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Economic Analysis: Theory and Practice
 

Figures of Consolidated Income Statement of the World's Leading Publicly Traded Oil and Gas Corporations

Vol. 21, Iss. 7, JULY 2022

Received: 28 February 2022

Received in revised form: 12 March 2022

Accepted: 23 March 2022

Available online: 28 July 2022

Subject Heading: ANALYSIS OF INCOME, PROFITS AND COSTS

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

Pages: 1349–1363

https://doi.org/10.24891/ea.21.7.1349

Oleg V. SHIMKO Center for Innovative Economics and Industrial Policy, Institute of Economics of Russian Academy of Sciences (IE RAS), 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 twenty five leading listed oil and gas companies from 2006 through 2018.
Objectives. The purpose is to determine the current values of the main components of consolidated income statements of leading publicly traded oil and gas companies, to identify key trends in their change during the studied period, and to establish the factors that led to changes.
Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated income statements.
Results. The paper determines dynamics of changes in the value of key indicators and their correlation in the structure of income statements in the stock market sector of the industry, establishes the main factors that contributed to this transformation, based on the results of a comprehensive analysis of annual reports of 25 oil and gas companies. It shows a decrease in the sectoral level of net income of shareholders within the framework of the studied period, which occurred against the background of an increase in net revenue from core activities. The main factor behind such changes in the structure of the income statement was the increase in operating expenses outpacing revenue, primarily due to depreciation, depletion and amortization of assets. The strengthening of the role of interest expenses occurred in the stock market sector after the sectoral crisis. The overall reduction in income tax burden is a positive development. A return to the previous structure is possible only with a significant increase in oil prices, a reduction in operating costs, and a decrease in excises, duties and all other taxes not related to income tax.
Conclusions. Net income of companies in the stock market sector of the oil and gas industry is decreasing due to an increase in expenses for core activities, which are faster than the growth of the corresponding revenue.

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

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