Data is the new oil IV – before this oil war

Yes, we live in “interesting times”.  The oil majors are still the largest industries in the world (measured by revenue) and that’s why we started with ExxonMobil and will add Royal Dutch Shell now. When I choose this subject, I had no idea of an oil war and neither was the impact of the new Corona-virus as large as it is now.

Old-fashioned oil harvestingPhoto by jplenio on Pixabay

The shares of these companies dropped like hardly ever seen, but we are not looking at the present situation. The series we picked was 2008, 2013 and 2018 to be sure we have annual reports available. The impact of the current events will only be shown in the next quarterly reports or in the annual reports of 2020 – expected in somewhere around the end of Q1 2021. Of course we could use AnRep3D to visualise something like total market value of shares outstanding and it would be impressive to see how the towers would change to stubs, but that’s not what we are doing right now.

Remember: the free demo-package can be downloaded from our website. It presents only one company for one period in time (so only one “building”) but companies can purchase a licence and if you are a consumer you will get it for free. Well, for free… you have to send in your graph (for email, see website), created with the demo-package. Good luck with that!

As said above, we added Royal Dutch Shell to the graph which already held ExxonMobil. It’s interesting to see that currently Royal Dutch Shell is the larger one, because ExxonMobil’s revenue dropped more over time. Yet some similarities can be observed and the revenue of Royal Dutch Shell dropped as well. At least partially this will be the result of divestments made, but disasters and economic events took their toll as well.

Let’s have a look at the front, where we can see the widths of the buildings, representing the (shareholder’s) equity. Of course we can also see the height (revenue) and the thickness of the green roofs. The green indicates a profit rather than a loss which would have shown a red roof.

ExxonMobil and Royal Dutch Shell 3D 1We can see the equity growing from the back (2008) to the front (2018). As always I won’t give any interpretation or advice, but it’s a remarkable fact. Despite the dropping revenue, the profit remained healthy. Of course it is better to have a look at the real 3D-graph as this screenshot is a poor representation of such a rich visualisation.

Double-clicking the screenshot will open the 3D-graph in your browser. For maniputalion of this 3D-graph: Clicking the right mouse-button and moving the mouse up and down at the same time, will zoom the graph in and out. Clicking left while moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and readjusts the centre at the same time. Just try it – If you don’t know how to get the normal position back, refresh the page in your browser.

ExxonMobil and Royal Dutch Shell 3D 2Then we can have a look from aside. Here we can see that the total assets (the depth of the building) have grown as well. This means that the total balance has grown and total liabilities also went up.

 

A view from top (or bottom for that matter) will show us the ratio between total assets and equity.

ExxonMobil and Royal Dutch Shell 3D 3The difference between depth and width represents the total liabilities of course as the drawing in the screenshot explains. Now we can clearly see that for Royal Ducth Shell the equity went up in two steps with the total liabilities following the same pace – leaving the bearing more or less the same. For ExxonMobil we see both equity and total assets being lower in 2018 again – again with the gearing being more or less the same.

That’s it for now. The new posts will be announced on Twitter: @AnRep3D  Our Youtube-channel offers short explanatory movies on the 3D-graphs and the generator creating them. For more background, download our white-paper  together with the 3D-graphs (html-format) discussed (available as zip).

About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison. As per 2021 a second product is available: EnRep3D. It is meant to visualise energy. Although the engine is the same, the texts, manual, website and examples (including blogposts) are focused at energy.
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