Glossary
2D Prospecting seismology
The purpose of 2D prospecting seismology is obtaining two-dimensional imagesof researched areas.
3D Prospecting seismology
The purpose of 3D prospecting seismology is obtaining three-dimensional imagesof researched areas.
Accounts receivable receivable turnover ratio
The accounts receivable turnover ratio = total sales receipts / accounts receivable (average for the period).
This is indicative of the average number of days required for debt collection. The smaller the number, the faster a company's accounts receivable produce cash and, therefore, the company's circulating assets become more liquid. If the number is large, it may indicate that the company has trouble collecting debts.
Added yield of oil resulting from the use of the metods of increasing oil recovery
Oil recovery is the ratio between the recoverable resource and total resource.
Assets to share capital ratio
Assets / share capital.
Assets turnover ratio
Assets' turnover ratio = the total amount of sales receipts / the amount of the assets.
This is indicative of the efficiency of the use of a company's total resources, regardless of their sources. The ratio shows how many times the cycle of production and circulation, generating profits, is completed annually.
Average daily yield
The average daily amount of oil produced by a well.
Average daily yield of new wells
The average daily amount of oil produced by new wells.
Average one filling station daily sales per federal districts
The average one filling station daily sales of good and services per federal districts.
Average selling prices
The average selling prices of produced goods and services.
Capital costs to cash flow generated by the principal activity ratio
Capital costs / cash flow generated by the principal activity.
Capitalization to cash flow generated by the principal activity ratio (P/CF)
P/CF = the amount of capitalization / cash flow generated by the principal activity.
P/CF (Price to Cash Flow ratio). Its small values may mean that a company has a lot of free cash left that may be used, for instance, for paying dididends or buying out shares, thus increasing the incomes of the shareholders.
Capitalization to total sales receipts ratio (P/S)
P/S = the amount of capitalization / total sales receipts.
The price/revenues ratio (P/S ratio) is a financial indicator equaling the ratio between the market capitalization of a company and its annual revenues. This indicator is among the basic indicators used for comparing the investment-wise attractiveness of public companies. Supposedly, the comparison may be done within a homogenious industry where reasonableinvestors expect revenues to generate according profits or cash flow. Small values of this indicator mean that the company in question is underestimated, while large number mean it is overestimated.
Corrected EBITDA
Corrected EBITDA = a company's EBITDA - its income received from subsidiaries + shares in EBITDA of subsidiaries.
Corrected EBITDA norm
Corrected EBITDA norm = EBITDA / Earnings.
Current liquidity ratio
Current liquidity ratio = circulating assets / current liabilities.
This shows whether a company has enough resources that may be used for repaying short-term debt. The lower number shows that a company has at least enough circulating assets to cover its short-term debt so as not to be threatened by bankruptcy. Having circulating assets exceeding debt more than3 times is also undesirable, illustrating the irrational structure of the assets.
DACF
Debt-Adjusted Cash Flow.
Financial indicator often used by oil companies, showing the after-tax operating cash flow, excluding expenses after taxes.
EBIT
EBIT, that is, Earnings Before Interest and Taxes or operational profits is an analytical index equaling the profits before loan interest and taxes are paid. This index is calculated on the bases of companies' financial reports and is used by investors for estimating the profitability of companies' principal activities.
EBIT norm
EBIT norm = EBIT / Earnings.
EBITDA
EBITDA = operational profits + depreciation + profits received from subsidiaries.
Аnalytical index equaling profits before loan interest, taxes and depreciation deductions are paid.
EBITDA norm
EBITDA norm = EBITDA / Earnings.
Enterprise value (EV)
EV = capitalization + total debt - available cash and its equivalents - short-term financial investments - issued loans.
This is the ammount of market capitalization of common stock and the market value of the debt.
EV/DACF
Often used in the financial ratio EV/DACF instead of EV/EBITDA as a valuation ratio. This ratio is useful in the oil industry as an after-tax calculation (applicable for industries with high resource taxes).
EV/EBITDA
This is the indicator comparing the value of a company with its EBITDA. It is often used as an indication of the number of years needed for the recoupment of investments.
Exportation of petroleum products
The structure of the exportation of petroleum products.
Exports structure as per various kinds of transportation
The ratios between various categories of vehicles used for transporting exported goods to foreign sales locations.
Free cash flow
Free cash flow = cash flow generated by the principal activity - capital investments.
Free cash flow is the cash flow a company may use after having financed all the investments it wants to make. There being a considerable free cash flow is regarded as attractive to investors.
Gazprom Neft's shares of petroleum product markets per Russia's federal districts
The share of the company in the petroleum products sales.
Gearing
The share of borrowed capital in a company's own capital = net debt / (net debt + share capital).
Gross profitability
Gross profitability = gross profits / earnings.
Injection wells stock
The resource of injection wells.
Instant liquidity
Instant liquidity = (available cash and its equivalents + short-term financial investments) / current debt.
Absolute liquidity ratio. A company's most liquid circulating assets are made up by cash accumulated in its bank accounts and cashier's safes as well as by negotiable securities. The ratio between available cash + the amount of negotiable securities and the amount of short-term loans is the absolute liquidity ratio. This is the most rigid criterion of liquidity showing what portion of short-term debt may be repaid immediately.
Light oil output
The outpute of gasoline and diesel fuel.
Mean net commercial capital turnover ratio
Mean net commercial capital turnover ratio = total sales receipts / net commercialcapital (average for the period).
This is indicative of how efficiently a company uses investments in its circulating capital and how this affects the growth of sales. The higher the number the more efficient is the company's use of its net circulating capital.
Net debt
Net debt = total debt - available cash.
Net extraction by divisions and subsidiaries
Extraction of oil/gas/hydrocarbons by consolidated subsidiaries.
Net Profit Margin (NPM After Tax)
Measures profitability as a percentage of revenues after consideration of all revenue and expense, including interest expenses, non-operating items, and income taxes. For a business to be viable in the long term profits must be generated; making the net profit margin ratio one of the key performance indicators for any business. It is important to analyze the ratio over time. A variation in the ratio from year-to-year may be due to abnormal conditions or expenses which need to be addressed. A decline in the ratio over time may indicate a margin squeeze suggesting that productivity improvements may need to be initiated. In some cases, the costs of such improvements may lead to a further drop in the ratio or even losses before increased profitability is achieved. Formula: Net Profit After Tax [EAT + DII + OI] / Net Revenue.
Net Profit Margin (NPM Pre-Tax)
Incorporates all of the expenses associated with ordinary business (excluding taxes) thus is a measure of the overall operating efficiency of the firm prior to any tax considerations which may mask performance. For a business to be viable in the long term profits must be generated; making the net profit margin ratio one of the key performance indicators for any business. It is important to analyze the ratio over time. A variation in the ratio from year-to-year may be due to abnormal conditions or expenses which need to be addressed. A decline in the ratio over time may indicate a margin squeeze suggesting that productivity improvements may need to be initiated. In some cases, the costs of such improvements may lead to a further drop in the ratio or even losses before increased profitability is achieved. Formula: Net Earnings / Net Revenue.
Net profitability
Net profitability = net profits / earnings.
Oil wells stock
The resources of oil wells.
Operating Margin
Ratio of operating income to sales revenue.
Operational profitability
Operational profitability = operational profits / earnings.
Output of refineries
The output capacities of petroleum refineries.
Price of a share / the basic profit per share (P/E)
P/E = the price of a share / the basic profit per share.
P/E, earnings multiple, a ratio between price and profit, is a ratio between the capitalization of a company and its annual profits. The indicator is among the basic coefficients used for estimating the investment-wise attractiveness of public corporations. Small numbers mean that the company looked at is underestimated while large number mean it is overestimated.
Production drilling
Drilling wells with the purpose of putting mineral deposits into operation.
Profitability of assets
The profitability of assets = the worth of assets / net profits.
This is a relative indicator of the efficiency of activities. It is obtained as a quotient of the division of the amount of net profits received by a company over a certain period by the amount of the company's total assets for the same period.
Profitability of non-negotiable assets
The profitability of non-negotiable assets = the worth of non-negotiable assets / net profits.
The non-negotiable assets' net profit ratio shows the efficiency of the use of non-negotiable assets of a company.
Profitability of share capital
The profitability of share capital is the total share capital / net profits.
The profitability of share capital is indicative of the rate of return on a company's invested own capital.
Prospecting drilling
The way of prospecting for mineral deposits by drilling wells.
ROACE
ROACE (profits earned by the average capital employed = operational return * (1 - effective profits tax rate) / (average debt + average share capital). This is calculated per annum.
Return on Capital Employed (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough returns to pay for its cost of capital.
Sales volume
The physical amount of sold goods and services.
Secured loans to total debt ratio
Secured loans / total debt.
This shows what portion of a company's total accounts payable is made up by secured loans.
Short-term loans to total debt ratio
Short-term loans / total debt.
This shows what portion of a company's total accounts payable is made up by short-term loans.
Structure of earning
The ratios between various categories of moneys earned through the sales of goods and services.
Structure of petroleum products output
The ratios between various categories of produced petroleum products.
Term liquidity ratio
Term liquidity ratio = highly liquid assets (cash+short-term investments+short-term loans+accounts receivable) / current liabilities.
The total liquidity ratio is calculated as that between the amount of circulating assets and short-term debt. It shows whether a company has enough resources to repay its short-term debt within a certain period. According to commonly accepted international standards, this ratio must be between 1 and 2. The lower number shows that a company has at least enough circulating assets to cover its short-term debt so as not to be threatened by bankruptcy. Having circulating assets exceeding debt more than 2 or 3 times is also undesirable, illustrating the irrational structure of the capital.
Total debt to EBITDA ratio
Total debt / EBITDA.
Total debt to share capital ratio
Total debt / share capital.
This is a way of showing the indicator of a company's financial independence.
Total debt to total capital ratio
Total debt / total capital.
This shows what portion of a company's assets is generated by loaned money.
Use of modern technologies and methods for increasing the yields of oil deposits
Oil recovery is the ratio between the recoverable resource and total resource.
Watering
The extent of the effects of surface and subsurface waters on the conditions of field development.
