THE ECONOMY

2021 ◽  
Vol 1 (175) ◽  
pp. 161-166
Author(s):  
V.A. Agusev ◽  
Keyword(s):  
Oil And Gas ◽  
Investment Portfolio ◽  
Investment Projects ◽  
Foreign Companies ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The article discusses the main methods of forming an investment portfolio and examines the motives for partnerships with foreign companies. During the analysis of the activities of Russian oil and gas companies, the features of the formation of investment projects were revealed.

Comparative analysis of the efficiency of oil–producing companies in Russia and the world

2020 ◽  
Author(s):  
Arina E. Link ◽  
◽  
Mikhail V. Mishenin ◽  
Keyword(s):  
Comparative Analysis ◽  
Oil And Gas ◽  
Distinctive Features ◽  
Foreign Companies ◽  
The World ◽  
Tax Deductions ◽  
Cost Of Production ◽  
Oil And Gas Companies ◽  
First Time ◽  
Oil And Gas Sector

The study compares domestic and foreign companies in the oil and gas sector for the first time and identifies the distinctive features of each group. The results of calculations showed that the profit of any large oil and gas company is affected by revenue, cost of production and the amount of tax deductions. Moreover, the refinancing rate of the country where the company is registered is important for the activities of oil and gas companies.

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.

scholarly journals Desenvolvimento de Framework para elaboração de rankings e análises dos relatórios de sustentabilidade de companhias integradas de óleo e de gás com abordagem no GRI

ForScience ◽  
2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Ary Branco Adurens Júnior ◽  
Eduardo Christiano Cecone ◽  
Chang Chung Wei ◽  
Fernando Gasi ◽  
Douglas Alves Cassiano
Keyword(s):  
Oil And Gas ◽  
International Organization ◽  
Gaseous Emissions ◽  
Information Analysis ◽  
Emission Data ◽  
European Origin ◽  
Data Presentation ◽  
Sustainability Reports ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

O Global Report Initiative (GRI) é uma organização internacional, sem fins lucrativos, que disponibiliza dados de emissões e diretrizes para elaboração de relatórios de impacto na sustentabilidade em diversos segmentos industriais, como o setor de óleo e de gás. Entretanto, limita-se à disponibilização dos dados, não procedendo outras análises, no sentido de produzir informações mais elaboradas, como por exemplo, o estabelecimento de benchmarks. Neste sentido, o presente trabalho propõe um framework, visando a organizar as informações na elaboração de rankings das companhias integradas de óleo e gás, verificando-se as relações existentes entre informações de produção e emissões de gases, utilizando uma correlação produto-momento. Como resultado específico, obtiveram-se rankings relativos à produção e indicadores de emissões das companhias integradas de óleo e gás. Infere-se do estudo que as empresas deste segmento energético mais produtivas também são as que mais provocam emissões, e também que, empresas de origem europeia apresentam tendência a produzirem menos emissões que empresas originárias de outras partes do mundo. Com a análise das informações decorrentes do ranking obtido da aplicação do framework proposto, há a possibilidade de as empresas integradas do segmento de óleo e gás planejarem de forma mais assertiva suas atividades, no que tange a um posicionamento sustentável por parte delas.Palavras-chave: Emissões gasosas; Companhias integradas de óleo e gás; Ranqueamento. Global Report Initiative.Framework development for ranking elaboration and analysis of integrated oil and gas companies sustainability reports with GRI approachAbstractThe Global Report Initiative (GRI) is an international organization, non-profitable, that provides emission data and elaboration guidelines of sustainability reports for various industrial segments, such as the oil and gas sector. However, its limited to data presentation without any further analyzes being carried out aiming the production of more elaborated information as benchmark establishment. Therefore, in the present work, a own framework was proposed to organize the information in the elaboration of rankings of the integrated companies of oil and gas, verifying the existing relations between the production information and emissions of gases using a product-moment correlation. As a result, production and emission indicator rankings of integrated oil and gas companies were obtained. It is inferred from the study that the most productive companies in this energy segment are also the ones that cause the most emissions, and that companies of European origin tend to produce less emissions than companies from other countries. With the information analysis derived from the ranking obtained from the application of the proposed framework, it is possible for integrated oil and gas companies to more assertively plan their activities, aiming at their sustainable positioning.Keywords: Gaseous emissions. Integrated oil and gas companies. Rankings. Global Report Initiative.

scholarly journals EDITORIAL

2012 ◽  
Vol 11 (1-2) ◽  
pp. 02
Author(s):  
J. V. C. Vargas
Keyword(s):  
Renewable Energy ◽  
Solar Energy ◽  
Oil And Gas ◽  
Photovoltaic Performance ◽  
Proton Exchange ◽  
Solar Panels ◽  
The Us ◽  
Efficiency Increase ◽  
Computer Processor ◽  
Oil And Gas Sector

Around the end of the twentieth century, nanotechnology appeared to be the new breakthrough, after the internet, for example. At that time, more efficient and affordable solar cells, green chemistry, quantum computing, lightweight composite aircraft, cell-size robots for medical applications were expected to be available soon. When the financial milestones did not become real, investors got disappointed and decided to rethink their plans. Yet today the perspectives are surprisingly upbeat. Currently, it is well known that restructuring matter at the nanoscale chemical and thermophysical properties change, so that systems that have no purpose at the macroscale, at the nanoscale become useful. In fact, several applications have already begun to appear such as in the oil and gas sector components, structured coatings, nanofluids, new cancer treatment drugs, and nanoviricides. Computer processor and memory manufacturers are already producing products with 32 nanometer components, so that the first commercial memristor (memory resistor) is expected to be launched at the end of 2013. In the renewable energy area, just to cite a few examples, low energy consumption nanostructured inexpensive LEDs are being developed to potentially last for years, carbon nanotubes have been used to drastically reduce precious materials content in proton-exchange fuel cell (PEMFC) electrodes and increase efficiency, and nanostructured thin films are being developed to boost photovoltaic performance and reduce costs, which demonstrated a 23.5 % efficient flexible solar panel operating a 2 MW pilot line at the National Renewable Energy Laboratory in the US. In comparison to market available 10 % efficient solar panels, this is a remarkable efficiency increase in capturing solar energy for practical use due to nanotechnology. This nanotechnological achievement challenges scientists to possibly change the currently fuel (fossil and bio) energy driven world into a solar energy driven one.

scholarly journals The use of revenue-based multipliers for the appraisal of oil and gas companies

2020 ◽  
Vol 25 (4) ◽  
pp. 387-415
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Related Factor ◽  
Corporate Value ◽  
Market Capitalization ◽  
Debt Burden ◽  
Significant Difference ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Subject. The article focuses on ratios of the market capitalization and corporate value to revenue of the twenty five leading public companies in the oil and gas sector within 2008 through 2018. Objectives. The study is to trace key trends in ratios of corporations in the oil and gas. I also determine what caused such a transformation for the analyzable period and whether the multipliers are applicable to appraise the corporate value in the oil and gas sector. Methods. The study is based on methods of comparative and financial-economic analysis, summarizing financial reporting data. Results. Revenue-based ratios are found to be applicable to appraise the value of oil and gas companies. Although having the similar composition of net revenue, companies with better profitability have higher multipliers. Integrated corporations were found to have lower multipliers than independent companies. The study shows that the import-based petrochemical production tends to have the lower value than that using domestic resources. The multiplier goes down if the company's revenue includes proceeds from the resale. As the debt burden grows, the multiplier decreases. Therefore, considering the significant difference in the debt burden, the multiplier should better include the corporate value instead of the market capitalization, since the corporate value comprises the net debt. I also discovered the country-related factor, which should be taken into consideration when using the multiplier. Conclusions and Relevance. The use of revenue-based multipliers requires the thorough analysis of the financial and business operations of companies. However, it is quite acceptable when the overall profitability decreases and the debt burden increases in the public segments of the global oil and gas industry. The findings can be used to appraise the value of oil and gas assets as part of the comparative approach and decide on actions for raising the market capitalization of public oil and gas corporations.

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