Information agency Credinform has prepared a review of activity trends of the largest Russian petrol retailers.

The largest companies (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2014 - 2019). The company selection and analysis were based on data of the Information and Analytical system Globas.

Net assets is a ratio reflecting the real value of company's property. It is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The ratio is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest company in terms of net assets is LLC GAZPROMNEFT - TSENTR, INN 7709359770, Moscow. In 2019 net assets of the company amounted to more than 45 billion RUB.

The smallest size of net assets in TOP-1000 had LLC NEW PETROL TYUMEN, INN 7203254282, Tyumen region, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated, 18/12/2020. The lack of property of the company in 2019 was expressed in negative terms -9,4 billion RUB.

For the last ten years, the average industry values of net assets showed the growing tendency with negative dynamics of growth rates (Picture 1).

Picture 1. Change in average net assets value in 2014 – 2019

For the last six years, the share of ТОP-1000 enterprises with lack of property is decreasing (Picture 2).

Picture 2. The share of enterprises with negative net assets value in ТОP-1000 in 2014-2019

Sales revenue
In 2019, the total revenue of 10 largest companies amounted to 59% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of monopolization in the retail market of petrol.

Picture 3. Shares of TOP-10 in TOP-1000 total revenue for 2019

In general, the growing trend in sales revenue with negative dynamics of growth rates is observed (Picture 4).

Picture 4. Change in average revenue in 2010 – 2019

Profit and loss
The largest company in terms of net profit is LLC GAZPROMNEFT - TSENTR, INN 7709359770, Moscow. In 2019 the company’s profit amounted to more than 382 billion RUB.

For the last ten years, the average profit values show the growing tendency (Picture 5).

Picture 5. Change in average profit (loss) in 2010 – 2019

Over a six-year period, the average net profit values of ТОP-1000 show the decreasing tendency, along with this the average net loss is growing (Picture 6).

Picture 6. Change in average net profit/loss of ТОP-1000 companies in 2014 – 2019

Main financial ratios
For the last ten years, the average values of the current liquidity ratio were within the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).

The current liquidity ratio (ratio of total working capital to short-term liabilities) shows the sufficiency of company’s assets to meet short-term obligations.

Picture 7. Change in average values of current liquidity ratio in 2010 – 2019

Within ten years, the downward trend of the average values of ROI ratio is observed (Picture 8).

The ROI ratio is calculated as a ratio of net profit to sum of stockholder equity and long-term liabilities and shows the return from equity involved in commercial activities and long-term borrowed funds.

Picture 8. Change in average values of ROI ratio in 2010 – 2019

Assets turnover ratio is the ratio of sales revenue and company’s average total assets for a period. It characterizes the effectiveness of using of all available resources, regardless the source of their attraction. The ratio shows how many times per year the full cycle of production and circulation is performed, generating the corresponding effect in the form of profit.

For the last ten years, this business activity ratio demonstrated the growing trend (Picture 9).

Picture 9. Change in average values of assets turnover ratio in 2010 – 2019

Small businesses
90% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is 9,8%, which is significantly lower than the national average value in 2018 – 2019 (Picture 10).

Picture 10. Shares of small and medium-sized enterprises in ТОP-1000

Main regions of activity
TOP-1000 companies are registered in 80 regions of Russia and are unequally located across the country. Almost 48% of the largest enterprises in terms of revenue are located Moscow and Republic of Bashkortostan (Picture 11).

Picture 11. Distribution of TOP-1000 revenue by the regions of Russia

Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part have above average financial position (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Most of TOP-1000 companies got superior/high and strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies by Solvency index Globas

Conclusion
A complex assessment of activity of the largest Russian petrol retailers, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends within 2010-2019 (Table 1).

Table 1. Favorable and unfavorable trends, assessment factors

Trends and assessment factors	Relative share, %
Dynamics of average net assets value	10
Growth/drawdown rate of average net assets value	-10
Increase / decrease in the share of enterprises with negative net assets	10
The level of capital concentration	-10
Dynamics of average net profit	10
Growth/drawdown rate of average revenue	-10
Dynamics of average profit (loss)	10
Increase / decrease in average net profit of companies	10
Increase / decrease in average net loss of companies	-10
Increase / decrease in average values of current liquidity ratio	10
Increase / decrease in average values of ROI ratio	-10
Increase / decrease in average values of assets turnover ratio, times	10
Share of small and medium-sized businesses by revenue more than 22%	-10
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Average value of factors	1,3

favorable trend (factor), unfavorable trend (factor)

Decree of the Government of the Russian Federation of November 30, 2020 No. 1969 amended the procedure for conducting annual scheduled inspections of legal entities and sole entrepreneurs in 2021.

In particular:

• remote inspections using audio or video communication are allowed;
• starting from July 1, 2021, inspection visits may replace the scheduled on-site inspections included in the annual plan for 2021. The decision on this must be made no later than 20 working days before the date of the start of the audit;
• the period for scheduled inspections starting after June 30, 2021 cannot exceed 10 working days, taking into account the specifics of calculating the deadlines established by legislation;
• scheduled inspections of small businesses, information about which is contained in the Unified Register, is not included in the annual inspection plan. The exceptions are inspections of persons with a high level of risk, inspections aimed at license control, etc.

It should be recalled that the Article 70 of the Federal Law of July 31, 2020 No. 248-FL "On state control (supervision) and municipal control in the Russian Federation" determines an inspection visit as a control or supervisory measure carried out by interacting with specific controlled persons, owners or users at the location of production facilities, including branches, representative offices, and separate structural units.

The inspection visit involves examinations, interviews, instrumental examinations, obtaining written explanations, and requesting documents.

It is carried out within one working day without prior notification of controlled persons and owners, who are obliged to ensure unhindered access of controllers to buildings, structures and premises.

The subscribers of the Information and Analytical system Globas have access to complete information about all scheduled and unscheduled inspections of a particular organization containing in the section "Inspections' plan of supervisory authorities" of the company’s report.