2. Contents
Oil Industry Overview
BP
Exxon Mobil
PetroChina
Chevron Texaco
Petrobras
3. Oil Industry Overview
The price of Crude Oil drives the Industry
In late 90s price dropped to $10/barrel due to Asian
downturn
Small companies bankrupted and large companies
merged
4. Oil Industry Overview
Exploration stopped and oil service companies suffered
Reviving global economy, increased energy demand
and political turmoil have seen Crude hit $55/barrel
The higher prices have seen higher profits for
producers, refiners, pipelines, etc.
8. Oil Industry Performance
NYSE
100
80
Share Price (USD)
60
40
20
0
Jan-00 Jul-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04
Date
BP Exxon PetroChina Chevron
9. Head Office Irvine, Texas, USA
Incorporated in 1882
Exxon and Mobile merged (99)
Operates exploration, production and
petrochemicals businesses
Production capacity of 6.3 million barrels/day
10. Head Office in London, England
Incorporated in 1909
Four Main Businesses: Exploration and
Production; Gas, Power and Renewables;
Refining and Marketing; and Petrochemicals
Recent Mergers: Amoco (98), Atlantic Richfield
(00), Tyumen (03)
Produces 1.2 million barrels/day
11. Head Office San Ramon, California, USA
Incorporated in 1876
Broad range of petroleum products
Merged with Texaco in 2001
Production capacity 2.7 million barrels/day
12. Head Office Rio de Janeiro, Brazil
Incorporated 1953
Operates in four businesses; exploration,
refinery, gas & international
15th largest in the world
Production capacity of 2 million barrels/day
13. Head Office Beijing, China
Incorporated 1988
Broad range of petroleum & natural gas
activities
Acquired 50% equity in Amerada Hess
Indonesia (03) with huge oil reserves
Imported 125 million barrels in 2003
14. Oil Industry
Net Sales Comparison 2003
2003 net sales
$ billion
300
250
200
150
100
50
0
EXXON M OBIL BP PLC CHEVRON US PETROBRAS PETROCHINA
15. Profitability Ratios
PROFITABILITY EXXON MOBIL BP PLC CHEVRON U.S.
RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003
profit margin 0,07 0,06 0,09 0,02 0,05 0,06 0,03 0,01 0,06
return on assets 0,11 0,08 0,12 0,03 0,05 0,07 0,05 0,02 0,09
return on equity 0,21 0,15 0,24 0,07 0,13 0,16 0,10 0,04 0,20
return on invested capital 0,36 0,28 0,42 0,17 0,41 0,45 0,27 0,11 0,37
PROFITABILITY PETROBRAS PETROCHINA INDUSTRY
RATIOS 2001 2002 2003 2001 2002 2003 AVERAGE
profit margin 0,10 0,07 0,15 0,22 0,19 0,25 0,10
return on assets 0,09 0,07 0,12 0,12 0,10 0,15 0,09
return on equity 0,26 0,25 0,38 0,21 0,17 0,23 0,19
return on invested capital 0,67 0,98 1,11 0,32 0,24 0,35 0,43
16. Activity Ratios
ACTIVITY EXXON MOBIL BP PLC CHEVRON U.S.
RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003
asset turnover 1,49 1,34 1,42 1,36 1,14 1,28 1,37 1,28 1,49
receivables turnover 10,92 9,66 10,15 6,58 5,44 5,71 12,83 10,55 12,52
average colletion period 33 38 36 56 67 64 28 35 29
inventory turnover 14,12 11,50 15,26 19,62 17,77 18,69 13,50 14,66 26,67
inventory period in days 26 32 24 19 21 20 27 25 14
working capital turnover 38,35 38,29 38,89 -116,46 -131,47 175,79 -45,66 -44,75 200,43
ACTIVITY PETROBRAS PETROCHINA INDUSTRY
RATIOS 2001 2002 2003 2001 2002 2003 AVERAGE
asset turnover 0,93 1,03 0,80 0,57 0,54 0,60 1,11
receivables turnover 8,42 8,53 9,32 5,49 7,30 7,12 8,70
average colletion period 43 43 39 66 50 51 45
inventory turnover 9,51 9,04 10,14 3,51 3,40 3,54 12,73
inventory period in days 38 40 36 104 107 103 42
working capital turnover 5,44 6,92 8,60 -101,99 -29,56 -14,45 2
17. Solvency and
Leverage Ratios
SOLVENCY AND EXXON MOBIL BP PLC CHEVRON U.S.
LEVERAGE RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003
current ratio 1,18 1,15 1,20 0,96 0,97 1,08 0,89 0,89 1,21
quick ratio 0,92 0,91 0,96 0,76 0,75 0,85 0,64 0,76 1,04
cash/ acid test ratio 0,22 0,22 0,28 0,04 0,03 0,04 0,10 0,15 0,26
debt ratio 0,49 0,51 0,48 0,52 0,57 0,56 0,56 0,59 0,55
debt-to-equity ratio 0,96 1,05 0,94 1,07 1,35 1,27 1,28 1,45 1,24
interest coverage 85,26 45,52 158,78 8,04 11,02 22,39 11,10 8,46 28,11
DU PONT MODEL 0,21 0,15 0,24 0,07 0,13 0,16 0,10 0,04 0,20
SOLVENCY AND PETROBRAS PETROCHINA INDUSTRY
LEVERAGE RATIOS 2001 2002 2003 2001 2002 2003 AVERAGE
current ratio 1,78 1,47 1,60 0,97 0,84 0,76 1,13
quick ratio 1,48 1,10 1,33 0,66 0,52 0,50 0,88
cash/ acid test ratio 0,91 0,48 0,86 0,16 0,14 0,12 0,27
debt ratio 0,64 0,71 0,68 0,40 0,37 0,35 0,53
debt-to-equity ratio 1,78 2,44 2,13 0,66 0,59 0,53 1,25
interest coverage - 5,18 8,04 19,70 20,68 46,71 34,21
DU PONT MODEL 0,26 0,25 0,38 0,21 0,17 0,23 0,19
18. Thank to you to tolerate this
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