Product profitability ratio of the Russian oil refining companies

ranking 10/03/2016

Information Agency Credinform has prepared the ranking of the Russian oil refining companies` products. Top-10 enterprises in terms of annual revenue were selected by experts according to the data from the Statistical Register for the latest available period (2014) with oil refining activity. The enterprises were ranked by decrease in the product profitability ratio.

Product profitability is calculated as the ratio of revenue to amount of expenses from ordinary activities. Generally, profitability reflects economic efficiency of production, and product profitability index helps to understand whether output of one or another product is reasonable. There are no specified values for indicators of this group, because they vary strongly depending on the industry.

Product profitability ratio and solvency index of the Russian oil refining companies
NameRevenue of 2014, th RUBRevenue of 2014 to 2013, %%Product profitability ratio, %Solvency index GLOBAS-i®
1 OJSC SIBUR HOLDING
INN 7727547261
285 545 215 117 34,47 261 High
2 LLC LUKOIL-VOLGOGRADOILREFINING
INN 3448017919
259 702 962 106 21,13 158 The highest
3 PJSOC Bashneft
INN 0274051582
582 128 345 112 17,05 189 The highest
4 LLC LUKOIL-Permnefteorgsintez  
INN 5905099475
291 049 782 105 12,39 165 The highest
5 LLC LUKOIL-Nizhegorodnefteorgsintez
INN 5250043567
369 313 857 105 9,80 153 The highest
6 OJSC TAIF-NK
INN 1651025328
132 010 468 104 9,77 219 High
7 LLC NefteGazIndustriya-Invest
INN 277105194
87 281 447 126 9,52 260 High
8 OJSC  Gazprom-Neftekhim Salavat 
INN 266008329
190 633 900 114 4,25 280 High
9 LLC LUKOIL-UCHTAOILREFINING
INN 1102057865
83 214 664 104 3,81 221 High
10 JSC Antipinsky Refinery
INN 7204084481
124 624 801 179 2,10 315 Satisfactory

OJSC SIBUR HOLDING takes the lead in the ranking with the product profitability index 34,47%. This is high result twice exceeding industry average index 15,78%  and showing the smallest primecost of products in the industry. The company has got high solvency index Globas-i® that shows the ability of the company to pay off the debts in time and to the full extent. 

product profitability ratio

PJSOC Bashneft, showed at the end of 2014 the highest in the industry results according to the revenue value, takes the third place of the ranking with the product profitability index 17,05%, that is close to the industry average index. The enterprise has got the highest solvency index Globas-i® that is a characteristic of high ability to pay off the debts.  

However, it worth mentioning that enterprises of the LUKOIL group take the leading position according to the total revenue volume in the industry. This group is represented in the TOP-10 list with four enterprises. The total revenue volume is more than 1,3 trillion RUB that is almost 42% of the TOP-10 total revenue volume. Product profitability indexes of the LUKOIL group range from 21,13% to 3,81%. 

JSC Antipinsky Refinery has got the lowest product profitability index among TOP-10 enterprises. Summarizing financial and nonfinancial data, the company has got satisfactory solvency index Globas-i® that is not a guarantee for paying the debts in time and to the full extent. However, this particular enterprise has shown the largest revenue value of 2014 to 2013. Nevertheless, this achievement is negated by the 34 bln RUB loss of 2014 and decreasing product profitability index from 6,29% in 2012 to 2,1% - in 2014. 

In general, oil refining companies operate profitably, but demonstrate soft decrease in the average product profitability index: 22,41% - in 2010; 18,7% - in 2011; 15,99% - in 2012; 15,71% - in 2013, with small increase to 15,78% - in 2014. This happened on the back of relatively stable average revenue indexes and high (up to the middle of 2014) global oil prices.  

According to the Federal State Statistics Service (Rosstat), in 2015, first in the last few years, 2,4% decrease in primary crude oil processing was observed. Further scenario remains to be seen. According to experts, reserves of the industry are in structural changes and more advanced oil refining.