Financial Performance of Santos Limited and Woodside Petroleum
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Added on 2022/12/23
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This article analyzes the financial performance of Santos Limited and Woodside Petroleum, two Australian oil and gas companies. It examines key trends, ratios, and profitability measures to assess their performance and prospects for the future.
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ACCOUNTING FOR MANAGERS
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Introduction Santos Limited was liquidated and registered on the Australian stock market in 1954 under the code STO. Santos is an Australian group, based in Adelaide, South Australia. Its core activities include the exploration, supply and supply of oil and gas for the energy needs of national, industrial and key companies in Australia and Asia. It has five long-lived gaseous gasoline sources which are GLNG, PNG LNG. Santos' operations are primarily concentrated in Australia and Asia Pacific and have a 1900 workforce. Santos is recognized as a key player in rural gas suppliers and LNG exporters (Santos Publishers, 2020). In evaluatingSantos 'proven performanceand prospectsfor future executions,Woodside Petroleum Ltd was selected as Santos' inspiring benchmark. Woodside Petroleum is also an Australian group and has settled in Perth, Western Australia. The company was founded in 1954 and was once known as Woodside Oil NL. In 1971, the company was confirmed as Woodside Petroleum Limited "Woodside" and registered on the Australian Stock Exchange under the code WPL. Unlike Santos, Woodside's business line includes the exploration, creation and supply of oil and gas for energy needs. Additionally, Woodside is recognized as one of Australia's leading national gas suppliers and largest gasoline producer. Woodside has a production force of over 3,600, a larger worldwide presence, and nearly double the size of the piece facing Santos. Financial Performance The implementation of Santos currency will be halted by the use of cash proceeds in the last few years (2016 to 2020). Methods of analysis include pattern (uniform) analysis, “SGR” growth rate, the compilation of working capital calculations including the cash turnover cycle and other key allowances for further analysis. Santos benefits, liquidity and cash risk. The forest side will be used as a benchmark to study Santos' silver value. Despite the fact that Woodside is larger and more complex in terms of market size and total assets, strategies for using the pattern (uniform) and proportion analysis (vertical) will help make a budget summary of a consistent size to allow for a similar analysis between two distinct group dimensions.
Key Trend (Horizontal) Analysis 1. Sales and Production volume growth Santos 12345 - 20.00 40.00 60.00 80.00 100.00 120.00 ProductionsSales Woodside 12345 10.0 30.0 50.0 70.0 90.0 110.0 130.0 Series1Series2 The development of the Santos industry reflects a continuous decline in development from 2016 to 2018. After 2018, the improvement in contracts is indicative of an increase in the cost of oil and gasoline by Santos. The group continued its most notable development in 2019 with around 13% of contracts outstanding. In 2020, the development rate dropped to 13% due to the negative impact of COVID-19 on sector aggregation.
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On the other hand, the size of Woodside's industry and production reflects lumps of variability in industry size and creative development. A 20% improvement in Woodside's industry volume shows that the organization with Covid-19 has had a significant impact. Perhaps the explanation is the overabundance of oil interests generated in the market by individuals. As a result, the Woodside show is far superior to the Santos show in 2020. 2. Key Trend (Horizontal) analysis on Income Statement Santos Woodside Santos showed an annual decline in revenue development for five years, and overall profit declined further from 2016 to 2020 with a 44% decrease in 2020. Labor costs have not seen any impact over the past few years. The cost of borrowing fell the same way from 2016 to 2020 and the sharp fall in the cost of accounting in 2018 followed by a 2% increase in the cost of accounting in 2020. Net income after impairment (NPAT) also fell year on year with over 100% in 2020. Santos total revenue up 11% due to higher industry volumes since PNG LNG started
full formation after the 1H18 earthquake and higher volumes of gas as a result of Quadrant Energy cooling offset by lower item costs. The average known cost of oil fell 4% to $ 71.99 / barrel and the average known cost of LNG fell 1% to $ 9.77 / mmBtu. Moreover, in 2020, trading revenue increased 10% to $ 4 billion; the average known cost of oil fell 4% to $ 71.99 / barrel. Santos ’big skins in Western Australia and Basin Cooper won a strong benchmark award. In addition, Woodside showed a decrease in revenue from 2015 to 2017, followed by a strong expansion in 2018 and a decrease of 7% in 2019. Full benefit follows the development of the revenue model -in, however with a sharper decline in net revenue of 19% in 2019. Woodside was broadcasting a full-year production of 100.3 million barrels of oil itself and making the most safe run. best ever despite difficult external conditions in 2020. Labor spending showed a decline from 2016 to 2018 and is still declining due to the impact of Covid -19 on the group. There is also an extension model for the Woodside account cost. Because of this weakness, NPAT Woodside decreased 25% in 2020 compared to 2019. From studying the model, Santos has extended a more controlled and progressive term in terms of income and welfare development, while continuing to operate at a lower year-over-year cost than Woodside. Hosting to create contracts from the third purchase comes along with the Santos Highlands to develop contracts beyond the normal creation limit. Key Ratios Cash Conversion Cycle Thecashconversioncycleisusedtomeasuretheworkingcapitalproductivityofan organization. This is the amount of time an organization can quickly convert to cash available from the sale of shares and from raising money from credit as a trade to paying off debt. Below is the proportion of Santos's relationship with Woodside in the currency exchange cycle: Cash Conversion Cycle 2017201820192020 Trade Receivables Turnover (Days)28353532 Inventory Turnover (Days)254743
40 Trade Payables Turnover (Days)59667268 Cash Conversion Cycle (Days)121664 2017201820192020 Trade Receivables Turnover (Days)21191718 Inventory Turnover (Days)35312422 Trade Payables Turnover (Days)45403129 Cash Conversion Cycle (Days)910911 Despite Woodside having fewer credit days and stock rotation, Santos is able to withdraw its debt payment and improve its currency exchange cycle on much lower days in a recent Woodside relationship with Woodside. Profitability Gross Profit Gross Profit Margin (%) Year20162017201820192020 Santos18%17%26%36%33% Woodside40%45%51%50%44% The net loss after tax following a $ 357 million valuation includes the recently reported hurdles, mainly due to lower oil value assumptions. Predictive use of a trained work model with minimal effort will support cost and efficiency reductions, with unit creation costs 10% lower at $ 6.50 / boe. At the start of COVID-19 in mid-2020, Santos implemented reporting of its assets, revenues, and retention of permanent representatives. In defense, Santos has requested and received $ 4 million in installments from JobKeeper from the Australian government through September 2020. By November 2020, the impact of COVID-19 on Santos clearly would not have been anticipated, so Santos paid this sum to whole. to the public authority in December 2020.
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Woodside has an overall net deficit after cost of $ 4.028 million, and was impacted by non- monetary weaknesses and the termination of charges agreements reported in July 2020. A supported operating major provided hidden net gain after cost. (NPAT) of USD 447 million. Dividend Payout ratio Dividend Payout ratio Year20162017201820192020 Santos1%0%0%32%34% Woodside60%72%71%92%224% The Board expects to fully deliver a final profit of US5.0 cents per share, based on the previous year's previous profit. This will bring full year profits to 7.1 cents for each full stamp allowance, covering 20%of free income and in line with the organization's operating profit strategy which aims for a range of 10% to 30% payment of free income. Woodside bosses reported a final profit of 12 cps per offer (cps), bringing the full-year profit to 38 cps. Profit depended on the NPAT base of $ 447 million. Liquidity Current Ratio Current Ratio: Current Asset: Current Liabilities Year20162017201820192020 Santos1.101.902.071.201.65 Woodside0.950.930.972.314.11 Santos has managed to keep their current ratio above 1 over the past five years while Woodside has improved their liquidity position from below 1 to 4.11 in 2020. Woodside do have huge cash on hand. Financial Leverage 1. Long term interest-bearing loan: Equity
Long Term Interest Bearing Loan: Equity Year20162017201820192020 Santos0.550.680.520.530.50 Woodside0.280.310.310.220.32 2. Interest coverage ratio Interest Coverage Ratio Year20162017201820192020 Santos5.01-4.07-1.075.174.12 Woodside25.0324.7918.2310.553.41 Santos started to progress with higher interest rates from 2015 to 2017. As Santos' operating profit progresses, Santos can reduce its profits by the amount of credit and currently the inclusion allowance rate is flat. In 2020 you will receive a positive interest inclusion allowance by 4.12 but it is lower than the 2019 benefit inclusion allowance.