Data is the new oil V – yet another oil major!

It must be really disappointing (for some people at least) to see that the largest companies in the world (measured by revenue) are still mainly oil-majors and (car-) manufacturers. The good news is that our list is a little bit outdated and things might have changed in between. Later we will sort our 3D-graph on 2018-revenue and see what the actual order will be. For now the next company in the queue is British Petroleum, better known as BP. Not a lot of work this time, as oil is still traded in dollars and therefore even this company from the UK publishes its annual reports in US Dollars.

Photo by Jerzy Górecki on Pixabay

The collection of the data was just routine. As always I checked the annual reports for the section of consolidated financial statements and picked Revenue, net Profit, Equity and total Assets and put the twelve numbers in the input-file (well, actually the excel which I exported as a .csv after the update).

This time I didn’t forget to increase the number of companies from 3 to 4. After starting the AnRep3D-generator I selected the .csv-file for input and again for output.

 

The generator automatically changes the extension from .csv to .htm and this way the output-file gets exactly the same name as the input-file. The output-file (the 3D-graph) was created in less than a second and the 3D-graph below was available!

 

 

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.

Now we have four companies – three oil (and gas) majors and one car-manufacturer. What do we see? Well, the first observation made from the front-view is that BP has less equity than the others. Actually the equity is less than half when compared to ExxonMobil or Royal Dutch Shell and it’s also less than Volkswagen AG’s equity. Yet the revenue is certainly higher than VW’s and even slightly higher than ExxonMobil’s, although not as high as the revenue for Shell (all 2018). Then, looking at the last we see the same remarkable drop we noticed for ExxonMobil from 2013 to 2018 (which was present for Shell as well, but less impressive). Comparing profit however, BP’s green roof is thinner than the others. In 2013 BP’s roof looks a lot thicker than Shell’s roof so things might go up and down a little bit in different patterns.

Then it’s time to move the graph more than the gently tilting we did so far. Using the right mouse-button and moving upwards at the same time will move the 3D-graph to the back and make it smaller. We have to do this create some space to be able to see the graph from the top. We can left-click the mouse and move down at the same time to get a top-view. If the image doesn’t appear in the centre, double-clicking (left) will recentre the graph. Try for a while until the behaviour of the environment (it’s HTML5) becomes more intuitive.

3D-graph of large companies - topThe top-view shows that BP’s total assets hardly increased and since the equity went up from 2008 to 2013 and then down again to 2018, the total liabilities certainly did not increase a lot – similar to the other oil majors, although they managed to keep their equity stable after 2013. The pattern doesn’t look like a divestment and neither does it look like an acquisition.

Somehow between 2013 and 2018 BP must have lost money – more money than the others and therefore probably not related to the market in general. We know the Gulf of Mexico oil spill (Deepwater Horizon) was in 2010, but the real impact was maily after 2013 because of all the legal procedures which took time. A series of low profit and even losses can be observed in this period (the annual reports for 2014-2017 are not visualised in this graph but if they would have been in, a couple of red roofs would have been visible). The year 2017 was still a year with a low profit and after this period 2018 is back again with a reasonable profit, but a reduced equity.

Then we can see some similarities between the Gulf of Mexico oil spill and the Volkswagen emission scandal, although the latter was not an accident. Why didn’t we see a similar impact in the Volkswagen “buildings”in this 3D-graph? I don’t know, but one of the reasons might be the timing. The discovery of the emissions scandal was at the end of 2015 – about five years later than BP’s accident. The impact for Volkswagen might still be waiting to happen and not have had its full size yet. The alternative is that the impact is very different from what happened to BP – for whatever reason. A small dip in the profit was observed for 2016, but for now we just cannot tell.

For more background on the 3D-graph generator, download our white-paper  together with the 3D-graphs (html-format, available as zip). Or go to our website and download the free demo-package to try the 3D-graph generator yourself. New posts will be announced on Twitter: @AnRep3D and our Youtube-channel offers short explanatory movies on the 3D-graphs and the generator creating them.

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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