TY - JOUR

T1 - Integrated indicators of companies' efficiency in petroleum industry

AU - Komarova, Anna

AU - Filimonova, Irina

AU - Nemov, Vasiliy

AU - Provornaya, Irina

N1 - Funding Information: The research was financially supported by RFBR (project 18-010-01032) and grant of the President of RF (project МК-1459.2019.6, project Nsh-2571.2020.6). Publisher Copyright: © 2020 International Multidisciplinary Scientific Geoconference. All rights reserved. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.

PY - 2020

Y1 - 2020

N2 - Petroleum companies have leading roles in modern economy, as their financial and economic performance to a large extent form the economies of petroleum producing countries. With the background of highly volatile petroleum markets and increasing inter-fuel competition, it is essential for the companies to find an optimal strategy for the long-term sustainable growth. The research aims a comprehensive study of set of indicators reflecting the performance of companies in the oil and gas industry (on an example of Russia). At the first stage of the research overall dynamics of the financial performance of companies is analyzed. Main influencing factors, such as resource base, foreign trade, organizational and institutional structure are revealed. Then main financial indicators for the companies are evaluated and main trends are analyzed. At the final stage based on the calculated integrated indicators companies are divided into groups by their overall development strategies. The methods of the research include evaluation of the main financial indicators, such as profitability of sales, tax burden, ratio of revenue to production, ratio of operating expenses to production, share of net profit in ton of oil produced, economic efficiency of capital investments, etc.; as well as approaches for formation of an integrated indicator. The results of the study allow a comparative analysis of the performance of oil and gas companies taking into account the time factor, as well as calculate the integral values for the industry as a whole. The authors identified three development strategies for Russian oil and gas companies, reflecting a predominant focus on the processing sector and the supply of final products in Russia and abroad or on export of raw materials, as well as a strategy of the balance structure of production and financial indicators. The first group is characterized by high operating expenses, a relatively low level of tax deductions and profits. The second group shows by relatively low transaction costs, as well as a high level of taxation and profit. The last group is characterized by a fairly balanced structure of operating payments in the structure of revenue, tax payments, net profit. Dynamic analysis of the integrated indicator allows for recommendation on companies policy for sustainable growth.

AB - Petroleum companies have leading roles in modern economy, as their financial and economic performance to a large extent form the economies of petroleum producing countries. With the background of highly volatile petroleum markets and increasing inter-fuel competition, it is essential for the companies to find an optimal strategy for the long-term sustainable growth. The research aims a comprehensive study of set of indicators reflecting the performance of companies in the oil and gas industry (on an example of Russia). At the first stage of the research overall dynamics of the financial performance of companies is analyzed. Main influencing factors, such as resource base, foreign trade, organizational and institutional structure are revealed. Then main financial indicators for the companies are evaluated and main trends are analyzed. At the final stage based on the calculated integrated indicators companies are divided into groups by their overall development strategies. The methods of the research include evaluation of the main financial indicators, such as profitability of sales, tax burden, ratio of revenue to production, ratio of operating expenses to production, share of net profit in ton of oil produced, economic efficiency of capital investments, etc.; as well as approaches for formation of an integrated indicator. The results of the study allow a comparative analysis of the performance of oil and gas companies taking into account the time factor, as well as calculate the integral values for the industry as a whole. The authors identified three development strategies for Russian oil and gas companies, reflecting a predominant focus on the processing sector and the supply of final products in Russia and abroad or on export of raw materials, as well as a strategy of the balance structure of production and financial indicators. The first group is characterized by high operating expenses, a relatively low level of tax deductions and profits. The second group shows by relatively low transaction costs, as well as a high level of taxation and profit. The last group is characterized by a fairly balanced structure of operating payments in the structure of revenue, tax payments, net profit. Dynamic analysis of the integrated indicator allows for recommendation on companies policy for sustainable growth.

KW - Balanced development

KW - Economical efficiency

KW - Financial indicator

KW - Integrated indicator

KW - Petroleum company

UR - http://www.scopus.com/inward/record.url?scp=85099746460&partnerID=8YFLogxK

U2 - 10.5593/sgem2020/5.2/s21.038

DO - 10.5593/sgem2020/5.2/s21.038

M3 - Conference article

AN - SCOPUS:85099746460

VL - 2020-August

SP - 309

EP - 316

JO - International Multidisciplinary Scientific GeoConference Surveying Geology and Mining Ecology Management, SGEM

JF - International Multidisciplinary Scientific GeoConference Surveying Geology and Mining Ecology Management, SGEM

SN - 1314-2704

IS - 5.2

T2 - 20th International Multidisciplinary Scientific Geoconference: Ecology, Economics, Education and Legislation, SGEM 2020

Y2 - 18 August 2020 through 24 August 2020

ER -