As if this news isn’t bad enough, poor returns on lower oil prices kicked ExxonMobil to Number 9 on the list of the world’s top 10 energy companies, one step below Valero, the only other American company on the list.
Moscow, Russia-based Gazprom is majority-owned by the Russian government although it is considered a “Public Joint Stock Company” or PJSC under the country’s corporate structure framework. Gazprom focuses on natural gas exploration, production and trading, however, Platts Global said Gazprom’s rise in the rankings favored the pattern of gas, utilities, and pipeline companies leading the way this year.
The new rankings order shows that integrated oil and gas (IOG) companies are not the big movers on the leaderboard, even though they continue to make a strong showing as they have since the rankings were first published in 2002. Now, it’s utilities and pipeline companies among the biggest gainers.
The annual Top 250, published by S&P Global Platts, ranks companies based on financial performance using four key metrics: asset worth, revenues, profits, and return on invested capital. All companies on the list have assets greater than $5.5 billion.
“European utilities and North American pipeline operators got a boost from sticking to what they know best and shying away from more risky enterprises and territories,” said Harry Weber, senior natural gas writer of S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets.
“Regulated utilities, in particular, have an advantage because their revenues are largely defined and consistent, and are not as susceptible to swings in oil and gas prices.” Collectively, the world’s top 10 companies posted combined profits of $63.7 billion last year, 14% lower than the $74.3 billion posted the year before.
Coal interests were hit especially hard in the latest rankings, as more countries push for increases in renewable energy and cleaner burning fuel. But this is not without exception. China’s Shenhua Energy rose to 13th place from 25th, as the price of coal in China rose sharply following government output cuts.
