Comparison of the Efficiency of Overcoming the Crisis of Russian and Foreign Oil and Gas Companies

Abstract

The purpose of the study was to evaluate the performance of large domestic and foreign oil and gas companies based on a factor analysis of the return on equity in the context of financial and economic crises. The relevance of the topic is due, on the one hand, to the leading role of the oil and gas industry in the Russian economy, and, on the other hand, to the need develop modern tools for the assessment and prediction of the performance of companies and comparison of the results of economic activity with those of foreign competitors. The object of the study was the financial performance of the largest domestic and foreign vertically integrated oil and gas companies. The subject of the study is the methods of deterministic factor analysis for assessing indicators in the oil and gas sector. The paper analyzes the main empirical indicators that reflect the degree of efficiency, justifies the choice of the profitability indicator of own assets as the main indicator for research in the oil and gas industry, analyzes approaches to assessing the contribution of various factors to the final efficiency. Methods of classification, decomposition, statistical, comparative and factor analysis were used. A five-factor DuPont decomposition of the return on equity was carried out, and the key factors affecting the efficiency of companies were identified: tax burden coefficient, percentage burden coefficient, return on sales, asset turnover ratio, financial leverage ratio. Using the LMDI‑1 model, the impact of changes in economic factors on changes in the efficiency of companies in 2013–2017 and 2018–2021 was assessed. It was concluded that domestic companies, on average, slightly outperformed foreign ones in terms of the considered efficiency indicator and coped better with the consequences of financial and economic crises in the periods under review. At the same time, domestic companies have a higher value of the tax burden coefficient with lower values of assets turnover and financial leverage.

Keywords

• oil and gas companies
• performance evaluation
• return on equity
• dupont model
• factor analysis