Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Financial analyst specializing on corporate valuation. Long-term experience in analyzing and valuing listed and non listed companies in a wide range of business sectors in Europe, North America and internationally. Some of the sectors covered are financial services, industrials, high technology and real estate. Certified Equity Analyst by the Hellenic Capital Market Commission, Greece. Member of the Hellenic Association of Certified Securities Analysts (HACSA), Greece. Associate Member of the Chartered Institute for Securities & Investment (CISI), UK.

Specialties: Applying methods in corporate valuation, developing valuation models and writing equity research and valuation reports. Consulting services to companies with regard to their valuation drivers and potential corporate value, utilized in corporate deals such as mergers, acquisitions and sale of businesses. Specialized financial translations.

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

Equity Bottom-Up

<h3>Corporate &amp; Investment Highlights</h3>
<ul>
<li>ExxonMobil’s revenues for 2020 decreased to $ 181,502mn recording a major percentage drop of 31.49% compared to revenues of 2019. All profitability indicators showed a similar downward trend in 2020 (EBITDA, EBIT, EBT, EATAM). Partial or total lifting of restrictive measures across the global economy in 2021 contributed to the company’s fast recovery, setting it back on track to achieve higher profitability. The estimates for the revenues for 2021 range around $ 275,883mn while the announced nine-month revenues were $200,675mn.</li>
<li>Company’s revenues come mainly from Upstream, Downstream, and Chemical activities, accounting for an amount of 8%, 79% and 13% respectively of 2020 total revenues. In 2021 Downstream business unit recorded an increase of $ 504mn of revenue in the first nine months compared to revenues of the previous year due to higher margins on stronger industry refining conditions and reduced expenses. Upstream business unit surged the most among others company’s business units showing a significant growth compared to 2020 ($9,690mn in Q3 of 2021 compared to -$1,498mn in Q3 of 2020).</li>
<li>Net losses for 2020 amounted to -$22,440mn compared to the profitable (Net profit $14,340mn) 2019. For 2021 we expect earnings to increase to $21,740mn partly due to in line implementation of ExxonMobil’s business plan along with the lifting of Covid-19 restrictions, taking also into account that for the first nine months of 2021 earnings stood at $14,170mn. For 2022 we expect EATAM to range broadly around $23,707mn.</li>
<li>Expenditures (Capex) amounted to $16,329mn in 2020, compared to $23,980mn in 2019. Our estimates, based on the company’s management, is that Capex for 2021 will range around $19,000-21,000mn and for the year 2022 will range around $20,000-25,000mn due to short term capital spending on assets with the highest potential future value, including developments in Guyana and the U.S. Permian Basin, targeted exploration in Brazil and Chemicals projects aiming at high-value performance products.</li>
<li>ExxonMobil’ EBITDA for 2020 decreased to $18,284mn from $39,884mn of 2019. EBITDA stood at $35,177mn until Q3 of 2021 compared to $14,593mn during the corresponding period of 2020, benefiting from the significantly improved performance of the Upstream business unit, as well as from the consistently strong performance of the Downstream business unit. We expect EBITDA to range around $49,659mn boosted mainly from the Downstream business unit of the company.</li>
<li>Debt amounted to $47,182mn as of December 31st, 2020, compared to $26,342mn in 2019. More specifically, for 2020, long-term debt consisted of $41,026mn due in US dollars and $6,156mn representing the U.S. dollar equivalent at year-end exchange rates of amounts payable in foreign currencies. Based on the company’s reports, we assume that the debt will range around 43bn and 37bn for 2021 and 2022 respectively, achieving the company’s ambitions to improve the total debt to capital ratio around 20%.</li>
<li>ExxonMobil plans to grow investments that lower emissions, leveraging the company’s technology, scale, integration, and global footprint. Cumulative low-carbon investments are anticipated to be approximately $15 billion from 2022 through 2027. The company is also on track to achieve its 2025 emissions intensity reduction plans by the end of 2021 and expects to announce accelerated Scope 1 and Scope 2 reduction plans in the following months.</li>
</ul>

Corporate &amp; Investment Highlights

ExxonMobil’s revenues for 2020 decreased to $ 181,502mn recording a major percentage drop of 31.49% compared to revenues of 2019. All profitability indicators showed a similar downward trend in 2020 (EBITDA, EBIT, EBT, EATAM). Partial or total lifting of restrictive measures across the global economy in 2021 contributed to the company’s fast recovery, setting it back on track to achieve higher profitability. The estimates for the revenues for 2021 range around $ 275,883mn while the announced nine-month revenues were $200,675mn.
Company’s revenues come mainly from Upstream, Downstream, and Chemical activities, accounting for an amount of 8%, 79% and 13% respectively of 2020 total revenues. In 2021 Downstream business unit recorded an increase of $ 504mn of revenue in the first nine months compared to revenues of the previous year due to higher margins on stronger industry refining conditions and reduced expenses. Upstream business unit surged the most among others company’s business units showing a significant growth compared to 2020 ($9,690mn in Q3 of 2021 compared to -$1,498mn in Q3 of 2020).
Net losses for 2020 amounted to -$22,440mn compared to the profitable (Net profit $14,340mn) 2019. For 2021 we expect earnings to increase to $21,740mn partly due to in line implementation of ExxonMobil’s business plan along with the lifting of Covid-19 restrictions, taking also into account that for the first nine months of 2021 earnings stood at $14,170mn. For 2022 we expect EATAM to range broadly around $23,707mn.
Expenditures (Capex) amounted to $16,329mn in 2020, compared to $23,980mn in 2019. Our estimates, based on the company’s management, is that Capex for 2021 will range around $19,000-21,000mn and for the year 2022 will range around $20,000-25,000mn due to short term capital spending on assets with the highest potential future value, including developments in Guyana and the U.S. Permian Basin, targeted exploration in Brazil and Chemicals projects aiming at high-value performance products.
ExxonMobil’ EBITDA for 2020 decreased to $18,284mn from $39,884mn of 2019. EBITDA stood at $35,177mn until Q3 of 2021 compared to $14,593mn during the corresponding period of 2020, benefiting from the significantly improved performance of the Upstream business unit, as well as from the consistently strong performance of the Downstream business unit. We expect EBITDA to range around $49,659mn boosted mainly from the Downstream business unit of the company.
Debt amounted to $47,182mn as of December 31st, 2020, compared to $26,342mn in 2019. More specifically, for 2020, long-term debt consisted of $41,026mn due in US dollars and $6,156mn representing the U.S. dollar equivalent at year-end exchange rates of amounts payable in foreign currencies. Based on the company’s reports, we assume that the debt will range around 43bn and 37bn for 2021 and 2022 respectively, achieving the company’s ambitions to improve the total debt to capital ratio around 20%.
ExxonMobil plans to grow investments that lower emissions, leveraging the company’s technology, scale, integration, and global footprint. Cumulative low-carbon investments are anticipated to be approximately $15 billion from 2022 through 2027. The company is also on track to achieve its 2025 emissions intensity reduction plans by the end of 2021 and expects to announce accelerated Scope 1 and Scope 2 reduction plans in the following months.


Exxon Mobil

ExxonMobil: Equity Research Flash Note