On 25 September 2017, Energy major Oil and Natural Gas Corporation has been ranked 11th and number one E&P company in the coveted Platts Top 250 Global Energy Company Rankings 2017. Russia’s Gazprom end American giant Exxon Mobil’s 12-year still reign at No.1.
Significantly, 10 of the 14 Indian energy companies that made it to the S&P list this year improved their rankings.
Revenues of the top 10 companies surged more than 30 percent to $1.1 trillion from $830.2 billion in the 2016 rankings. These companies posted combined profits of $63.7 billion last year, 14 per cent lower than the $74.3 billion posted the year before. The top 250 profit figures are adjusted for preferred dividends and exclude discontinued operations and extraordinary operations.
Commodity price volatility, geopolitical shifts and industry consolidation made investors seek out safe havens in 2016 in the form of strong returns on invested capital, long-term fixed fees, regulatory stability, and access to regional and world markets,” Harry Weber, senior natural gas writer of S&P Global Platts, was quoted in the release as saying. “That helps explain why utilities and pipelines were able to differentiate themselves from other sectors, even as some operators struggled to boost revenue and underwent major transformations that included operational and management changes.”
Being recognized with a ranking in the Platts Top 250 is an accomplishment of prestige and honour in the energy industry. To attain the most comprehensive assessment of energy companies’ financial performance, four key metrics are used: asset worth, revenues, profits and return on invested capital. In addition to ranking the top energy companies overall performance, Platts also distinguishes best performance in nine industry subcategories and three global regions. And the fundamental and market data is extracted from a database compiled and maintained by S&P Capital IQ.
Inspite of the profits of Maharatna Company sliding down sue to crude oil prices, it still managed to rise from 20th to 11th rank in Platts, which shows considerable improvement in other factors namely asset worth, revenues and return on invested capital. And Refiners continuous efforts to strengthen their standings in the 2017 roster, buoyed by improved margins.
India’s strong representation in the Platts Energy Rankings is a reflection of the growing Asian dominance in the global energy market where much of the energy demand is predicted to come from in the coming years.