Assessing the relationship between financial factors and the value of Russian oil and gas companies

Abstract

Subject. The study analyzes the relationship between financial factors and the value of Russian oil and gas companies. Objectives. The focus is on the assessment of the impact of financial factors on the value of Russian oil and gas companies from 2018 to 2022. Methods. We employ the correlation and regression analysis to determine the relationship between financial factors and the value of companies. Such indicators as capitalization, revenue, operating profit, net profit, assets and equity of companies are considered as financial factors. Results. The analysis of Russian oil and gas companies (PAO Rosneft, PAO Lukoil and PAO Gazprom Neft) established a direct relationship between financial factors and the company value. So, PAO Rosneft has the highest correlation between revenue (0.965) and equity (0.954). For PAO Lukoil, the correlation coefficient between capitalization and revenue is 0.96, between capitalization and assets - 0.96, between revenue and assets - 0.99. For PAO Gazprom Neft, the correlation coefficient indicates a close relationship between the company's assets and equity (1.00). Conclusions. The results obtained can be applied in value management of oil and gas companies in modern conditions, in decision-making process in investment and management activities. The findings have practical and scientific significance and can be useful by investors, company executives, and analysts of the Russian oil and gas market to build more effective forecast models of capitalization of oil and gas companies.