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Economic Analysis: Theory and Practice
 

Analyzing the figures of consolidated income statements of the world's biggest public oil and gas corporations

Vol. 19, Iss. 5, MAY 2020

Received: 2 March 2020

Received in revised form: 14 March 2020

Accepted: 30 March 2020

Available online: 28 May 2020

Subject Heading: ANALYSIS OF FINANCIAL CAPITAL

JEL Classification: G31, L25, L71, M41, O12

Pages: 885–904

https://doi.org/10.24891/ea.19.5.885

Shimko O.V. PAO Rubin Aviation Corporation, Balashikha, Moscow Oblast, Russian Federation
shima_ne@mail.ru

https://orcid.org/0000-0002-0779-7097

Subject. The article considers the main figures of consolidated income statements of 25 leading public oil and gas companies, from 2006 to 2018.
Objectives. The purpose is to determine the current values of the main components of consolidated income statements of leading public oil and gas companies, unveil key trends during the period under review.
Methods. I employ methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated income statements.
Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to capture changes in the main figures and their interrelation in the structure of consolidated income statements in the public sector of the industry. I also established the key factors that contributed to the changes.
Conclusions. The study revealed a decrease in the shareholders' net profit at the industry level, which occurred against the backdrop of a growth in net revenue from core activities. The main factor of such changes in the income statement structure was the increased expenses on core business, which were ahead of revenue, primarily due to depreciation, depletion and amortization of assets. A positive development was a general reduction in the tax burden on income. A return to the previous structure is possible only if there is a significant rise in oil prices, a reduction in expenses on core activities, and a decrease in excise taxes, duties and all other taxes not related to income tax.

Keywords: revenue, net income, income tax, interest expense, EBITDA

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