IBF (1).docx - Institute Of Business Management Submitted to Sabera Sulaiman Course Introduction to Business Finance Course Code FIN 201-F TOPIC THE

IBF (1).docx - Institute Of Business Management Submitted...

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Institute Of Business Management Submitted to: Sabera Sulaiman Course: Introduction to Business Finance Course Code: FIN 201-F TOPIC: THE PETROLEUM INDUSTRY OF PAKISTAN A COMPARATIVE ANALYSIS OF BYCO PETROLEUM WITH POTENTIAL COMPETITORS Prepared by:- Asmer Khan 15879 Ali Zain Wajih Abbas Naba Zehra Khushbakht Fahim
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BYCO PETROLEUM PRIVATE LIMITED Acknowledgement We owe our profound gratitude to Madam Sabera Sulaiman, to help us, guide us, and provide us with all the necessary information needed to complete this report. As the leader of this group I want to thank my group members for their continuous support, hard work, and efforts in gathering, analyzing, and compiling this report. The work division is as follows: Asmer Khan was assigned to work on Individual Analysis of PPL and Comparative Index Analysis of the three companies. Khushbakht was assigned to work on Individual Analysis of BYCO, Comparative Ratio Analysis of the three companies, and the overall compiling and formatting of the final report. Nabah was assigned to work on the Executive Summary, companies’ Introduction of all companies, and Individual Analysis of PSO for 2013. Ali zain was assigned to work on Individual Analysis of PSO for 2014 and Comparative Common Size Analysis of the three companies.
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Executive Summary The oil and gas sector of Pakistan is on the rise and working hard to fulfill the national demand. Oil and gas are the two of the key components of the energy mix contributing around 80% share to the 64 million TOE of energy requirement in the country. Industry is growing very quickly and the drilling activities in the country are going above the average. There were 76 well drilled in the last year and it was never ever seen in the past years to drilled so may wells in a single year. According to last Economic Survey 2013, Pakistan estimated that there are 27 million barrels of reserves available that are recoverable for the use and Pakistan’s consumption is 19.21 million tones. The average oil production was 66,032 barrels per day in 2013 and it was the growth of around 13% over the last year. There are total 7 oil Refineries, 6772 petrol stations are operating in Pakistan and 258 oil & gas discoveries and 803 wells drilled till now. The liquidity ratios of Pakistan oil industry is not much efficient as it should need to be. Current ratios give us the sense about the ability of a company to turn its product into cash. The current ratio of industry is decreasing with the passage of time which means the ability of industry to pay its short term liabilities is getting low as compare to past few years. Also the cash ratio of the industry is not much stronger as the industry has to pay high debt to its suppliers. It means that ratio of cash and marketable securities against current liabilities is very low but cash ratio is increasing with the passage of time and working hard to pay its liabilities. There are several reasons behind lowness of these ratios. The main reason is the high amount debt taken by industry from its
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  • Summer '19
  • Balance Sheet, Financial Ratio, Generally Accepted Accounting Principles, Byco

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