FINANCIAL

HEALTH OF
AN
PETROBRAS / MARATHON OIL
CORP.
Current market status

   Mkt Cap:           US $ 254 BILLION     US $ 37.57 BILLION
Current price:    US $ 57.73 US $ 53.07
   52Wk High:      US $ 77.61 US $ 67.04
   52Wk Low:       US $ 24.38 US $ 43.24
  Shares:               4,387.04M 707.94M
   Beta:                  1.39 1.45
 Business Description
Exploration and Production (E&P), 
Oil Sands Mining (OSM) segment mines, extracts and 
transports bitumen from oil sands deposits produce and 
market synthetic crude oil and by-products; 
Refining, Marketing and Transportation (RM&T) of 
crude oil and petroleum products, 
Integrated Gas (IG) markets and transports products 
manufactured from natural gas, such as liquefied natural 
gas (LNG) and methanol. 
  Performance of Marathon Oil
Corp.
1. Revenue (Million US $)

FY2006 FY2007 % CHANGE

64,896 64,552 .5%

2. EBITDA (Million US $)
FY2006 FY2007 % CHANGE
9,932 7,598 24%

3. Net Profit (Million US $)

FY2006 FY2007 % CHANGE
5,234 3,956 25%
 Continued
4. Average Shares Outstanding (in Millions)

FY2006 FY2007 CHANGE

722 695 27

5. Long Term Debt (Million US $)

FY2006 FY2007 % CHANGE
3,060 6,084 100%

6. Stockholder’s Equity (Million US $)

FY2006 FY2007 % CHANGE
14,607 19,223 30%
 Continued
7. Debt Equity

FY2005 FY2006 FY2007

30% 20% 30%

8. Total Assets (Million US $)

FY2006 FY2007 % CHANGE
30,831 42,846 40%

9. Total Asset Turnover Ratio

FY2005 FY2006 FY2007
2.25 2.1 1.5
 Continued

10. Capital Expenditure (Million US $)

FY2006 FY2007 % CHANGE

3,478 4,466 30%

 Business Mix (CY07)
Revenue % on total sales

E&P 8,426 13.1%

OSM 181 0.3%

RM&T 55,727 86.3%

IG 218 0.3%

TOTAL 64,552 100.0%

 DETAILS OF BUSINESS
SEGMENTS

UPSTREAM(EXPLORATION & PRODUCTION)
•Annual Net Sales (By Volume)
1. Liquid Hydrocarbon
FY In million barrels % Change
2004 56
2005 60 7%
2006 82 35%

2007 72 12%
Natural Gas
FY In billion cubic feet % Change

2004 366

2005 340 7%

2006 309 8%

2007 338 10%

Barrels of Oil Equivalent
FY In million of BOE % Change

2004 117

2005 117 0%

2006 134 15%

2007 128 4%
1. Liquid Hydrocarbon

FY In million barrels % Change

2004 560
2005 704 25%

2006 677 2%

2007 650 4%
2. Natural Gas

FY In billion cubic feet % Change

2004 3472

2005 3547 2%

2006 3510 1%

2007 3450 1%
3. Barrels of Oil Equivalent
FY In million of BOE % Change

2004 1139

2005 1295 15%

2006 1262 2%

2007 1225 3%
Factors that could affect levels
of sales
• Pricing, supply & demand for petroleum products.
• Amount of capital available for exploration &
development
• Regulatory constraints
• Timing of commencing production from new wells
• Drilling rigs availability
• Inability to obtain or delay in obtaining necessary
government & third party approvals & permits.
BALANCESHEET DEC ENDING
US$ MILLION 2004 2005 2006 2007
LIABILITIES
Net worth
Equity Capital 4,374 5,470 3,882 5,060
Reserve & Surplus 3,810 6,406 11,093 14,412
Accumulated other comprehensive loss (73) (171) (368) (249)
TOTAL 8,111 11,705 14,607 19,223
BORROWINGS
Long Term Debt 4,057 3,698 3,061 6,084
Deffered Income Tax 1,553 2,030 1,897 3,389
Payable to US Steels 5 6 7 5
Deffered credit & Liabilities 288 438 391 562
obligations 1,466 2,032 2,289 2,223
TOTAL 7,369 8,204 7,645 12,263
TOTALLIABILITIES 15,480 19,909 22,252 31,486
ASSETS
Gross Fixed Assets 13,027 16,314 18,171 26,288
less: Depreciation 1,217 1,303 1,518 1,613
Net Fixed Assets 11,810 15,011 16,653 24,675
Investments 1,546 1,864 1,539 2,630
Recivable From US Steel 587 532 498 485
Goodwill 252 1,307 1,398 2,899
Other Non current Asset 116 201 467 1,182
Intengible Assets 118 200 180 288
TOTAL 28,673 36,732 40,424 60,060
TOTAL CURRENT ASSETS 8,866 9,387 10,096 10,587
LESS:TOTAL CURRENT LIABILITIES 5,253 8,154 8,061 11,260
NET CURRENT ASSETS 3,613 1,233 2,035 (673)
TOTALASSETS 32,286 37,965 42,459 59,387
 Ratio Analysis -
1. Liquidity Ratios –
 Current Ratio = Current Assets / Current Liabilities

 Acid test ratio = Quick Assets / Current Liabilities

2. Efficiency Ratios –
 Asset Turnover ratio = Sales / Total Assets

 Inventory Turnover Ratio = COGS / Av. Inventory
 Continued
3. Profitability Ratios –
 Gross Profit Margin = G.P. / Sales * 100

 PAT Margin = PAT / Sales * 100

 Return on Investment = PAT / Capital employed.

4. Market Ratios –
 EPS = Profit after tax/Total no. of  equity shares issued.
 Continued
 Price earning ratio =  price of the share / Earning per 
share

5. Financial Leverage –
 Debt equity ratio = Total Liabilites / Shareholders 
Equity.

 Interest coverage ratio = EBIT / Interest expense.
 Additional factors to be
considered –
 Mergers and acquisitions

 News flash

 Conference call

 Presentations

 SEC filling 10K
 Reference
 finance.google.com
 hoovers.com
 yahoofinance.com
 bloomberg.com
 reuters.com
 marketwatch.com
 money control.com
 Companies own site