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Economic Analysis: Theory and Practice
 

Specific financial and stock indicators as a sign of investment attractiveness of domestic vertically integrated companies

Vol. 20, Iss. 3, MARCH 2021

Received: 5 November 2020

Received in revised form: 26 November 2020

Accepted: 14 December 2020

Available online: 30 March 2021

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: G32, L25, L71, M41, O12

Pages: 529–553

https://doi.org/10.24891/ea.20.3.529

Oleg V. SHIMKO Institute of Economics of Russian Academy of Sciences (IE RAS), Moscow, Russian Federation
shima_ne@mail.ru

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

Subject. The article considers the specific financial and stock market indicators of the 25 biggest oil and gas companies from 2006 to 2018.
Objectives. The aim is to identify key trends in the specific financial and stock market indicators of leading publicly traded oil and gas companies and reveal the factors that have led to this transformation, during the study period.
Methods. The study draws on methods of comparative, financial, and economic analysis, as well as generalization of materials of consolidated financial statements.
Results. The study established that the prolonged industry crisis had the strongest impact on the group’s performance, and independent companies were the most affected. Negative trends were evident in the period of high oil prices, when specific capital expenditures in the exploration and production sector increased, while profitability and market appreciation of the barrel of production declined. The industry crisis only aggravated the situation in the industry. It was revealed that the processing of purchased raw materials, as well as the resale of products, may have a significant impact on the specific net revenue from core activities. The study identified that having a serious difference in the level of debt, it is better to use an indicator of company's market value, rather than capitalization.
Conclusions. There is a decrease in the specific profitability of hydrocarbon production in the stock market segment of the industry. It has an adverse effect on the market attractiveness of the oil and gas sector.

Keywords: production, proved reserves, revenue, net profit, market capitalization

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