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The 2016 rating is based on the TSR analysis of about 2 thousand companies around the world from 2011 to 2015.
TSR shows income in the form of increase in share price and dividend payments for a certain period. This is the most comprehensive evaluation of increase in shareholder value.
Yearly average total shareholders return - is the average size of TSR that a company brings in each year of the analyzed five-year period.
As noted in the study, the maximum efficiency is very difficult to achieve, yet to maintain this level is the biggest challenge.
For 18 years, during which BCG has published its ‘Value Creators’ rating, the top ten with the highest capitalization hosted 89 companies.
However, more than half - a total of 46 companies - managed to do it only in a five-year period. In other words, they were able to get into the favorites, but had been excluded from it in subsequent years.
Only 19 companies (about 21% of the total) hit the top ten for three or more years.
Why is it so difficult to maintain maximum efficiency?
"Over time, efficiency of companies in the market, as a rule, is gradually reduced to average, - said Jeffrey Kotzen, senior partner and global leader of the shareholder value topic at The Boston Consulting Group. - To become a leader on the size of the added value and to take a place in our top ten, a company need to significantly exceed the investors’ expectations. I do not mean that it should just exceed one or two points of the expected earnings in any one quarter. I'm talking about achieving results that are radically changing the business development path. To stay in the ranking, the company must do so over and over."
Companies, of course, can avoid gradual reduction in the average efficiency. However, it is extremely difficult to maintain high performance.
"Constant returns to the starting position are in the nature of capital markets, - says Frank Plaschke, BCG’s partner in Munich. - If a company cannot find a way to exceed the expectations of investors once again, not just meet them, it is unlikely that it will increase the TSR level ".
Below is a list of the top 10 oil companies.
1. Cheniere Energy
Country: USA
Total shareholder yield: 46.5%
Market value: $ 8.8 billion
The American company is based in Houston, Texas. The company's activities linked to the liquefied natural gas. In particular, the company serves Sabine Pass LNG terminal.
In addition, Cheniere is engaged in construction of gas liquefaction plant Sabine Pass Liquefaction Project.
2. Tesoro
Country: USA
Total shareholder yield: 43.3%
Market value: $ 12.7 billion
This is one of the largest independent refiners in the United States. The company is included in the Fortune 100’s list.
The company owns six refineries in the US with a total capacity of 875 th. barrels per day.
3. Valero Energy
Country: USA
Total shareholder yield: 30%
Market value: $ 34 billion
Valero Energy Corporation is the US vertically integrated oil company, headquartered in San Antonio, Texas.
Currently, the company owns 18 refineries with total capacity of 3.3 million barrels of oil per day. The company’s retail chain consists of more than 5 thousand gas station.
4. Magellan Midstream Partners
Country: USA
Total shareholder yield: 24.3%
Market value: $ 15.4 billion
Magellan has the longest pipeline system, which transmits recycled oil across the country.
As stated on the company's website, they have the ability to cover almost 50% of the country's refining capacity, and store more than 95 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
5. Tatneft
Country Russia
Total shareholder yield: 20.8%
Market value: $ 9.4 billion
Tatneft is one of the largest Russian oil companies, an internationally recognized vertically integrated holding.
The company’s production complex steadily develops oil and gas production, refining, petrochemicals, automobile tires complex, gas stations and some more service structures.
Tatneft is also participating in the financial (banking and insurance) sector.
6. Ultrapar Holdings
Country: Brazil
Total shareholder yield: 20.8%
Market value: $ 8.3 billion
Ultrapar Holdings is a Brazilian company that operates in the field of fuel supply, production of chemical products for special purposes, in the oil products storage sector and the pharmaceutical industry with the help of an extensive system of subsidiaries.
7. Enbridge
Country: Canada
Total shareholder yield: 13.7%
Market value: $ 28.4 billion
Enbridge is a Canadian energy company, part of the S&P/TSX 60 index calculation base.
Headquartered in Calgary. The main activity is the construction of pipelines for crude oil and petroleum products, pipelines for natural gas and natural gas distribution.
Employees of the company are mainly situated in Canada, the US and South America.
8. Energy Transfer Equity
Country: USA
Total shareholder yield: 12.1%
Market value: $ 14.4 billion
This American energy company is included in the Fortune 500 list. The company is based in Dallas, Texas. It operates in natural gas storage and transportation sector.
9. NOVATEK
Country: Russia
Total shareholder yield: 11.8%
Market value: $ 24.8 billion
NOVATEK is Russia's largest independent natural gas producer.
The company is engaged in the exploration, production, refining and marketing of natural gas and liquid hydrocarbons, and has twenty years of experience in the Russian oil and gas industry.
10. EOG Resources
Country: USA
Total shareholder yield: 9.8%
Market value: $ 38.9 billion
EOG Resources is largest independent US producer of oil and natural gas. The company's headquarters is based in Houston, Texas.
The company works on territories of the US, Canada, Trinidad and Tobago, and the North Sea.
The company was spun off as an independent structure in 1999 from US giant Enron (a division within the group called Enron Oil & Gas Company).
source: bcg.com
TSR shows income in the form of increase in share price and dividend payments for a certain period. This is the most comprehensive evaluation of increase in shareholder value.
Yearly average total shareholders return - is the average size of TSR that a company brings in each year of the analyzed five-year period.
As noted in the study, the maximum efficiency is very difficult to achieve, yet to maintain this level is the biggest challenge.
For 18 years, during which BCG has published its ‘Value Creators’ rating, the top ten with the highest capitalization hosted 89 companies.
However, more than half - a total of 46 companies - managed to do it only in a five-year period. In other words, they were able to get into the favorites, but had been excluded from it in subsequent years.
Only 19 companies (about 21% of the total) hit the top ten for three or more years.
Why is it so difficult to maintain maximum efficiency?
"Over time, efficiency of companies in the market, as a rule, is gradually reduced to average, - said Jeffrey Kotzen, senior partner and global leader of the shareholder value topic at The Boston Consulting Group. - To become a leader on the size of the added value and to take a place in our top ten, a company need to significantly exceed the investors’ expectations. I do not mean that it should just exceed one or two points of the expected earnings in any one quarter. I'm talking about achieving results that are radically changing the business development path. To stay in the ranking, the company must do so over and over."
Companies, of course, can avoid gradual reduction in the average efficiency. However, it is extremely difficult to maintain high performance.
"Constant returns to the starting position are in the nature of capital markets, - says Frank Plaschke, BCG’s partner in Munich. - If a company cannot find a way to exceed the expectations of investors once again, not just meet them, it is unlikely that it will increase the TSR level ".
Below is a list of the top 10 oil companies.
1. Cheniere Energy
Country: USA
Total shareholder yield: 46.5%
Market value: $ 8.8 billion
The American company is based in Houston, Texas. The company's activities linked to the liquefied natural gas. In particular, the company serves Sabine Pass LNG terminal.
In addition, Cheniere is engaged in construction of gas liquefaction plant Sabine Pass Liquefaction Project.
2. Tesoro
Country: USA
Total shareholder yield: 43.3%
Market value: $ 12.7 billion
This is one of the largest independent refiners in the United States. The company is included in the Fortune 100’s list.
The company owns six refineries in the US with a total capacity of 875 th. barrels per day.
3. Valero Energy
Country: USA
Total shareholder yield: 30%
Market value: $ 34 billion
Valero Energy Corporation is the US vertically integrated oil company, headquartered in San Antonio, Texas.
Currently, the company owns 18 refineries with total capacity of 3.3 million barrels of oil per day. The company’s retail chain consists of more than 5 thousand gas station.
4. Magellan Midstream Partners
Country: USA
Total shareholder yield: 24.3%
Market value: $ 15.4 billion
Magellan has the longest pipeline system, which transmits recycled oil across the country.
As stated on the company's website, they have the ability to cover almost 50% of the country's refining capacity, and store more than 95 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
5. Tatneft
Country Russia
Total shareholder yield: 20.8%
Market value: $ 9.4 billion
Tatneft is one of the largest Russian oil companies, an internationally recognized vertically integrated holding.
The company’s production complex steadily develops oil and gas production, refining, petrochemicals, automobile tires complex, gas stations and some more service structures.
Tatneft is also participating in the financial (banking and insurance) sector.
6. Ultrapar Holdings
Country: Brazil
Total shareholder yield: 20.8%
Market value: $ 8.3 billion
Ultrapar Holdings is a Brazilian company that operates in the field of fuel supply, production of chemical products for special purposes, in the oil products storage sector and the pharmaceutical industry with the help of an extensive system of subsidiaries.
7. Enbridge
Country: Canada
Total shareholder yield: 13.7%
Market value: $ 28.4 billion
Enbridge is a Canadian energy company, part of the S&P/TSX 60 index calculation base.
Headquartered in Calgary. The main activity is the construction of pipelines for crude oil and petroleum products, pipelines for natural gas and natural gas distribution.
Employees of the company are mainly situated in Canada, the US and South America.
8. Energy Transfer Equity
Country: USA
Total shareholder yield: 12.1%
Market value: $ 14.4 billion
This American energy company is included in the Fortune 500 list. The company is based in Dallas, Texas. It operates in natural gas storage and transportation sector.
9. NOVATEK
Country: Russia
Total shareholder yield: 11.8%
Market value: $ 24.8 billion
NOVATEK is Russia's largest independent natural gas producer.
The company is engaged in the exploration, production, refining and marketing of natural gas and liquid hydrocarbons, and has twenty years of experience in the Russian oil and gas industry.
10. EOG Resources
Country: USA
Total shareholder yield: 9.8%
Market value: $ 38.9 billion
EOG Resources is largest independent US producer of oil and natural gas. The company's headquarters is based in Houston, Texas.
The company works on territories of the US, Canada, Trinidad and Tobago, and the North Sea.
The company was spun off as an independent structure in 1999 from US giant Enron (a division within the group called Enron Oil & Gas Company).
source: bcg.com
