Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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Anadarko Petroleum Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
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Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Revenue Trends
- Sales revenues increased steadily from 2012 to 2014, rising from $13.3 billion to $16.4 billion. This upward trend was primarily driven by growth in oil sales, natural-gas sales, natural-gas liquids sales, and gathering, processing, and marketing sales. However, from 2015 onwards, sales revenues sharply declined, dropping to $9.5 billion in 2015 and $8.4 billion in 2016. The decline is most notable in oil and natural-gas sales, which saw substantial revenue reductions during this period.
- Cost of Sales and Gross Profit
- Costs associated with sales revenues rose gradually from 2012 to 2014, peaking at $3.3 billion in 2014, before slightly declining to $2.9 billion in 2016. Despite declines in sales revenues after 2014, the company managed to reduce cost of sales to some extent. Gross profit followed a similar pattern to sales revenues, increasing from $10.6 billion in 2012 to $13.1 billion in 2014, then falling sharply to $6.3 billion in 2015 and $5.5 billion in 2016.
- Operating Expenses and Impairments
- Exploration expenses displayed variability, initially declining from $1.9 billion in 2012 to $1.3 billion in 2013, rising again to $2.6 billion in 2015, then sharply dropping to $946 million in 2016. General and administrative expenses fluctuated moderately but remained between $1.1 billion and $1.4 billion over the five-year period. Depreciation, depletion, and amortization costs increased from $3.96 billion in 2012 to around $4.6 billion in 2015 before slightly reducing in 2016. Notably, impairments spiked dramatically in 2015, reaching $5.1 billion, likely impacting overall profitability significantly, before falling back to $227 million in 2016. Other operating expenses showed a negative amount only in 2012, followed by relatively minor negative amounts in later years.
- Operating Income and Net Income
- Operating income peaked in 2014 at $5.4 billion but turned negative in 2015 at a loss of $8.8 billion, partially due to large impairments and reduced revenues. Although the loss narrowed in 2016, operating income remained negative at $2.6 billion. Interest expense steadily increased from $742 million in 2012 to $890 million in 2016. Net income followed a downward trajectory after 2013, turning negative in 2014 (-$1.6 billion) and worsening sharply in 2015 (-$6.8 billion). In 2016, net losses continued at $2.8 billion. Income tax expenses varied, showing benefits in 2015 and 2016 which partially offset pre-tax losses during these years.
- Other Income and Loss Items
- Gains and losses on divestitures and other net incomes were volatile, with a significant gain of $2.1 billion in 2014 but losses in other years, especially in 2015 and 2016. Losses related to the Tronox-related contingent loss were substantial in 2014, contributing to the overall negative income. Gains and losses on derivatives were mixed and relatively small compared to other operating results. Other income and expenses showed large losses in 2013 and 2014, with some recovery in later years.
- Overall Financial Health
- The data indicates that the company experienced strong revenue and profit growth until 2014, followed by a sharp decline starting in 2015 attributable to decreased sales, significant impairments, and increased operational challenges. The large impairment charges and exploration costs in 2015 had a pronounced negative effect on operating and net income. Interest and general administrative expenses remained relatively stable, but the overall profitability was heavily influenced by external market conditions reflected in reduced oil and gas sales revenues as well as volatile other income and loss items. The years 2015 and 2016 mark a period of financial stress, with negative profitability despite some cost control in certain areas.