Friday, May 2, 2014

Some Oil Company Metrics

Data from recent (2013; 2012) annual reports of 40 of the largest oil companies in the world were reviewed and analyzed.  The oil companies represent 6 global regions (North America; South America; the Middle East; Africa; Europe; and Asia).

Some comments from the review and analysis of the data are:

1.  The average annual revenues of the 40 companies were 108 billion USD.  The revenue range was from $2 billion to $453 billion.  Each region has oil companies with revenues greater than the average.

2.  Gross profits (revenues from products less cost to produce those products) ranged from $812 million to $149 billion, with the average being $27 billion.

3.  The gross profit margin percentage (gross profit as a percentage of revenue) ranged from 3% to more than 65% with the average being 30%.  All regions had oil companies exceeding the average gross profit margin percentage.

4.  The number of employees at the companies ranged from a few thousand to more than a hundred thousand with the average being 52,000.  The average sales revenue per employee was $3.4 million.

These financial metrics are very high for any industrial sector, showing that the petroleum (oil) sector does very well on average.   Also, companies exceeding these metric averages were found in all 6 regions (identified above) showing that no particular area prevents an oil company’s economic success.

Please email me if you would like more details on the above and further research and analysis.

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