Oil & Gas

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Oil & Gas

  1. 1. Business AccountingFinal Project – Oil & Gas Marcelo Rigoni Ed Walker
  2. 2. Contents Oil Industry Overview BP Exxon Mobil PetroChina Chevron Texaco Petrobras
  3. 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. 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.
  5. 5. World Oil Reserves 6% 2% 4% 66% 4% 12% 6%
  6. 6. World Oil Consumption
  7. 7. World Oil - Flow
  8. 8. Oil Industry PerformanceNYSE 100 80Share 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. 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. 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. 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. 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. 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. 14. Oil IndustryNet Sales Comparison 2003 2003 net sales $ billion 300 250 200 150 100 50 0 EXXON M OBIL BP PLC CHEVRON US PETROBRAS PETROCHINA
  15. 15. Profitability RatiosPROFITABILITY EXXON MOBIL BP PLC CHEVRON U.S.RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003profit margin 0,07 0,06 0,09 0,02 0,05 0,06 0,03 0,01 0,06return on assets 0,11 0,08 0,12 0,03 0,05 0,07 0,05 0,02 0,09return on equity 0,21 0,15 0,24 0,07 0,13 0,16 0,10 0,04 0,20return on invested capital 0,36 0,28 0,42 0,17 0,41 0,45 0,27 0,11 0,37PROFITABILITY PETROBRAS PETROCHINA INDUSTRYRATIOS 2001 2002 2003 2001 2002 2003 AVERAGEprofit margin 0,10 0,07 0,15 0,22 0,19 0,25 0,10return on assets 0,09 0,07 0,12 0,12 0,10 0,15 0,09return on equity 0,26 0,25 0,38 0,21 0,17 0,23 0,19return on invested capital 0,67 0,98 1,11 0,32 0,24 0,35 0,43
  16. 16. Activity RatiosACTIVITY EXXON MOBIL BP PLC CHEVRON U.S.RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003asset turnover 1,49 1,34 1,42 1,36 1,14 1,28 1,37 1,28 1,49receivables turnover 10,92 9,66 10,15 6,58 5,44 5,71 12,83 10,55 12,52average colletion period 33 38 36 56 67 64 28 35 29inventory turnover 14,12 11,50 15,26 19,62 17,77 18,69 13,50 14,66 26,67inventory period in days 26 32 24 19 21 20 27 25 14working capital turnover 38,35 38,29 38,89 -116,46 -131,47 175,79 -45,66 -44,75 200,43ACTIVITY PETROBRAS PETROCHINA INDUSTRYRATIOS 2001 2002 2003 2001 2002 2003 AVERAGEasset turnover 0,93 1,03 0,80 0,57 0,54 0,60 1,11receivables turnover 8,42 8,53 9,32 5,49 7,30 7,12 8,70average colletion period 43 43 39 66 50 51 45inventory turnover 9,51 9,04 10,14 3,51 3,40 3,54 12,73inventory period in days 38 40 36 104 107 103 42working capital turnover 5,44 6,92 8,60 -101,99 -29,56 -14,45 2
  17. 17. Solvency andLeverage RatiosSOLVENCY AND EXXON MOBIL BP PLC CHEVRON U.S.LEVERAGE RATIOS 2001 2002 2003 2001 2002 2003 2001 2002 2003current ratio 1,18 1,15 1,20 0,96 0,97 1,08 0,89 0,89 1,21quick ratio 0,92 0,91 0,96 0,76 0,75 0,85 0,64 0,76 1,04cash/ acid test ratio 0,22 0,22 0,28 0,04 0,03 0,04 0,10 0,15 0,26debt ratio 0,49 0,51 0,48 0,52 0,57 0,56 0,56 0,59 0,55debt-to-equity ratio 0,96 1,05 0,94 1,07 1,35 1,27 1,28 1,45 1,24interest coverage 85,26 45,52 158,78 8,04 11,02 22,39 11,10 8,46 28,11DU PONT MODEL 0,21 0,15 0,24 0,07 0,13 0,16 0,10 0,04 0,20SOLVENCY AND PETROBRAS PETROCHINA INDUSTRYLEVERAGE RATIOS 2001 2002 2003 2001 2002 2003 AVERAGEcurrent ratio 1,78 1,47 1,60 0,97 0,84 0,76 1,13quick ratio 1,48 1,10 1,33 0,66 0,52 0,50 0,88cash/ acid test ratio 0,91 0,48 0,86 0,16 0,14 0,12 0,27debt ratio 0,64 0,71 0,68 0,40 0,37 0,35 0,53debt-to-equity ratio 1,78 2,44 2,13 0,66 0,59 0,53 1,25interest coverage - 5,18 8,04 19,70 20,68 46,71 34,21DU PONT MODEL 0,26 0,25 0,38 0,21 0,17 0,23 0,19
  18. 18. Thank to you to tolerate thisCrocodile Hunter presentation

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