Solvency ratio of natural gas producers

ranking 25/10/2021

During the energy crisis in Europe, Russia is increasing its foreign gas supplies. Eight of the ten leading gas producing companies in the country are included in Gazprom Group. Analysis of the solvency ratio shows, on average, a low dependence of TOP 10 enterprises on external loans in 2020, with declining revenues and growing profits.

Information agency Credinform has selected for this ranking in Globas the largest Russian producers of natural gas and condensate. Companies with the largest volume of annual revenue (TOP 10) were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by solvency ratio (Table 1).

Solvency ratio (х) is calculated by dividing total equity by total assets. Shows the dependence of the company on external loans. The recommended value is >0,5.

The value of the ratio below the minimum one indicates a strong dependence on external sources of funds, which, if the market conditions deteriorate, can lead to a liquidity crisis and an unstable financial position of the company.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, solvency ratio and solvency index Globas of the natural gas producers (TOP 10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB Solvency ratio (x), >0,5 Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
JSC GAZPROM DOBYCHA TOMSK
INN 7019035722 Tomsk region
down42 540 down32 891 down5 375 down4 423 up0,67 up0,73 253 Medium
LLC GAZPROM DOBYCHA ORENBURG
INN 5610058025 Orenburg region
down88 019 down73 041 down1 267 down-309 up0,69 down0,68 272 Medium
LLC GAZPROM DOBYCHA NOYABRSK
INN 8905026850 Yamal-Nenets autonomous district
down62 531 up81 025 down1 283 up4 367 up0,22 up0,62 237 Strong
LLC NOVATEK-YURKHAROVNEFTEGAZ
INN 8903021599 Yamal-Nenets autonomous district
down171 960 down137 716 down4 239 down1 930 down0,63 down0,61 256 Medium
JSC SEVERNEFTEGAZPROM
INN 8912001990 Yamal-Nenets autonomous district
up51 742 down44 073 down4 408 up5 950 down0,68 down0,54 157 Superior
LLC NOVATEK-TERKOSALENEFTEGAZ
INN 8911020768 Yamal-Nenets autonomous district
up113 459 down111 813 up11 683 down7 683 down0,57 down0,52 203 Strong
LLC GAZPROM DOBYCHA URENGOI
INN 8904034784 Yamal-Nenets autonomous district
down303 918 down270 016 down16 322 down15 816 up0,52 down0,49 191 High
LLC GAZPROM DOBYCHA NADYM
INN 8903019871 Yamal-Nenets autonomous district
up209 533 up211 011 up2 390 up4 777 up0,30 up0,41 217 Strong
LLC GAZPROM DOBYCHA YAMBURG
INN 8904034777 Yamal-Nenets autonomous district
down333 793 down277 478 down1 700 up9 021 up0,33 up0,40 202 Strong
LLC GAZPROM DOBYCHA ASTRAKHAN
INN 3006006420 Astrakhan region
down94 612 down78 928 down982 down237 down0,37 down0,35 281 Medium
Average value for TOP 10 down147 211 down131 799 down4 965 up5 390 up0,50 up0,54  
Industry average value (oil and gas extraction) up15 939 down10 749 down2 421 down1 798 down0,65 up0,66

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

The average 2020 value of solvency ratio of TOP 10 was above the industry average one. Six of TOP 10 companies had decrease in 2020, while in 2019 the decrease was recorded for four companies.

Two of ten companies gained revenue and four ones gained net profit in 2020.

The decrease in average revenue was 10%, and there was 33% fall of the industry average value.

The average profit of TOP 10 have increased almost 9%. However, on average in the industry, the decrease was recorded by almost 26%.

The industry average values of solvency ratio have raised for three periods during the past 5 years. The highest value was recorded in 2018 and the lowest one was in 2016 (Picture 1).

Picture 1. Change in the average values of solvency ratio of natural gas producers in 2016 - 2020 Picture 1. Change in the average values of solvency ratio of natural gas producers in 2016 - 2020