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Conglomerates | Consumer | Financials | Industrials | Natural Resources
Power | Real
Estate | Technology | Telecoms | Transport
Natural resources
Raw materials companies show their mettle
Resource companies are still raking in good revenues
 No surprise that the world’s biggest consumers of raw materials are also the countries that field the largest number of FA100 winners in the natural resources category. The mainland’s big players include PetroChina, as well as China Petroleum & Chemical Corp and China National Offshore Oil Corp.
On the back of refined products that include diesel, gasoline, fuel oil, naphtha, jet fuel and lubricants, PetroChina catapulted its value to a record market cap of $1 trillion dollars in October. In the first three quarters of the year PetroChina boosted crude oil and natural gas output, as well as gasoline, diesel and kerosene production, but the downturn in the US economy and wildly fluctuating crude oil prices bring uncertain times.
Of the six Indian FA100 winners in the natural resources sector, top was the Oil & Natural Gas Corporation at number nine. The company produces 77% of the country’s crude oil and 81% of its natural gas. As one of India’s most profitable companies, its expansion comes on the back of rapid industrialisation and booming domestic demand. To try and meet the need Oil & Natural Gas Corporation is expanding exploration domestically, and in Brazil and West Africa.
At number 15, Reliance Industries also chalked up a record year. The corporate whose main subsidiaries are Reliance Petroleum and Reliance Retail is the largest private sector company in India. Exports rose to $20.8 billion, 13.4% of the country’s total. Revenues of $34.7 billion enabled Reliance to pay out the highest dividend that year in the Indian private sector.
As well as petrochemical products the FA100 natural resources sector is also home to steel companies and their importance in the region is shown by the fact that six companies made this year’s list, including Korea’s Posco, the world’s number four steelmaker.
While other industries are looking at a downturn in the year ahead, not so steel. In April the International Iron and Steel Institute said that notwithstanding the economic deceleration in the US and Europe, demand for steel would rise 1.3 billion metric tonnes or 6.7% compared to the previous year. Emerging markets and the unquenchable thirst from the BRIC countries of Brazil, Russia, India and China are driving this. Currently China uses 35% of the world’s steel supply as it supports infrastructure projects that include the construction of 50 new airports and 5,000 miles of new railway lines.
Despite sustained demand, steelmakers are having to contend with rocketing raw material costs for coal and iron ore. However, the world’s sixth largest steelmaker, Tata Steel, owns a sizeable chunk of its raw material assets in India so is in a stronger position than some of its rivals to deal with market pressures. Part of the huge Indian Tata Group, Tata Steel has operations in 26 countries and a commercial presence in more than 50. To meet burgeoning global demands Tata Steel is looking to expand. In August it signed a joint venture to build a $5 billion steel plant in Vietnam, which will provide 4.5 million tonnes of steel per year and during the year efficiencies in operations increased output from its domestic plants.
| Ranking by revenue |
| Country |
Company |
(million $) |
| CH |
Sinopec |
285,083 |
| CH |
PetroChina |
109,813 |
| TH |
PTT |
46,282 |
| IN |
Indian Oil Corp |
44,328 |
| CH |
Baoshan Iron & Steel |
25,155 |
| IN |
Reliance Industries |
24,764 |
| SK |
Posco |
23,902 |
| IN |
Oil & Natural Gas Corporation |
19,129 |
| SK |
S-Oil |
16,381 |
| HK |
China National Offshore Oil Corp |
11,931 |
| CH |
China Shenhua Energy |
10,798 |
| TW |
China Steel |
10,067 |
| CH |
Angang Steel |
8,486 |
| TH |
Siam Cement |
8,296 |
| SK |
Hyundai Steel |
7,947 |
| CH |
Wuhan Steel |
7,122 |
| IN |
Sterlite Industries |
5,407 |
| IN |
Tata Steel |
3,892 |
| TH |
PTT Exploration & Production |
2,941 |
| ID |
Inco |
2,326 |
| IN |
Hindustan Zinc |
1,898 |
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| Ranking by net profit |
| Country |
Company |
(million $) |
| IN |
Hindustan Zinc |
201.7% |
| IN |
Sterlite Industries |
175.4% |
| ID |
Inco |
119.3% |
| CH |
Wuhan Steel |
60.8% |
| IN |
Indian Oil Corp |
34.0% |
| IN |
Reliance Industries |
32.8% |
| TW |
China Steel |
26.8% |
| IN |
Tata Steel |
20.4% |
| CH |
China Shenhua Energy |
16.4% |
| IN |
Oil & Natural Gas Corporation |
15.4% |
| SK |
Posco |
14.7% |
| SK |
Hyundai Steel |
9.8% |
| CH |
Angang Steel |
6.1% |
| CH |
Sinopec |
4.9% |
| CH |
PetroChina |
2.4% |
| TH |
PTT Exploration & Production |
1.5% |
| HK |
China National Offshore Oil Corp |
1.1% |
| TH |
PTT |
-0.6% |
| CH |
Baoshan Iron & Steel |
-2.2% |
| SK |
S-Oil |
-4.8% |
| TH |
Siam Cement |
-17.2% |
| |
| Ranking by revenue growth |
| Country |
Company |
(million $) |
| IN |
Hindustan Zinc |
120.0% |
| IN |
Sterlite Industries |
85.8% |
| ID |
Inco |
73.9% |
| IN |
Reliance Industries |
37.5% |
| SK |
Hyundai Steel |
34.7% |
| CH |
Wuhan Steel |
26.1% |
| CH |
China Shenhua Energy |
26.0% |
| IN |
Indian Oil Corp |
24.3% |
| TH |
PTT |
23.2% |
| CH |
Baoshan Iron & Steel |
21.2% |
| CH |
PetroChina |
21.2% |
| CH |
Angang Steel |
19.7% |
| TW |
China Steel |
18.8% |
| CH |
Sinopec |
18.5% |
| IN |
Oil & Natural Gas Corporation |
16.2% |
| IN |
Tata Steel |
15.4% |
| SK |
Posco |
10.8% |
| TH |
PTT Exploration & Production |
6.5% |
| SK |
S-Oil |
4.6% |
| TH |
Siam Cement |
3.7% |
| HK |
China National Offshore Oil Corp |
2.0% |
| |
| Ranking by ROE |
| Country |
Company |
(million $) |
| IN |
Hindustan Zinc |
80.3% |
| ID |
Inco |
76.4% |
| IN |
Sterlite Industries |
57.6% |
| TH |
Siam Cement |
37.7% |
| IN |
Tata Steel |
35.4% |
| TH |
PTT |
30.0% |
| TH |
PTT Exploration & Production |
29.1% |
| IN |
Oil & Natural Gas Corporation |
29.0% |
| HK |
China National Offshore Oil Corp |
25.8% |
| IN |
Reliance Industries |
25.8% |
| TW |
China Steel |
24.1% |
| CH |
Wuhan Steel |
23.8% |
| IN |
Indian Oil Corp |
23.5% |
| SK |
S-Oil |
22.4% |
| CH |
PetroChina |
22.1% |
| CH |
China Shenhua Energy |
20.6% |
| CH |
Sinopec |
19.8% |
| CH |
Angang Steel |
17.9% |
| SK |
Posco |
15.9% |
| CH |
Baoshan Iron & Steel |
15.0% |
| SK |
Hyundai Steel |
13.8% |
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| Share price |
| Country |
Company |
Share price, Nov 1, 2007 |
Share price, Nov 1, 2008 |
Currency |
| CH |
Angang Steel |
26.7 |
4.6 |
HKD |
| CH |
Baoshan Iron & Steel |
17.9 |
4.6 |
CNY |
| HK |
China National Offshore Oil Corp |
16.4 |
6.3 |
HKD |
| CH |
China Petroleum and Chemical Corp (Sinopec) |
12.8 |
5.0 |
HKD |
| CH |
China Shenhua Energy |
49.9 |
14.0 |
HKD |
| TW |
China Steel |
43.8 |
24.1 |
TWD |
| IN |
Hindustan Zinc |
876.0 |
320.1 |
INR |
| SK |
Hyundai Steel |
85100.0 |
36600.0 |
KRW |
| IN |
Indian Oil Corp |
483.1 |
338.5 |
INR |
| IN |
Oil & Natural Gas Corporation |
1330.2 |
669.8 |
INR |
| CH |
PetroChina |
19.9 |
5.7 |
HKD |
| SK |
Posco |
627000.0 |
362000.0 |
KRW |
| ID |
Inco |
10210.0 |
1690.0 |
IDR |
| TH |
PTT Exploration & Production |
161.0 |
86.0 |
THB |
| TH |
PTT |
416.0 |
159.0 |
THB |
| IN |
Reliance Industries |
2671.6 |
1370.8 |
INR |
| TH |
Siam Cement |
254.0 |
102.0 |
THB |
| SK |
S-Oil |
82500.0 |
64600.0 |
KRW |
| IN |
Sterlite Industries |
1027.4 |
282.2 |
INR |
| IN |
Tata Steel |
885.2 |
210.1 |
INR |
| CH |
Wuhan Steel |
16.4 |
4.3 |
CNY |
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