Tuesday, February 23, 2016

Gross Profit Margin and Net Income Percentages for Some Major Oil Companies

Annual reports were used to obtain sales revenue, cost of sales, and net income after taxes for 17 major international oil companies.  The data obtained are shown in the following table:

Company Name
Sales Revenues (billions of USD)
Cost of Sales (billions of USD)
Gross Profit Margin %
Net Income (billions of USD)
Net Income as a % of Sales
Rosneft
137.2
24.0
82%
8.7
6%
Pemex
123.0
58.8
52%
-13.0
-11%
Conoco Phillips
55.5
31.0
44%
6.9
12%
Petronas
99.2
65.3
34%
14.4
15%
Chevron Corporation
212.1
145.0
32%
19.2
9%
Exxon Mobil
394.1
284.1
28%
32.5
8%
Total SA
212.0
153.0
28%
4.2
2%
YPF
16.8
12.4
26%
1.0
6%
China National Offshore Oil
95.7
70.8
26%
12.4
13%
China National Petroleum Corp.
431.5
326.2
24%
19.4
4%
Royal Dutch Shell
421.0
357.3
24%
14.7
3%
Petrobras
143.7
109.5
24%
-7.5
-5%
Eni
86.1
67.7
21%
1.0
1%
Sinopec
441.8
365.0
17%
10.2
2%
Marathon Petroleum
97.8
83.8
14%
2.5
3%
BP
358.7
309.3
14%
3.8
1%
Pertamina
70.7
66.0
7%
1.5
2%


average
30%

4%

The data indicates to me that the profits of these oil companies are not unreasonable.  Considering the business risk and required technical skills of these companies, a 30% gross profit margin percentage average for the companies does not seem to be out of line in comparison to other industrial sectors.   And, an average 4% net income after taxes as a percentage of sales for all companies is, if anything, a bit on the low side compared to other industrial sectors.

These 17 companies represent most of the largest global oil exploration and production (integrated) oil companies.  Some of the companies are state owned.




Friday, February 5, 2016

Projected Bio-Succinic Acid Markets Greatly Exceed Current Bio-Succinic Acid Production Capacity

An Internet search found commercially available bio-succinic acid production capacities.  The capacities found are shown in the following table:


company
2015 capacity in metric tons
bioamber
30,000
reverdia
10,000
myriant
13,600
succinity
10,000
total
63,600


No other companies that produce commercially-available bio-succinic acid could be found by the search.  The total capacity of these four companies (63,600 metric tons (mt)) is interesting in that the amount is substantially less than what market studies suggest will be needed in coming years.  For example, market study data found on the Internet provide estimates for bio-succinic acid demand in 2020 in the 600,000 mt to 700,000 mt range.  To meet this demand, the current capacity (63,600 mt) would have to increase in the 40% to 50% per year range.  This suggests that the four companies in the table above, and possibly other companies, will have to add significant capacity to meet the market studies' estimated needs.


Important reasons for the huge increased demand for bio-succinic acid apparently are that: first, succinic acid is used in making polybutylene succinate (PBS), a biodegradable plastic that can be used to make shopping and other bags; second, using a bio source, such as sugar, to make succinic acid (bio succinic acid) is easier than using fossil fuel sources; and, third, using a bio source versus a fossil fuel source has a significant carbon footprint reduction.

Monday, February 1, 2016

Chemical and Material Shortage Alert – January 2016

The purpose of this blog is to identify chemical and material shortages reported on the Internet.  The sources of the information reported here are primarily news releases issued on the Internet.  The issue period of the news releases is January 2016.

Section I below lists those chemicals and materials that were on the previous month’s Chemical and Material Shortage Alert list and continue to have news releases indicating they are in short supply. Click here to read the December 2015 Chemical and Material Shortage Alert list.

Section II lists the new chemicals and materials (not on the December alert).  Also provided is some explanation for the shortage and geographical information.  This blog attempts to list only actual shortage situations – those shortages that are being experienced during the period covered by the news releases.   Chemicals and materials identified in news releases as only being in danger of being in short supply status are not listed.

Section I.   None

Section II.   Shortages Reported in January not found on the Previous Month’s List

Steel:  Japan; production not keeping up with demand

Reasons for Section II shortages can be broadly categorized as: 

1.  Mining not keeping up with demand: none
2.  Production not keeping up with demand: steel
3.  Government regulations: none
4.  Sources no longer available: none
5.  Insufficient imports:  none
6.  Supply not keeping up with demand:  none