Assessing the capitalization of oil and gas companies

2021 ◽  
Vol 14 (2) ◽  
pp. 141-155
Author(s):  
Semen A. GORSHKOV
Keyword(s):  
Oil And Gas ◽  
Investment Decisions ◽  
Fair Value ◽  
Present Stage ◽  
Scientific Methods ◽  
Market Capitalization ◽  
Business Results ◽  
Fictitious Capital ◽  
General Scientific ◽  
Oil And Gas Companies

Subject. The article considers the capitalization of oil and gas companies. Objectives. The purpose is to research and evaluate the capitalization of the said companies. Methods. The study rests on general scientific methods of analysis. Results. The paper formulates the concept of capitalization as the most important result of the economic efficiency of production, investment attractiveness, and prospects for the development of corporation's business. It shows that the efficiency of using available resources is a crucial factor for capitalization. It considers the opportunities to single out fictitious value in market capitalization, using the fair value calculation method. This enables investors to make more informed investment decisions. The paper also identifies problems related to capitalization growth in the oil and gas business, and gives recommendations for its improvement. Conclusions. Capitalization growth should be seen as the main goal of sustainable development of companies. The concept of market capitalization should be tied to the assessment of economic performance. At the present stage, the paper reveals that the market capitalization index is away from actual business results, with the accumulation of fictitious capital in value.

scholarly journals The Future of Russian Arctic Oil and Gas Projects: Problems of Assessing the Prospects

2021 ◽  
Vol 9 (5) ◽  
pp. 528
Author(s):  
Amina Chanysheva ◽  
Alina Ilinova
Keyword(s):  
Decision Making ◽  
Oil And Gas ◽  
The Arctic ◽  
Russian Arctic ◽  
Scientific Methods ◽  
General Scientific ◽  
Step Algorithm ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Oil And Gas Companies

The development of Arctic marine resources is currently the focus of the world’s largest oil and gas companies, which is due to the presence of significant hydrocarbon reserves. However, the decision-making process for implementing offshore oil and gas projects in the Arctic is highly uncertain and requires consideration of many factors. This study presents a comprehensive approach to evaluating the prospects of oil production on the Russian Arctic shelf. It is based on a specific methodology which involves expert forecasting methods. We analyze the current conditions and key factors and indicators, focusing on oil prices and quality of technologies that could influence the decision-making in the oil and gas company concerning Arctic offshore fields’ development. We use general scientific methods—analysis, synthesis, classification and systematization—and propose a method for assessing the prospects of Arctic projects which is based on a three-step algorithm. Together with practical tools presented in the article, it will support decision-making on the project initiation and the development of a particular field.

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.

ASYMMETRIC INTERDEPENDENCE AS A BASIS FOR FINANCIAL AND ECONOMIC COOPERATION IN MODERN CONDITIONS

2020 ◽  
Vol 10 (8) ◽  
pp. 1477-1488
Author(s):  
R.V. Ozarnov ◽  
Keyword(s):  
Economic Cooperation ◽  
Raw Material ◽  
Present Stage ◽  
Scientific Methods ◽  
Economic Relations ◽  
Trade Model ◽  
National Currencies ◽  
The Face ◽  
General Scientific ◽  
The One

The article is devoted to the study of the theoretical and methodological foundations for the development of financial and economic cooperation between countries at the present stage, as well as the features of financial and economic relations diversification in order to reduce the asymmetric interdependence of countries in the face of increasing global imbalances, increased volatility of world financial markets, and the COVID-19 pandemic. The subject of this research is economic relations arising in the process of interaction between countries both on a bilateral basis and in a multilateral format. The paper deals with Russian-Chinese cooperation. On the one hand, the complementarity of the basic sectors of the economy of the two countries objectively contributes to increasing cooperation and trade. On the other hand, the asymmetric interdependence of Russia and its foreign trade partners, in particular China, contributes to the conservation of an archaic trade model based on Russian raw material export and Chinese manufacturing products. Methods for diversifying financial and economic relations are proposed, consisting in expanding the flows of foreign direct investment, using and developing technical and innovative progress, reducing transaction costs, trade and investment barriers, deepening Russian-Chinese cooperation within the BRICS, SCO and other organizations and expanding the scope of using national currencies in mutual settlements. The research is based on general scientific methods of cognition, such as analysis, synthesis, comparison, graphic interpretation of statistical information, time series. On the basis of the study, the author concluded that diversification of financial and economic relations helps to reduce the asymmetric interdependence of countries at the present stage. The novelty of the article lies in the substantiation of the phenomenon of asymmetric interdependence as a method for studying the problems and trends of financial and economic cooperation between countries, highlighting the drivers of diversification, which allows reducing asymmetric interdependence. On the basis of a comparative statistical analysis, the tendency of reorientation of Russia’s foreign economic activity towards Asian markets, in particular, the PRC market, has been confirmed.

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.

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 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.

Cost estimates in designing objects at the modern stage of civil shipbuilding development in Russia: Problems and prospects

2021 ◽  
Vol 27 (10) ◽  
pp. 2314-2327
Author(s):  
Vasilii S. DOSIKOV ◽  
Viktor A. KALMYKOV
Keyword(s):  
Cost Estimation ◽  
Information Technologies ◽  
Present Stage ◽  
Cost Estimating ◽  
Cost Estimates ◽  
Scientific Methods ◽  
General Scientific ◽  
The Cost ◽  
Cost Of Construction

Subject. The article addresses cost estimation of designed facilities construction in domestic civil shipbuilding. Objectives. The purpose is to consider the key problems and contradictions in the cost estimating process in this area. Methods. In the study, I apply general scientific methods. Results. The paper presents the analysis of major problems and contradictions in estimating the cost of construction of designed objects of domestic civil shipbuilding at the present stage of its development. I formulate my proposals for improving the system of industry pricing. Conclusions. The paper underpins the need to modernize industry pricing through the introduction of advanced information technologies.

Market attractiveness of oil and gas companies as a factor affecting the socio-economic development in regions of their business operations

2021 ◽  
Vol 20 (1) ◽  
pp. 124-141
Author(s):  
Sergei G. MARICHEV
Keyword(s):  
Economic Development ◽  
Oil And Gas ◽  
Global Market ◽  
Market Capitalization ◽  
Oil Refineries ◽  
Oil Companies ◽  
Socio Economic Development ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Company

Subject. I address the impact of market capitalization of oil and gas companies on their contribution to the socio-economic development of regions of presence. Objectives. The purpose is to determine to what extent the factor of high market capitalization of the oil company is crucial in the changing the market environment. Methods. The study draws on methods of economic and statistical analysis. Results. I considered the current state of the Russian oil industry in the context of tax maneuver, and the future evolution of the oil and gas sector from the perspective of government authorities’ desire to develop oil refineries. I performed the financial analysis of operations of two large regional oil companies, namely, Bashneft and Tatneft, examined their contribution to the regions of presence in accordance with the level of market capitalization and ownership structure. The paper highlights the key factors, influencing the contribution of companies to the socio-economic development of regions. Conclusions. In addition to the unfavorable global market conditions, changes in the taxation of oil companies in Russia in the form of tax maneuver are the additive factors that negatively affect the profitability of the industry as a whole. The growth of oil companies’ capitalization has a positive impact on their contribution to the development of regions of presence, depending on the specifics of equity structure. In the face of adverse external factors, the influence of high market capitalization of the oil company reduces drastically due to cumulative decline in business profitability.

scholarly journals Pedagogical stimulation of forming the readiness of future lawyers for legal activities: problem aspects and ways of their solution

2020 ◽  
Vol 8 (3) ◽  
pp. 4
Author(s):  
L. Yu. Naumova
Keyword(s):  
Systems Approach ◽  
Empirical Methods ◽  
Training Module ◽  
Methodological Issues ◽  
Present Stage ◽  
Scientific Methods ◽  
Complex Approach ◽  
General Scientific ◽  
Law Making ◽  
Stimulation Of

Introduction. At the present stage of the development of pedagogical science in the theory and methods of vocational education, the issues of studying the characteristics of the pedagogical process for preparing a modern lawyer remain unresolved, in psychological and pedagogical works there is no unambiguous idea of the nature and structure of the readiness of future lawyers for law-making activities, organizational and methodological issues. Problems of pedagogical stimulation of the formation of readiness of future lawyers for law-making activity are not comprehensively covered.Materials and Methods. The methodological basis of the study are: the activity approach (B.G. Ananyev, V.N. Batishchev, L.S. Vygotsky, A.N. Leontiev, S.L. Rubinstein, A.V. Petrovsky, N.V. Kuzmina, A.M. Novikov, M.S. Kagan and others); A complex approach (A.A. Verbitsky, E.G. Skibitsky); systems approach (I.V. Blauberg, P.C. Anokhin, V.N. Sadovsky, A.I. Uemov, B.G. Yudin, A.M. Novikov, N.V. Kuzmina, A.N. Leontiev, B.F. Lomov, S.L. Rubinstein and others); sign-contextual approach (A.A. Verbitsky, E.A. Sorokoumova, I.A. Zimnyaya, etc.); axiological (value) approach (O.G. Drobnitsky, M.S. Kagan, L.V. Baeva, V.S. Stepin, N.L. Khudyakova, M.S. Yanitsky, A.V. Kiryakova, N.D. Nikandrov et al.).To achieve the goal of research and solve the problems identified in the work, a set of complementary, interconnected and non-contradictory methods of scientific research: have been used a) general scientific methods; b) psychological and pedagogical methods c) practical empirical methods.Results. Pedagogical stimulation is understood as a purposeful, emotional and intellectual subjective process of inducing and activating the potential of students, using methods and means of external psychological and pedagogical influence aimed at achieving the planned result and increasing the efficiency of stimulated law-making activities. Consultation and a training module can be the means of pedagogical stimulation of the formation of the future lawyer’s readiness for law-making activity. The characteristics of the stages of the work and the results obtained are also widely represented. 

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