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.

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.

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.

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.

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 The analysis of correlation between dividend payments and market capitalization of Russian oil and gas companies

2020 ◽  
pp. 87-92
Author(s):  
М.А. Бродовая ◽  
Р.А. Панфилова ◽  
А.В. Тарасова
Keyword(s):  
Correlation Coefficient ◽  
Oil And Gas ◽  
Market Value ◽  
Oil And Gas Industry ◽  
Internal Factors ◽  
Gas Industry ◽  
Market Capitalization ◽  
Dividend Payments ◽  
Total Correlation ◽  
Oil And Gas Companies

В статье исследуются особенности дивидендных выплат российских нефтегазовых компаний и их взаимосвязь с их рыночной капитализацией. Целью работы является выявление отсутствия или наличия взаимосвязи между вышеупомянутыми характеристиками, а также определение направления и тесноты связи в случае ее существования. Исследование проводилось посредством анализа статистики и отчетностей крупнейших российских компаний нефтегазовой отрасли, а также с помощью проведения корреляционно-регрессионного анализа зависимости дивидендных выплат и рыночной стоимости таких компаний, как: «Газпром», НК «ЛУКойл», НК «Роснефть», «Сургутнефтегаз» и «Татнефть». В результате исследования было выявлено наличие прямой достаточно тесной связи между вышеупомянутыми показателями, а также определен перечень внешних и внутренних факторов, которые влияют на отклонение коэффициента корреляции каждой компании от общего. This article explores the features of dividend payments by Russian oil and gas companies and the connection between dividends and market capitalization. The aim of the work is to identify the absence or existence of the connection between the mentioned above characteristics and in the case of its existence to determine the direction and the closeness of the correlation. The research has been done with the analysis of statistics and reports of the largest Russian companies in the oil and gas industry and the correlative-regression analysis of the connection between dividend payments and the market value of such companies as: Gazprom, LUKoil, Rosneft, Surgutneftegas and Tatneft. As a result there is a straightforward and close enough correlation between dividends and capitalization of the companies. Moreover, a list of external and internal factors that affect the deviation of each company's correlation coefficient from the total correlation coefficient was identified.

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.

scholarly journals Assessment of the Impact of the Adverse Economic Geopolitical Environment on the Worth of Russian Oil and Gas Companies

2018 ◽  
Vol 8 (2) ◽  
pp. 30-43 ◽  
Author(s):  
V. S. Lipatnikov ◽  
K. A. Kirsanova
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Market Capitalization ◽  
The Cost ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Company

The relevance of the chosen topic is connected to the fact that in the conditions of value-based management, market capitalization acts as a key indicator of the company efficiency. At the present time, when the Russian oil and gas industry has become the object of international sectoral sanctions, the identification of the impact of these sanctions on the domestic oil and gas companies’ value is of great practical importance. The article considers the cost of oil and gas companies and the impact of sectoral sanctions and negative dynamics of oil prices. The study was conducted using econometric modeling tools. For analysis 4 of the oil company with the largest market share, namely PJSC “Rosneft Oil Company”, PJSC “LUKOIL”, JSC “Gazprom Neft” and PJSC “Tatneft”, which in the aggregate represent 62% of the entire Russian oil industry, were selected. The features of valuation of Russian oil and gas companies are covered. The sanctions in the oil and gas industry of the Russian Federation are considered, the consequences of their introduction and the fall of the world oil price are analysed. The analysis to determine the impact of the cost of oil and gas companies from international sanctions and oil prices. It was found that in the oil industry market capitalization depends directly on the price of oil, and in the gas industry this impact is absent. It was discovered that due to the low level of oil prices, the sanctions did not have a significant influence on the cost of oil and gas companies. 

EVALUATION OF THE ABSOLUTE RESULTS OF THE LEADING COMPANIES OF THE OIL AND GAS COMPLEX: PROBLEMS AND PROSPECTS

2021 ◽  
Vol 3 (11) ◽  
pp. 6-12
Author(s):  
Lyudmila V. Goloshchapova ◽  
◽  
Elena V. Maltseva ◽  
Keyword(s):  
Oil And Gas ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Financial Statements ◽  
The State ◽  
Gas Industry ◽  
Factors Affecting ◽  
Complex Problems ◽  
The Absolute ◽  
Statistical Indicators

The study is devoted to the analysis of the balance sheet profit of the leading companies in the oil and gas industry. The types of profits were considered, as well as the dynamics of the changes in indicators affecting their formation were analyzed. In addition, the article considers the composition and struc-ture of the balance sheet profit, factors affecting its size. Based on the financial statements of the companies, an idea of the state of profit in the companies «Rosneft», «Lukoil», «Gazprom» and «Tatneft» has been com-piled. The paper analyzes quantitative statistical indicators that reflect the results achieved from 2016–2020.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

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