FINAL-PSO-REPORT - 2015 Pakistan State Oil ANALYSIS REPORT HAFSA UMAIR SYEDA KHUSHBAKHT FARRUKH MUHAMMAD SAUD SHAKEEL INTRODUCTION TO BUSINESS FINANCE |

FINAL-PSO-REPORT - 2015 Pakistan State Oil ANALYSIS REPORT...

This preview shows page 1 - 4 out of 17 pages.

Pakistan State Oil 2015 ANALYSIS REPORT INTRODUCTION TO BUSINESS FINANCE | INSTITUTE OF BUSINESS ADMINISTRATION HAFSA UMAIR, SYEDA KHUSHBAKHT FARRUKH, MUHAMMAD SAUD SHAKEEL
Image of page 1
1 PAKITSAN STATE OIL HAFSA UMAIR, SYEDA KHUSHBAKHT FARRUKH, MUHAMMAD SAUD SHAKEEL Table of Contents Introduction ............................................................................................................................... 2 Profitability Ratios .................................................................................................................. 2 Debt Management Ratios ...................................................................................................... 3 Liquidity Ratios: .......................................................................................................................... 4 Market Ratios ............................................................................................................................. 5 Activity Turnover Ratios ............................................................................................................. 6 COMMON SIZE STATEMENT ANALYSIS ...................................................................................... 8 INCOME STATEMENT ............................................................................................................. 8 BALANCE SHEET .................................................................................................................... 10 INDUSTRIAL ANALYSIS .............................................................................................................. 13 BALANCE SHEET COMPARISON: ........................................................................................... 13 INCOME STATEMENT COMPARISON: .................................................................................. 13 RATIO COMPARISON ............................................................................................................ 13 Competitor Analysis ................................................................................................................. 13 CONCLUSION ............................................................................................................................ 15 REFERENCES ............................................................................................................................. 15 APPENDIX ................................................................................................................................. 16 .................................................................................................................................................. 16 .................................................................................................................................................. 16 .................................................................................................................................................. 16
Image of page 2
2 PAKITSAN STATE OIL HAFSA UMAIR, SYEDA KHUSHBAKHT FARRUKH, MUHAMMAD SAUD SHAKEEL Pakistan State Oil Analysis Report Introduction Pakistan State Oil is a public company that was formed in the year 1976 with a series of mergers. The government of Pakistan merged Pakistan Nation Oil (PNO) Company and Dawood Petroleum Limited (DPL) and formed the Premier Oil Company Limited (POCL) in 1974. Sometime later, the Petroleum Storage Development Corporation (PSDC) was formed which was then renamed as State Oil Company Limited (SOCL). Finally in 1976, the merger of PSDC and SOCL brought about the creation of Pakistan State Oil. PSO is listed on the Karachi Stock Exchange as well as on all stock exchanges in Pakistan. It was listed on the 23 rd of October 1997 on the KSE, PSO belongs to the Oil and Gas sector. The core activities of PSO are procurement (obtaining), storage and the marketing of petroleum and its other products. Its product portfolio includes Motor Gasoline (MOGAS), high speed diesel oil, LPG, Kerosene Oil, Jet Fuel, CNG, Petrochemicals and Lubricants. The total market share of PSO, in the year 2014-15 stands at 56.8%, however, in 2013-2014 PSO had a market share of 62% in the Oil Marketing Companies Sector. During the years 2013-2015, PSO lost about 8% of its market share to other OMCs. The total shares outstanding as of 30 th June 2014 were 271,685,938. The number of free float shares as of 30 th June 2014 were 126,187,096. RATIO ANALYSIS Profitability Ratios Pakistan State Oil witnessed its greatest ever annual sales in FY-2014. A whopping revenue of 1.4 trillion was recorded. In the same year, the Company also recognized significant cost efficiencies, with distribution and marketing expenses increasing by merely a 3% in contrast to the 14% average increase witnessed over the last three years and against an inflation of 8.5%. The Gross Profit margin has remained stable throughout the course of the five years. While, the net profit margin has observed a substantial increase in FY 2014 due to a 208% increase in interest income received from IPP’s . However, an abnormal decrease was observed in FY-2012 owing to increase in operating expenses as a result of exchange losses on account of the value of the rupee hitting a historic low. This one time decline was offset in the following years with the return on shareholder’s equity and return on total assets has improving considerably in FY-2013 and FY-2014 owing to an 0 10 20 30 40 2014 2013 2012 2011 2010 PROFITABILITY RATIOS
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 17 pages?

  • Fall '14
  • Jalal Khan
  • Management, Financial Ratio, ........., Generally Accepted Accounting Principles, Pakistan State Oil, MUHAMMAD SAUD SHAKEEL

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes