National Oilwell Varco National Oilwell Varco reported its fourth quarter and full year 2015 results on 3rd February. The company’s fourth quarter net income was $ 85 million, or $ 0.23 per fully diluted share, excluding other items that included pre-tax charges of $ 1,634 million for goodwill and other intangible asset write-downs, $ 139 million for restructuring and other charges and $ 7 million in FX losses due to currency devaluation in Argentina. The net income was down from $ 0.61 in the third quarter of 2015 on a comparable basis. The company’s gross margin declined 210 basis points to 19.1 %. EBITDA was $ 308 million or 11.3 % of sales.
Its cash from operation for the quarter increased 11% and for the year 17% year-on-year basis. This strong growth for its operating cash flow has come in spite of CNI’s payment to net interest of approximately $119 million for the quarter and $439 for the year. In consequence of this strong operating cash flow, the company generated free cash flow of C$632 million for the quarter and approximately C$2.3 billion for the full year, up notably from the prior year periods as shown in the table
By decentralizing its operations into numerous subsidiaries, Enron was able to hide huge liabilities and derivative losses of their financial statements. However as these started to accumulate, creditors and investors demanded their money back but Enron was unable to meet their requirements with a negative cash flow, thus going bankrupt. Moreover, Enron’s finances were an impenetrable maze of carefully crafted imaginary transactions between the subsidiaries and itself, which masked its true financial state and therefore could not seek help when needed. The importance of internal controls in a business’ corporate culture is established through the beliefs and values of upper management. Enron focused on maintaining the appearance of value rather than creating it, thus fostering a competitive and risk-tasking environment that promoted the use of unethical accounting practises.
Current ratio = Current assets/current liabilities = $1,085 million / $450 million = 2.41 2. Total Debt to equity = Total liabilities / Stockholder’s equity Total liabilities for 2009 = $1003 million Stockholder’s equity for 2009 = $1,845 million Ratio of total debt to stockholders’ equity for 2009 = $1,003/$1,845 = 54.36% 3. Gross profit rate = Gross profit / Sales Gross profit for 2009 = $2,362 million Gross margin percentage for 2009 = $2,362 / $3,540 = 66.72% 4. Return on sales = Net income / Sales Net income for 2009 = $272 million Sales for 2009 = $3,540 million Return on sales for 2009 = $272 / $3540 = 7.68% 5. Return on stockholders’ equity = Net income / Average stockholders’ equity Net income for 2009 = $272 million Average stockholders’ equity for 2009 = $1,732 million Return on stockholders’ equity for 2009 = $272 / $1,732 = 15.70% 6.
As a result of the fraud investigations, the company was required to file for bankruptcy in December 2001. Enron was “a provider of products and services related to natural gas, electricity and communications to wholesale and retail customers.. Throughout the late 1990s, Enron was almost universally considered one of the country 's most pioneering companies -- a new-economy maverick that forsook musty, old industries with their cumbersome hard assets in favor of the freewheeling world of e-commerce. The company continued to build power plants and operate gas lines, but it became better known for its unique trading businesses. Besides buying and selling gas and electricity futures, it created whole new markets for such oddball "commodities" as broadcast time for advertisers, weather futures, and Internet band width.
Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world 's largest oil companies; as of 2014. Chevron 's alternative energy operations include geothermal, solar, wind, biofuel, fuel cells, and hydrogen, Chevron 's downstream operations manufacture and sell products such as fuels, lubricants, additives and petrochemicals.
Must be remember the 1973 Arab Embargo which created shortfalls as similar to 1979. The price of a crude oil in August 1990 cost $16 per barrel to $28 per barrel then climbed to $36 per barrel in September. To combat the ongoing crisis, Non OPEC countries supplemented OPEC production increases to off-set the 7 percent shortfall in world supplies. These initiatives were supported by conducting refinery upgrades so that crude oil be converted into light petroleum products and improvements in energy efficiency. Despites the solutions to the ongoing problems, the oil price spiked due to uncertainties although it was short lived as Saudi Arabia and Iran released oil stocks to gain revenue during the war thus calming the oil markets at the same
Chevron (CVX) has pulled up impressively from its 52-week lows that it had hit in late August, appreciating almost 30% in less than three months. The pick-up in Chevron’s stock price of late can be attributed to marked improvement in oil prices in the past three months. However, of late, oil prices have started faltering on the back of different reasons ranging from an increase in stockpiles to a strong dollar. In fact, looking ahead, it is likely that oil prices will remain under pressure in the short run, and this could weigh on Chevron’s stock price. Let’s see why.
The company was formed as a merger between Houston Natural Gas and InterNorth. According to its Fortune 500 profits it was deemed one of the world's major electricity, natural gas, communications and paper companies. At Enron’s peak, a share in the company was worth $90.75 with the company’s claimed revenues topping $100 billion. The Fall of Enron Although Enron’s financial statements gave consumers and stakeholder’s reason to believe the company was flourishing, bankruptcy followed in
Enron also introduces itself in the water sector with the company name azurix which later on floats in the NYSE. Azurix failed to become successful in the water sector. Enron was the second largest company in power sector of U.S. but in Oct, 2001 this company was filed as bankrupt. Reason for Bankrupt: Enron Corporation performs well in the U.S and its stock price was also very high as compare to other companies in energy sector. But due to some frauds this company can be filed as bankrupt in Oct, 2001.