Skip to main content

Oil Majors - Comparative Stats


btw, my fellow blogger Seng is absolutely correct to insists that pages 81-165 of the 2007 annual report be made fully available on the website... I think other oil companies (the listed ones in particular) does that, so I doubt there are trade secrets you cannot reveal, maybe executive compensation information may be deemed sensitive, but hey, its a brave new world Merican, so let's get it all out there ... at least make my job in defending Petronas ass easier OK!


Petronas Malaysia

ROE - 2005: 38.5%; 2006: 41.6% ; 2007: 40.9%


Net profit - 2006: RM43.1bn (US$13.26bn) ; 2007: RM46.4bn (US$14.27bn)

ROE Of Majors
(Most Recent Year)

1) Royal Dutch Shell 24.06%

2) BP Plc 26%

3) Total SA 29.5%

4) Repsol YPF 17.9%
5) Statoil 33.23%

6) Lukoil 23.23%


Net Profits Of Majors (Most Recent Year US$)

1) Royal Dutch Shell 91.8bn

2) BP Plc 75.3bn
3) Total SA 56.4bn

4) Repsol YPF 18.3bn

5) Statoil 12.3bn

6) Lukoil 20.4bn


Notes: Just for comparison sake, Statoil makes about the same amount of money as Petronas. However, Norway is the world's third largest oil exporter behind Saudi Arabia and Russia. Norway is also the world's seventh largest gas producer and the second largest supplier of natural gas to Europe. Statoil merged with Norsk Hydro and is the leading petroleum company in Norway, and also the world's largest operator of deepwater fields. To be fair, Norway has more than just one oil giant.


Asian Majors Net Profit (US$)

1) Petrochina 19.13bn

2) CPCC 7.096bn

3) CNOOC 3.96bn

Return On Equity (Most Recent Year)

1) Petrochina 24.19%

2) CPCC 19.46%

3) CNOOC 28.7%


A detail report was submitted to the Select Committee on Energy Independence & Global Warming last month. The report covers Exxon Mobil, BP, Shell, Conoco Phillips and Chevron. The 5 companies CEO's average pay was US$23m. At Exxon Mobil, the top 5 executives was paid a total of US$28m (average RM18.2m pp) in 2001 and a total of US$76m (average of RM49.4m pp) in 2007. Keep that in mind as Petronas starts to reveal executive compensation in the coming days.

photos: Rain Li Choi Wah

Comments

mantua said…
Dear SD

I think that you have unknowingly given Petronas more credit than it is due by comparing its apparently high ROE (41% in 2007)with industry norms of 20-30%.

You have overlooked the fact that Petronas is first & foremost a tax-collection agency. Crude oil & natural gas producers in Malaysia do not pay corporate tax but instead share profits with the govnmt (represented by Petronas)in accordance with the so-called production sharing contracts (PSC's).

The terms of these PSC's vary & are not in the public domain,to the best of my knowledge. In general, the oil companies contribute 100% of ALL capex on exploring and producing the crude oil &/or natural gas. They are then allowed to recover these expended costs from part of the revenue generated by oil/gas sales (after first paying royalties to the respective states e.g to Wang Ehsan in Trengganu).

The remaining portion of the revenue from oil/gas sales (termed "profit oil")is then split roughly 60/40 to the government & the oil company, the government's share being paid to Petronas. In addition, ownership of the oilfield & all its assets revert to Petronas at the end of the production sharing contract e.g. many of the older fields in Sarawak now belong to Petronas.

Therefore Petronas should be capable of generating billions of dollars in income with minimal capital expenditure (spent on monitoring the oil company activities & admin costs) i.e. its ROE should easily exceed 100%!! So why then is its ROE less than 100%?

The answer it that Petronas is also playing another role as a participant in oil exploration & production i.e just like Shell, Exxon and all the public listed or privately owned companies. For example Petronas has equity participation in many PSC acreages in Malaysia and is also exploring & producing oil and gas in other countries.

I expect that the ROE of Petronas' activities as an oil explorer & producer is probably very low because it is a relatively new participant in this business. So nothing to be ashamed about (at this stage) but certainly nothing to boast about either.

In conclusion, most, if not all, of the profits" made by Petronas is in fact revenue collected on behalf of the government i.e. people of Malaysia). These profits are returned to the government & consolidated with other government revenue. How this revenue is eventually spent is therefore the SOLE responsibility of the government and not Petronas.

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…