Analysis of Geographic Areas
Hess Corp. operates in 4 regions: United States; Guyana; Malaysia and JDA; and Other.
Area Asset Turnover
Hess Corp., asset turnover by geographic area
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 0.73 | 0.55 | 0.35 | 0.41 | — |
| Guyana | 0.65 | 0.25 | 0.17 | 0.00 | — |
| Malaysia and JDA | 0.82 | 0.71 | 0.48 | 0.40 | — |
| Other | 13.07 | 1.71 | 0.37 | 0.56 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- United States
- The asset turnover ratio for the United States shows a generally increasing trend from 2019 to 2022. Starting at 0.41 in 2019, the ratio slightly declined to 0.35 in 2020 but then rose steadily to 0.55 in 2021 and further to 0.73 in 2022. This suggests improving efficiency in asset utilization in this region over the analyzed period.
- Guyana
- Data for Guyana begins in 2020 with a ratio of 0.17, which subsequently increases to 0.25 in 2021 and experiences a more significant rise to 0.65 in 2022. This upward trend indicates a growing effectiveness in asset turnover, becoming more pronounced in the recent year.
- Malaysia and JDA
- The asset turnover ratio for Malaysia and JDA demonstrates consistent growth from 2019 through 2022. Starting at 0.40 in 2019, it increased steadily each year to 0.48 in 2020, 0.71 in 2021, and then 0.82 in 2022. This continuous improvement reflects enhanced asset utilization in these regions.
- Other
- The "Other" category exhibits a highly volatile pattern. Beginning at 0.56 in 2019, the ratio dropped to 0.37 in 2020 but then surged dramatically to 1.71 in 2021 and skyrocketed to 13.07 in 2022. This sharp increase in the final year suggests an exceptional and possibly anomalous improvement in asset turnover, which may merit further investigation to understand the underlying causes.
Area Asset Turnover: United States
Hess Corp.; United States; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and other operating revenues | 7,214) | 5,378) | 3,604) | 5,043) | —) |
| Property, plant and equipment, net | 9,937) | 9,721) | 10,384) | 12,182) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.73 | 0.55 | 0.35 | 0.41 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 7,214 ÷ 9,937 = 0.73
The data for the United States geographic area shows notable trends in sales and asset utilization over the given periods from 2019 to 2022.
- Sales and Other Operating Revenues
- Sales figures exhibit a fluctuating yet overall upward trajectory. After a decrease from $5,043 million in 2019 to $3,604 million in 2020, revenues recovered sharply in 2021 to $5,378 million and further increased to $7,214 million in 2022. This pattern suggests a significant impact on revenues likely related to external conditions in 2020, followed by strong recovery and growth.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows a declining trend from $12,182 million in 2019 to $9,937 million in 2022. The decrease is relatively steady over the years, indicating a possible reduction in fixed asset base or increased depreciation that is not offset by new capital expenditures.
- Area Asset Turnover Ratio
- Asset turnover, which measures how efficiently assets generate revenue, declined from 0.41 in 2019 to 0.35 in 2020, paralleling the drop in revenues. However, this ratio improved significantly to 0.55 in 2021 and 0.73 in 2022. The rising turnover ratio despite a shrinking asset base indicates enhanced efficiency in using assets to drive revenue growth in the later periods.
Overall, the data reflect a recovery phase post-2020 with increasing revenues and improved asset usage efficiency, while the fixed asset base contracted steadily. This combination may suggest a strategic focus on optimizing resources and capital use in the United States region.
Area Asset Turnover: Guyana
Hess Corp.; Guyana; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and other operating revenues | 2,636) | 754) | 350) | —) | —) |
| Property, plant and equipment, net | 4,042) | 3,064) | 2,114) | 1,507) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.65 | 0.25 | 0.17 | 0.00 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 2,636 ÷ 4,042 = 0.65
- Sales and Other Operating Revenues
- The sales and other operating revenues data start in 2021 with $350 million, followed by a substantial increase to $754 million in 2022, and then an even more pronounced jump to $2,636 million in 2023. This shows a strong upward trend in revenue generation from this geographic area over the observed period.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment exhibits a consistent and significant increase from $1,507 million in 2019 to $2,114 million in 2020, then further to $3,064 million in 2021, and up to $4,042 million in 2022. This progressive investment growth suggests ongoing capital expenditures and asset development in the area, likely supporting the expansion in operations and revenue.
- Area Asset Turnover
- The area asset turnover ratio, indicating the efficiency of asset use to generate sales, shows a rising trend from 0.17 in 2020 to 0.25 in 2021, and a substantial increase to 0.65 in 2022. This increase reflects improved operational efficiency in utilizing assets to generate higher revenue, aligning with the substantial growth in sales observed.
- Overall Analysis
- Over the observed period, the data reveal significant growth in both asset base and revenues from the geographic area, accompanied by considerable improvements in asset turnover efficiency. The increased investments in property, plant, and equipment have been effectively leveraged to generate higher sales, particularly from 2021 onwards. This indicates a successful scaling of operations, enhanced productivity, and a strengthening financial performance in the region.
Area Asset Turnover: Malaysia and JDA
Hess Corp.; Malaysia and JDA; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and other operating revenues | 873) | 738) | 511) | 762) | —) |
| Property, plant and equipment, net | 1,065) | 1,035) | 1,067) | 1,890) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.82 | 0.71 | 0.48 | 0.40 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 873 ÷ 1,065 = 0.82
- Sales and Other Operating Revenues
- Sales and other operating revenues exhibited a fluctuating but overall upward trend from 2019 to 2022. After recording 762 million USD in 2019, revenues declined to 511 million USD in 2020, likely reflecting temporary adverse conditions. This was followed by a recovery, with revenues increasing to 738 million USD in 2021 and further to 873 million USD in 2022, marking the highest value in the observed period.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment showed a significant decline from 1890 million USD in 2019 to 1067 million USD in 2020. This value stabilized afterward, with a slight decrease to 1035 million USD in 2021 and a minor increase to 1065 million USD in 2022. The sharp drop in 2020 suggests a major asset impairment, disposal, or revaluation event during that year, while the subsequent periods indicate relatively steady asset levels.
- Area Asset Turnover
- The area asset turnover ratio demonstrated a consistent and notable improvement throughout the period. Starting at 0.4 in 2019, the ratio increased to 0.48 in 2020, 0.71 in 2021, and reached 0.82 in 2022. This progression indicates improved efficiency in utilizing assets to generate revenue, aligning with the recovery in sales and stabilization of asset values after 2020.
Area Asset Turnover: Other
Hess Corp.; Other; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and other operating revenues | 601) | 603) | 202) | 690) | —) |
| Property, plant and equipment, net | 46) | 352) | 539) | 1,223) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 13.07 | 1.71 | 0.37 | 0.56 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 601 ÷ 46 = 13.07
- Sales and other operating revenues
- The sales and operating revenues experienced significant fluctuations over the observed period. Starting at 690 million US dollars in 2019, there was a sharp decline to 202 million in 2020. This was followed by a substantial recovery to 603 million in 2021, stabilizing slightly to 601 million in 2022, indicating a strong rebound post-2020.
- Property, plant and equipment, net
- Net property, plant, and equipment values demonstrated a consistent downward trend throughout the years. After recording 1,223 million US dollars in 2019, the value decreased markedly to 539 million in 2020, continued to fall to 352 million in 2021, and further declined to 46 million by 2022. This steady reduction suggests ongoing asset disposals or impairments.
- Area asset turnover
- The asset turnover ratio exhibited pronounced variability. Starting at 0.56 in 2019, it decreased to 0.37 in 2020, corresponding with the decline in revenues and reduction in asset base. In 2021, the ratio sharply increased to 1.71, and surged dramatically to 13.07 in 2022. This substantial increase indicates a significant improvement in the efficiency of asset utilization in generating sales within the geographic area.
Sales and other operating revenues
Hess Corp., sales and other operating revenues by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 7,214) | 5,378) | 3,604) | 5,043) | —) |
| Guyana | 2,636) | 754) | 350) | —) | —) |
| Malaysia and JDA | 873) | 738) | 511) | 762) | —) |
| Other | 601) | 603) | 202) | 690) | —) |
| Total | 11,324) | 7,473) | 4,667) | 6,495) | —) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The analysis of the annual geographic area sales and other operating revenues reveals several notable trends and shifts in regional performance over the observed periods.
- United States
- The revenue from the United States shows significant fluctuation but an overall upward trend. Starting at 5,043 million US dollars in 2019, it declined by approximately 28.6% to 3,604 million in 2020. However, it rebounded strongly in subsequent years, reaching 5,378 million in 2021 and further increasing to 7,214 million in 2022. This indicates a robust recovery and growth trajectory in the U.S. market after the decline experienced in 2020.
- Guyana
- Sales in Guyana began to be reported in 2020, initially recording 350 million US dollars. This figure more than doubled to 754 million in 2021, demonstrating rapid expansion. The upward momentum accelerated sharply in 2022, with revenues surging to 2,636 million, representing a substantial increase that signifies growing strategic importance and success in this region.
- Malaysia and JDA
- This geographic segment exhibits a comparatively moderate and stable performance. Revenues declined from 762 million in 2019 to 511 million in 2020, followed by recovery to 738 million in 2021 and a modest increase to 873 million in 2022. The fluctuations are less pronounced, indicating steadier operations relative to other regions.
- Other
- Revenues classified under Other show considerable volatility with a general downward trend from 690 million in 2019 to 202 million in 2020. There was a recovery to 603 million in 2021, which then plateaued slightly at 601 million in 2022. This segment appears less stable, with notable variability and no clear sustained growth.
- Total
- Total revenues display a similar pattern to that in the United States segment, reflecting its significant contribution to overall results. Total revenues declined from 6,495 million in 2019 to 4,667 million in 2020, followed by a strong recovery to 7,473 million in 2021 and a marked increase to 11,324 million in 2022. The recovery and growth from 2020 onwards are particularly strong, largely driven by growth in the United States and Guyana segments.
Overall, the data highlight a challenging year in 2020 across most regions, likely reflecting broader market or operational disruptions. Subsequent years show considerable recovery and growth, with the Guyana region emerging as a key area of expansion and the United States showing strong revenue resurgence. Malaysia and JDA maintain steady contributions, whereas the Other category indicates more inconsistent results. The total revenue trend suggests successful strategic realignment or market improvement post-2020.
Property, plant and equipment, net
Hess Corp., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 9,937) | 9,721) | 10,384) | 12,182) | —) |
| Guyana | 4,042) | 3,064) | 2,114) | 1,507) | —) |
| Malaysia and JDA | 1,065) | 1,035) | 1,067) | 1,890) | —) |
| Other | 46) | 352) | 539) | 1,223) | —) |
| Corporate, Interest and other | 8) | 10) | 11) | 12) | —) |
| Total | 15,098) | 14,182) | 14,115) | 16,814) | —) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- United States
- The net property, plant, and equipment value shows a declining trend from 12,182 million US dollars in 2019 to 9,721 million in 2021. This figure slightly increases to 9,937 million in 2022, indicating a modest recovery or stabilization after the initial decline.
- Guyana
- The value in Guyana steadily increases over the period, rising from 1,507 million US dollars in 2019 to 4,042 million in 2022. This consistent growth suggests increased investment or asset accumulation in this geographic area.
- Malaysia and JDA
- This region experiences a significant decrease from 1,890 million US dollars in 2019 to 1,067 million in 2020 and remains relatively stable afterward, with values around 1,030 to 1,065 million by 2022. This pattern indicates a contraction followed by a plateau in net property, plant, and equipment holdings.
- Other
- The values in the 'Other' category show a sharp decline, falling from 1,223 million US dollars in 2019 to just 46 million in 2022. This substantial reduction points to considerable asset disposals or write-offs in these unspecified regions.
- Corporate, Interest and other
- There is a gradual decrease in this segment from 12 million US dollars in 2019 down to 8 million in 2022, reflecting either reduced asset holdings or reclassification of corporate-level assets over time.
- Total
- The total net property, plant, and equipment decreased from 16,814 million US dollars in 2019 to 14,115 million in 2020, remaining relatively stable in 2021, then increasing to 15,098 million in 2022. This trend demonstrates an initial contraction followed by a recovery phase in the overall asset base.