Since very little data has been given for our analyst to work with, we need to look at other areas where the company is involved.
Going by the data at hand we can say that the company has carefully diversified into various aspects of the oil and gas business. Their 30% business investment into futures and forex trading provides them with a cushion against fluctuations in oil prices.
From the given graph we observe a continuous decline in revenue largely due to declining oil prices and not due to fall in demand. this can only have an impact on the drilling aspect of the business which is only 15% of their business.
Also, Lily Refineries being a predominantly marketing firm must already have made considerable investments to establish the infrastructure needed for distribution and surface transportation which together makes up about 55% of their business, which means that any expenditure on these will only be in the form of maintenance costs. In the near future, they can also get into agreement with other smaller refineries to use lily refinery’s infrastructure, providing the company with another revenue stream.
