Posts tagged " petroleum "

ConocoPhillips (COP) Extended Graph analysis

March 14th, 2020 Posted by Extended Analysis No Comment yet

Company Profile

COP logo

ConocoPhillips is one of the largest American multinational energy Corporations engaged in the exploration, production, transportation and marketing of crude oil, gas, petroleum  and other products. ConocoPhillip is a public company traded as NYSE: COP. The company was founded in 1875 by Frank Phillips, headquartered in Houston Energy Corridor, Houston Texas, USA.

 

ConocoPhillips (COP) Extended Graph Analysis

1. COP CASH FLOW

COP CASH FLOW

2015 2016 2017 2018 2019 TTM
Net cash flow provided by operating activites 7,572,000,000 4,403,000,000 7,077,000,000 12,934,000,000 11,104,000,000 11,104,000,000
Net cash used for investing activities -8,655,000,000 -3,859,000,000 7,762,000,000 -3,843,000,000 -6,618,000,000 -6,618,000,000
Net cash provided by (used for) financing activities -1,429,000,000 764,000,000 -12,356,000,000 -9,359,000,000 -5,229,000,000 -5,229,000,000
Capital expenditure -10,050,000,000 -4,869,000,000 -4,591,000,000 -6,750,000,000 -6,636,000,000 -6,636,000,000
Free cash flow -2,478,000,000 -466,000,000 2,486,000,000 6,184,000,000 4,468,000,000 4,468,000,000
Working Capital -467,000,000 1,700,000,000 7,115,000,000 5,879,000,000 9,870,000,000 9,870,000,000

Facts:

  • Cash provided by operating activities was $11.104 billion in the trailing twelve months.
  • Cash used for investing activities were -$6.6 billion in the trailing twelve months.
  • Net cash used for financing activities were -$5 billion in the trailing twelve months.
  • Capital expenditures were -$6.6 billion in the trailing twelve months.
  • Free cash flow was $4.5 billion in the trailing twelve months.
  • Working capital was $9.87 billion in the trailing twelve months.

Explanation:

  • Cash provided by operating activities is erratic in movement in the last five years. It has a negative growth of 14% from 2018.
  • Cash used for investment activities are investment in property, plant and equipment.
  • Cash provided by financing activities are debt repayment, common stock repurchased and dividends paid.
  • Capital expenditures are investment in property, plant and equipment.
  • Free cash flow was erratic in movement in the last five years and has a negative growth of 28% from 2018.
  • Working capital grew 68% in the last five years.

Interpretation

The cash flow statements were stable although there was negative growth within five years period. The company has the ability to provide cash from operations in five years and has not seen any negative cash from operations in five years.

 

2. COP BALANCE SHEET

COP BALANCE SHEET

2015 2016 2017 2018 2019
Total cash 2,368,000,000 3,660,000,000 10,097,000,000 7,625,000,000 10,227,000,000
Current Assets 8,789,000,000 8,609,000,000 16,512,000,000 13,274,000,000 16,913,000,000
Net property, plant and equipment 66,446,000,000 58,331,000,000 45,683,000,000 45,698,000,000 42,269,000,000
Total non-current assets 88,695,000,000 81,163,000,000 56,850,000,000 56,706,000,000 53,601,000,000
Total assets 97,484,000,000 89,772,000,000 73,362,000,000 69,980,000,000 70,514,000,000
Current liabilities 9,256,000,000 6,909,000,000 9,397,000,000 7,395,000,000 7,043,000,000
Non-current liabilities 48,466,000,000 47,889,000,000 33,358,000,000 30,646,000,000 28,490,000,000
Total liabilities 57,722,000,000 54,798,000,000 42,755,000,000 38,041,000,000 35,533,000,000
Retained earnings 36,414,000,000 31,548,000,000 29,391,000,000 34,010,000,000 39,742,000,000
Stockholders equity 39,762,000,000 34,974,000,000 30,607,000,000 31,939,000,000 34,981,000,000

Facts:

  • Cash was $10 billion in 2019.
  • Current assets were $16.9 billion in 2019.
  • Net property, plant and equipment was $42 billion in 2019.
  • Non-current assets were $53.6 billion in 2019.
  • Total assets were $70.5 billion in 2019.
  • Current liabilities were $7 billion in 2019.
  • Non-current liabilities $28 billion in 2019.
  • Total liabilities were $35.5 billion in 2019.
  • Retained earnings were $39.7 billion in 2019.
  • Stockholders equity was $35 billion in 2019.

Explanation

  • Cash represents 15% of total assets.
  • Current assets represent 24% of total assets.
  • Net property, plant and equipment represent 60% of total assets.
  • Non-current assets represent 76% of total assets.
  • Total assets grew 0.76% in one year, 2018 to 2019.
  • Current liabilities represent 20% of the total liabilities.
  • Non-current liabilities represent 80% of the total liabilities.
  • Total liabilities represents 50% of the total liabilities and stockholders equity.
  • Stockholders equity represents 50% of the total liabilities and equity.

Interpretation

The company is liquid and financially healthy. The balance sheet is strong and stable.

 

3. COP INCOME AND MARKET

COP INCOME AND MARKET

2015 2016 2017 2018 2019 TTM
Revenue 29,564,000,000 23,693,000,000 29,106,000,000 36,417,000,000 32,567,000,000 32,567,000,000
EBIT -5,440,000,000 -4,634,000,000 2,360,000,000 8,859,000,000 7,278,000,000 7,278,000,000
Net Income -4,428,000,000 -3,615,000,000 -855,000,000 6,257,000,000 7,189,000,000 7,189,000,000
EBITDA 2,794,000,000 4,777,000,000 5,328,000,000 16,664,000,000 16,392,000,000 16,392,000,000
Market Capitalization 57,709,000,000 62,125,000,000 65,622,000,000 70,976,000,000 70,549,000,000 52,348,000,000
Intrinsic Value 106,536,316,910 184,383,385,632 323,869,764,451 218,122,508,960 115,498,848,453 167,935,607,654

Facts:

  • Revenue was $33 billion in the trailing twelve months.
  • EBIT was $7 billion in the trailing twelve months.
  • Net income was $7 billion the trailing twelve months.
  • EBITDA was $16 billion in the trailing twelve months.
  • Market capitalization was $52.348 billion in the trailing twelve months.
  • Intrinsic value was $168 billion in the trailing twelve months.

Explanation

  • Revenue was down by 11% from 2018 to 2019.
  • EBIT represents 22% of revenue.
  • Net income represents 22% of revenue.
  • EBITDA represents 50% of revenue.
  • Market capitalization was down 28% from 2019 to the trailing twelve months.
  • Intrinsic value was up by more than 200% of the market capitalization.

Interpretation

The earnings of the company shows improvements in the last three years. Bottomline was impressive.

 

4. COP FINANCIAL RATIOS

COP FINANCIAL RATIOS

2015 2016 2017 2018 2019 TTM
Asset turnover (average) 0.28 0.25 0.36 0.51 0.46 0.46
Return on assets % -4.14 -3.86 -1.05 8.73 10.23 10.23
Return on equity % -9.66 -9.67 -2.61 20.01 21.49 21.49
Debt/Equity 0.59 0.75 0.56 0.47 0.42 0.42
Return on invested capital % -5.61 -4.49 -0.47 13.7 15.82 15.82
Interest coverage -6.87 -3.44 -1.38 14.57 13.24 13.24

Facts:

  • Asset turnover was averaging 0.46 in the trailing twelve months.
  • Return on assets was 10.23% in the trailing twelve months.
  • Return on equity was 21.49% in the trailing twelve months
  • Debt/Equity was 0.42 in the trailing twelve months.
  • Return on invested capital was 15.82% in the trailing twelve months.
  • Interest coverage was 13.24 in the trailing twelve months.

Explanation

  • Asset turnover indicates that for every $1 invested in assets, COP generated 46 cents of sales.
  • Return on assets indicates that every $1 invested in assets, the company produced 10.23 cents of net income.
  • Return on equity indicates that for every $1 invested in equity, it generated 21.49 cents of earnings.
  • Debt/Equity means that for every dollar in equity COP has 42 cents in leverage. 
  • Return on invested capital means the percent of return on the invested capital.
  • Interest coverage means the company has the ability to pay its current interest in cash 13 times more on due date.

Interpretation

The company’s financial ratios were impressive. The company is healthy and profitable.

 

5. COP KEY EXECUTIVE COMPENSATION

COP Key Executive Compensation

2014 2015 2016 2017 2018
Key Executive Compensation
Salary 5,653,527 5,671,032 5,818,782 5,868,032 6,046,315
Bonus 0 0 0 0 200,000
Annual other income 0 0 0 0 0
Restricted Stock Award 15,271,390 15,906,476 15,850,148 17,274,323 30,769,372
Securities options 13,426,434 13,892,148 10,602,130 11,492,442 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 8,992,090 6,457,004 6+904518 12,568,554 12,679,435
Other compensation 1,021,157 798,083 590,167 853,753 4,097,176
Total 60,785,066 49,678,375 48,458,456 55,612,133 67,594,977
Ryan M. Lance/Chairman of the Board and CEO
Salary 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 6,116,797 6,630,693 6,607,217 6,993,660 11,006,296
Securities options 5,790,798 5,790,780 4,419,261 4,652,424 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 3,568,640 2,524,160 2,638,400 4,596,800 4,868,800
Other compensation 467,776 301,786 245,437 327,393 372,815
Total 27,577,071 21,339,719 19,212,038 21,848,930 23,405,270
Don E Wallette/Executive VP and CFO
Salary 874,000 874,000 939,550 961,400 985,444
Bonus 0 0 0 0 1
Annual other income 0 0 0 0 0
Restricted Stock Award 1,800,494 1,951,740 1,944,837 2,264,449 3,563,725
Securities options 1,704,492 1,704,798 1,301,146 1,506,438 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,102,988 811,072 911,364 1,720,906 1,763,945
Other compensation 1,333,181 85,414 61,530 109,606 109,403
Total 7,878,314 6,518,635 7,406,824 9,498,081 10,272,497
Alan Hirshberg/EVP, Production Drilling & Projects
Salary 1,085,667 1,096,000 1,178,200 1,205,600 1,205,600
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 3,219,979 2,761,283 2,751,504 3,203,706 5,040,839
Securities options 2,016,711 2,411,712 1,840,685 2,131,596 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,602,444 1,169,651 1,314,282 2,481,728 2,343,084
Other compensation 146,230 159,072 121,457 170,957 156,827
Total 11,747,432 8,787,738 9,468,653 9,632,808 12,970,551
Matthew J. Fox/EVP and COO
Salary 1,241,000 1,241,000 1,241,000 1,241,000 1,241,000
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 2,884,300 3,126,619 3,115,552 3,297,776 5,189,837
Securities options 2,730,645 2,730,348 2,083,774 2,194,020 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 1,872,421 1,324,395 1,384,336 2,625,956 2,554,599
Other compensation 177,039 159,327 91,371 149,519 150,731
Total 9,323,404 8,707,373 8,330,391 9,946,434 9,394,458
Janet L Carrig/Former Senior VP, Legal General Counsel & Corporate ecretary
Salary 752,860 760,032 760,032 760,032 672,333
Bonus 0 0 0 0 0
Annual other income 0 0 0 0 0
Restricted Stock Award 1,249,820 1,436,141 1,431,038 1,514,732 2,383,843
Securities options 1,183,788 1,254,510 957,264 1,007,964 0
LTIP Payout 0 0 0 0 0
Non-Equity Compensation 845,597 627,726 656,136 1,143,164 806,641
Other compensation 96,931 92,484 70,372 96,278 3,281,368
Total 4,258,845 4,324,910 4,040,550 4,685,880 7,144,185
Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary
Salary 241,938
Bonus 200,000
Annual other income 0
Restricted Stock Award 3,583,832
Securities options 0
LTIP Payout 0
Non-Equity Compensation 342,366
Other compensation 26,031
Total 4,407,016

Facts:

  • The total key executive compensation was $67.594,977 in 2018.
  • Ryan M. Lance, Chairman of the Board and CEO compensation was $23,405,270 in 2018.
  • Don E. Wallette, EVP and CFO compensation was $10,292,497 in 2018.
  • Alan Hirshberg, EVP Production Drilling and Project compensation was $12,970,551 in 2018.
  • Mathew J. Fox, EVP and COO compensation was $9,394,458 in 2018.
  • Janet L. Carrig, Former Senior VP, Legal General Counsel & Corporate Secretary compensation was $7,144,185 in 2018.
  • Kelly Brunetti Rose/Senior VP, Legal General Counsel & Corporate Secretary compensation was $4,407,016 in 2018.

Explanation

  • The total key executive compensation represents 0.94% of the net income.
  • CEO compensation represents 35% of the total key executive compensation.
  • CFO compensation represents 15% of the total key executive compensation.
  • EVP Production Drilling and Project compensation represents 19% of the total key executive compensation.
  • EVP and COO compensation represents 14% of the total key executive compensation.
  • Former Senior VP, Legal General Counsel & Corporate Secretary compensation represents 11% of the total key executive compensation.
  • Senior VP, Legal General Counsel & Corporate Secretary compensation represents 7% of the total key executive compensation.

Interpretation

The key executive compensation was  less than 1 percent which is fair enough for the compensation of the executives.

 

6. COP LOBBYING AND CONTRIBUTIONS

COP LOBBYING AND CONTRIBUTIONS

Period Amount Period Amount
2020 1,473,459 2008 8,459,053
2019 4,870,000 2007 4,089,568
2018 3,080,000 2006 2,038,291
2017 3,010,000 2005 5,218,084
2016 2,498,000 2004 2,670,438
2015 3,135,583 2003 1,380,000
2014 3,969,840 2002 1,157,000
2013 4,242,353 2001 878,639
2012 3,863,736 2000 1,235,159
2011 20,557,043 1999 1,340,812
2010 19,626,382 1998 10,000
2009 18,069,858

Explanation

ConocoPhillips has been spending annual lobbying and contributions since 1998. The amount varies annually. A Note from OpenSecrets is quoted as follows:

“NOTE: Figures on this page are calculations by the Center for Responsive Politics based on data from the Senate Office of Public Records. Data for the most recent year was downloaded on January 23, 2020 and includes spending from January 1 – December 31. Prior years include spending from January through December.”

Source: OpenSecret.org Center for Responsive Politics

 

7. COP FINANCIAL STRENGTH

COP FINANCIAL STRENGTH

DATA

Working capital 9,870,000,000
Total assets 70,514,000,000
Sales 32,567,000,000
EBIT 7,278,000,000
Market value of equity $52,348,000,000
Book value of total liabilities 35,533,000,000
Retained earnings 39,742,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.1400 1.20 0.17
B – Retained Earnings / Total Assets 0.56 1.40 0.79
C – EBIT / Total Assets 0.10 3.30 0.34
D – Market Value of Equity / Book Value of Total Liabilities 1.47 0.60 0.88
E – Sales / Total Assets 0.46 1.0 0.46
Z-Score 2.64

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compares data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Interpretation

The Z-Score of COP was 2.64.  According to Dr. Edward Altman a grading scale of 1.8 – 3.0 is more likely to declare bankruptcy. The figures used above are based on the latest financial reports. The Altman score weights different profitability and liquidity metrics to arrive at the overall score. This measurement is not calculated for the purpose of estimating the company will declare bankruptcy but it helps in comparing other companies that have become insolvent.

Hence, this measurement categorized the profitability or return on investment, liquidity, leverage and the efficiency in operating.

Conclusion

ConocoPhillips has been in the industry for more than a century and has been managed successfully. The company is stable and has a strong balance sheet and is  profitable. 

CITATION

http://www.conocophillips.com/

https://www.opensecrets.org/federal-lobbying/clients/summary?cycle=2019&id=D000000303

https://www.morningstar.com/stocks/xnys/cop/quote

Researched and written by Criselda

PJSC LUKOIL Company (LKOH) Extended Graph Analysis

November 27th, 2019 Posted by Extended Analysis No Comment yet

About the Company

Lukoil

Lukoil is an oil and gas company, specializes in oil and gas exploration, refining, transportation, marketing and distribution. The company produces petroleum products and petrochemicals, their products are sold internationally in Russia, Eastern and Western Europe, near-abroad countries and the USA.

The company is operating under the following segments: Exploration and Production, Refining, Marketing and Distribution and Corporate and Other.

Lukoil was founded by Vagit Alekperov on November 25, 1991, headquartered in Moscow, Moscow. The company’s date of IPO was on April 18, 20013 registered under the ticker MCX:LKOH.

 

PJSC Lukoil Company Extended Graph Analysis

1. LKOH CASH FLOWS

LKOH CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 865,369,697,920 848,972,000,000 752,247,000,000 758,490,000,000 1,006,651,000,000 1,109,952,000,000
Net cash provided for investing activities -813,952,240,920 -525,722,000,000 -500,343,000,000 433,286,000,000 420,392,000,000 415,243,000,000
Net cash provided by (used for) financing activities 58,921,626,400 -253,063,000,000 -193,134,000,000 247,395,000,000 468,549,000,000 523,214,000,000
Capital expenditures -813,952,240,920 -601,325,000,000 -499,679,000,000 -512,108,000,000 -451,679,000,000 -431,851,000,000
Free cash flows 51,417,457,000 247,647,000,000 252,568,000,000 246,382,000,000 554,972,000,000 678,101,000,000

Facts:

  • Cash from operating activities were RUB 1.1 trillion in 2019.
  • Cash provided for investing activities were RUB -415 billion in 2019.
  • Net cash from financing activities were RUB -523 billion in 2019.
  • Capital expenditures were RUB -431.9 billion in 2019.
  • Free cash flows were RUB 678 billion in 2019.

Explanation

  • Cash from operating activities increases year-over-year as net income increases year-over-year.
  • Cash from investing activities were the investment in property, plant and equipment; acquisitions, purchases of investments and purchases of intangibles.
  • Net cash provided by financing activities were debt repayment, common stock repurchased, dividend paid and other financing activities.
  • Capital expenditures are investments in property, plant and equipment.
  • Free cash flows had a growth of 1219 percent in five years and increases year-over-year.

Interpretation

The company was efficient in providing cash from operations year-over-year in the last five years. Further, the management was able to provide a positive free cash flow in the last five years.

 

2. LKOH BALANCE SHEET

LKOH BALANCE SHEET

2014 2015 2016 2017 2018
Total cash 179,988,892,720 281,031,000,000 278,301,000,000 349,951,000,000 518,850,000,000
Total current assets 1,265,091,787,960 1,213,647,000,000 1,255,641,000,000 1,308,114,000,000 1,478,479,000,000
Net property, plant and equipment 4,528,460,507,480 3,411,153,000,000 3,391,366,000,000 3,575,165,000,000 3,829,164,000,000
Total non-current assets 4,949,472,204,040 3,806,960,000,000 3,759,023,000,000 3,918,101,000,000 4,253,903,000,000
Total assets 6,214,563,992,000 5,020,607,000,000 5,014,673,000,000 5,226,215,000,000 5,732,382,000,000
Short-term debt 118,788,222,280 60,506,000,000 58,429,000,000 128,713,000,000 99,625,000,000
Total current liabilities 789,994,485,280 695,168,000,000 830,686,000,000 958,847,000,000 914,560,000,000
Total non-current liabilities 914,841,629,520 1,102,971,000,000 963,107,000,000 784,417,000,000 752,262,000,000
Total liabilities 1,704,836,114,800 1,798,139,000,000 1,793,793,000,000 1,743,264,000,000 1,666,822,000,000
Total stockholders’ equity 4,509,727,877,200 3,222,468,000,000 3,220,880,000,000 3,482,951,000,000 4,065,560,000,000

Facts:

  • Cash was RUB 518.9 billion in 2018.
  • Current assets were RUB 1.478 trillion in 2018.
  • Net property, plant and equipment was RUB 3.8 trillion in 2018.
  • Non-current assets were RUB 4.254 trillion in 2018.
  • Total assets were RUB 5.7 trillion in 2018.
  • Short-term debt was RUB 99.6 billion in 2018.
  • Current liabilities were RUB 914.6 billion in 2018.
  • Non-current liabilities were RUB 752 billion in 2018.
  • Total liabilities were RUB 1.667 trillion in 2018.
  • Shareholders equity was RUB 4.066 trillion in 2018.

Explanation

  • Cash has a growth of 188 percent in five years and it represents 35 percent of current assets.
  • Current assets increased by 17 percent in 5 years and it represents 26 percent of total assets.
  • Net property, plant and equipment decreased by 15 percent in five years and it represents 90 percent of total non-current assets.
  • Non-current assets decreased by 14 percent in five years and it represents 74 percent of the total assets.
  • Total assets decreased by 8 percent due to property, plant and equipment.
  • Short-term debt represents 11 percent of total current liabilities.
  • Current liabilities represents 55 percent of total liabilities.
  • Non-current liabilities represents 45 percent of total liabilities.
  • Total liabilities represents 29 percent of the total liabilities and equities.
  • Stockholders equity represents 71 percent of the total liabilities and equities.

Interpretation

The company has a sound balance sheet in the last five years. The company is operating its business using two-thirds of the shareholders investment and one-third using the creditor’s money.

 

3. LKOH INCOME AND MARKET

LKOH INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Revenue 8,013,730,295,480 5,749,050,000,000 5,227,045,000,000 5,936,705,000,000 8,035,889,000,000 8,325,588,000,000
EBIT 493,552,000,760 464,692,000,000 416,820,000,000 503,811,000,000 768,721,000,000 860,157,000,000
Net Income 263,813,244,240 291,135,000,000 206,794,000,000 418,805,000,000 619,174,000,000 673,275,000,000
Market Capitalization USD 30,216,000,000 22,762,000,000 40,646,000,000 41,078,000,000 49,695,000,000 66,635,000,000
Intrinsic Value USD 31,345,008,852 32,862,137,222 123,791,444,678 119,855,455,079 98,365,393,274 185,462,883,775
EBITDA 901,889,989,000 784,162,000,000 624,386,000,000 872,354,000,000 1,148,295,000,000 1,251,370,000,000

Facts:

  • Revenue was RUB 8.326 trillion or USD 130 billion in 2019.
  • EBIT was RUB 860 billion USD 13.455 billion in 2019.
  • Net income was RUB 673 billion or USD 10.532 billion in 2019.
  • Market capitalization was USD 66.6 billion or RUB 4.260 trillion in 2019.
  • Intrinsic value was USD 185 billion or RUB 11.856 trillion in 2019.
  • EBITDA was RUB 1.251 trillion or USD 19.574 billion in 2019.

Explanation

  • Revenue was erratic in movement in the last five years and has grown only 4 percent..
  • EBIT has a growth of 74 percent in five years.
  • Net income has a growth of 155 percent in five years. Further, it represents 8 percent of the total revenue.
  • Market capitalization increased by 121 percent in five years.
  • Intrinsic value increased by 492 percent in five years. Moreover, intrinsic value was greater by 178 percent against market capitalization.
  • EBITDA has a growth of 39 percent in five years. 

Interpretation

The company is profitable, the management has proficiently managed its business operation in the last five years.

4. LKOH FINANCIAL RATIOS

LKOH FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (average) 1.63 1.02 1.04 1.16 1.47 1.46
Return on Asset (ROA) % 5.38 5.18 4.12 8.18 11.3 11.82
Return on Equity (ROE) % 7.44 7.53 6.42 12.49 16.41 17.74
Financial Leverage (avg) 1.37 1.56 1.56 1.5 1.41 1.53
Return on Invested Capital % 6.83 6.71 5.71 10.67 14.51 15.74
Interest Coverage 11.63 9.83 7.76 23.68 25.01 22.62

Facts:

  • Asset turnover was averaging 1.46 in 2019.
  • Return on assets was 11.82 percent in 2019.
  • Return on equity was 17.74 percent in 2019.
  • Financial leverage was averaging 1.53 in 2019.
  • The return on invested capital was 15.74 percent in 2019.
  • Interest coverage 22.62 in 2019.

Explanation

  • Asset turnover indicates that the company is generating $1.46 of net sales for every dollar in assets.
  • Return on assets indicates that every dollar invested in the entire asset base produced 0.1182 cents.
  • Return on equity indicates that every dollar of shareholders equity generated 17.7 cents in profit.
  • Financial leverage indicates that in every dollar in equity LKOH had $1.53 in total assets. $0.53 was borrowed.
  • Return on invested capital indicates that 15.74 percent is the return that the company makes over its capital. 
  • Interest coverage indicates that the company is making more than enough money to cover interest payments 22 times over.

Interpretation

The company is profitable and management is efficient in the performance of its business operations.

 

5. LKOH KEY EXECUTIVE COMPENSATION

LKOH COMPENSATION OF DIRECTORS AND MANAGEMENT COMMITTEE MEMBERS

REMUNERATION OF DIRECTORS AND MANAGEMENT COMMITTEE MEMBERS

2016 2017 2018
Remuneration for performance of duties of a member of the Board of Directors, RUB 6,000,000 6,500,000 6,750,000
Total amount paid to members of the Board of Directors, RUB million * 192,400,000 261,100,000 816,800,000
Total amount paid to members of the Management Committee, RUB million ** 1,636,300 1,738,800 5,502,400***

* This amount includes, among others, payments to Directors who are employed by the Company but are not members of the Management Committee (such as salary, bonuses and other types of remuneration).

** Including the remuneration of the President of PJSC LUKOIL

*** With due regard for execution of the Regulations on Long-Term Incentives for Employees of PJSC LUKOIL and its Subsidiaries in 2013-2017

Facts:

  • Compensation for performance of duties of a member of a Board of Directors was RUB 6,750,000 in 2018.
  • Total amount paid to members of the Board of Directors was RUB 816,800,000 in 2018.
  • Total amount paid to members of the management committee was RUB 5,502,400 in 2018.

LUKOIL KEY PEOPLE

NAME TITLE
Ravil Ulfatovich Maganov Executive Director, Vice Chairman
Vagit Yusufovich Alekperov CEO, Director. President
Leonid Arnoldovich Fedun/ Executive Director Executive Director
Lyubov N Khoba/ Executive Director Director, Chief Accountant, President

 

6. LKOH LOBBYING AND CONTRIBUTIONS

 

No Politicians or Lobbyist Found – OpenSecret.org  

Center for Responsive Politics

 

7. LKOH FINANCIAL STRENGTH

LKOH FINANCIAL STRENGTH

DATA

(in RUB)
Working capital 563,919,000,000
Total assets 5,732,382,000,000
Sales 8,325,588,000,000
EBIT 860,157,000,000
Market value of equity 4,342,735,440,000
Book value of total liabilities 1,666,822,000,000
Retained earnings 3,963,628,000,000

CALCULATION

Ratio Score Result
A – Working Capital / Total Assets 0.10 1.20 0.12
B – Retained Earnings / Total Assets 0.69 1.40 0.97
C – EBIT / Total Assets 0.15 3.30 0.50
D – Market Value of Equity / Book Value of Total Liabilities 2.61 0.60 1.56
E – Sales / Total Assets 1.45 1.0 1.45
Z-Score 4.60

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation:

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

Lukoil has a Z-Score of 4.60. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy. In other terms, the company is not close to insolvency. The main factors of this statistical measurement is the profitability, liquidity, leverage and efficiency.

 

CITATION

http://www.lukoil.com/

https://www.opensecrets.org/search?q=++PJSC+Lukoil+LKOH&type=indiv

 

Reseahttps://www.morningstar.com/stocks/xlon/lkoh/quoterched and written by Criselda

 

 

 

 

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