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.
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