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? ANALYSIS OF OIL AND GAS ADVERTISING SECTOR- AN OVERVEW OF ITS GROWTH OVER THE LAST FIVE YEARS (2001 – 2005) AUTHOR: Akhlaq Ahmad Join No . 111031-004 Cell not any: 03215008455 BBA-6 (Morning) MANAGER: Mr. Musbashir Sadiq Bahria Institute of Management , Computer Savoir, Bahria University or college Shangrila Road, Sector E-8, Islamabad ABSTRACT Pakistan’s economy is having significant strength changes as 1999-2000.
The actual GDP growth is speeding up over the last five years. Above the next five years, 7-8 percent growth is geared to be continual, which will demand a huge rise in the energy use.
The energy sector in Pakistan comprises of petrol, natural gas, electricity (hydro and nuclear) and coal. The oil and gas sector has a lots of potential in Pakistan. Pakistan is grouped as low concern by overseas investors because of the unstable economical and personal situation. However , efforts are being made by the Govt to promote investment in the gas and oil sector, simply by various incentives such as liberal granting of exploration permit, restructuring and reform of the oil and gas areas, deregulation of prices, and privatization of selected assets.
The reform offers enhanced openness, making decision makers conscious of the various The purpose of this thesis is to examine whether the Gas and oil sector in Pakistan has really progressed and whether you will discover better possibilities for expenditure and progress in this sector now than there were in past times. For the purpose of determining the trend of growth inside the Oil and Gas Sector, four Oil and Gas Marketing Firms (O, GMC) were selected and their financial data analyzed over a period of five years (2001 – 2005).
Financial data relevant to the sample companies was obtained from published accounts of the companies, in their annual reviews. This data was condensed and summed up for the four companies and provided in tables and then intended for analysis. The results were held to be representative of the entire Petrol Marketing Sector and appear to show a marked tendency of progress in the monetary indicators expose that there has been a designated improvement in the growth of this industry. VERIFICATION First of all I actually am greatly thankful to ALLAH LUMINOUS, who offered me strength , power to full this task successfully , efficiently.
I are also very much thankful to my parents whom gave me the standard knowledge of tips on how to read , write, who have also prayed for me each and every time, especially in the hour of need , difficulty. Thanks to my own most renowned Supervisor Mister. Mubashir Sadik for providing me guidelines for each , every aspect. Thanks to Mr. Abdul Ahad Maud and Mister. Faisal Subhan who were incredibly cooperative and considerate throughout the whole period of data collection. I are also very happy to all those who helped me , gave me up dated information or any other information with regards to this examination while completing this task. Many thanks in concern.
DADICATION TO MY LOVING PARENTS STAND OF MATERIAL ABSTRACTi ACKNOWLEDGMENTiii DADICATIONiv DESK OF CONTENTSv LIST OF TABLESvi LIST OF FIGURESix CHAPTER eleven INTRODUCTION1 Broad Problem Area/Background1 Rationale5 Issue Statement6 Aims of the study7 Research Questions8 Limitations9 CHAPTER 210 MATERIALS REVIEW10 SECTION 315 METHOD15 Procedure17 CHAPTER 421 RESULTS AND DISCUSSION21 CHAPTER 566 CONCLUSION AND RECOMMENDATION66 Conclusion66 Recommendations 68 GLOSSARY 69 REFERENCES73 LIST OF TABLES Stand 4. 1: Pakistan Express Oil Company Limited Harmony Sheets (2001-2005)21 Table four.: Pakistan State Oil Company Limited Cash flow Statements (2001-2005)22 Table four. 3: Pakistan State Petrol Company Limited Vertical Prevalent Size of Stability Sheets (2001-2005)23 Table some. 4: Pakistan State Essential oil Company Limited Vertical Common Size of Income statement (2001-2005)24 Table 4. 5: Pakistan State Essential oil Company Limited Horizontal Prevalent Size of Equilibrium Sheets (2001-2005)25 Table some. 6: Pakistan State Olive oil Company Limited Horizontal Common Size of Cash flow statement (2001-2005)27 Table some. 7: Covering Pakistan Limited Balance Linens (2001-2005)28 Stand 4.: Layer Pakistan Limited Income Claims (2001-2005)29 Table 4. being unfaithful: Shell Pakistan Limited Straight Common Size of Balance Linens (2001-2005)30 Table 4. 12: Shell Pakistan Limited Straight Common Size of Income Claims (2001-2005)31 Stand 4. 14: Shell Pakistan Limited Lateral Common Scale Balance Linens (2001-2005)32 Stand 4. doze: Shell Pakistan Limited Lateral Common Size of Income Claims (2001-2005)34 Stand 4. 13: Sui Upper Gas Pipelines Limited Equilibrium Sheets (2001-2005)35 Table 4. 14: Sui Northern Gas Pipelines Limited Income Assertions (2001-2005)36 Stand 4. a few: Sui North Gas Sewerlines Limited Vertical Common Scale Balance Sheets (2001-2005)37 Stand 4. 16: Sui Northern Gas Sewerlines Limited Up and down Common Size of Income Assertions (2001-2005)38 Desk 4. 17: Sui Upper Gas Pipelines Limited Horizontally Common Scale Balance Bedding (2001-2005)39 Stand 4. 18: Sui North Gas Pipelines Limited Horizontal Common Scale Income Assertions (2001-2005)40 Table 4. nineteen: Sui The southern part of Gas Business Balance Bedding (2001-2005)41 Stand 4. 20: Sui The southern part of Gas Business Income Claims (2001-2005)42 Table 4. one particular: Sui Southern Gas Organization Vertical Common Size of Balance Sheets (2001-2005)43 Table 4. 22: Sui Southern Gas Company Vertical Common Size of Income Transactions (2001-2005)44 Stand 4. 3: Sui Southern Gas Firm Horizontal Prevalent Size of Equilibrium Sheets (2001-2005)45 Table 4. 24: Sui Southern Gas Company Horizontal Common Size of Income Claims (2001-2005)46 Table 4. twenty-five: Oil and Gas Advertising Sector Consolidated Balance Linens (PSO, Cover, SNGPL, SSGC) (2001-2005)47 Stand 4. 26: Oil and Gas Marketing Sector Consolidated Income Affirmation (PSO, Covering, SNGPL, SSGC) (2001-2005)48 Desk 4. several: Oil and Gas Marketing Sector Up and down Common Scale Balance Sheet (PSO, Shell, SNGPL, SSGC) (2001-2005)49 Table 4. 28: Oil and Gas Marketing Sector Vertical Common Size of Profits Statement (PSO, Shell, SNGPL, SSGC) (2001-2005)51 Table 5. 29: Gas and oil Marketing Sector Horizontal Common Size of Consolidated Balance Sheet (PSO, Shell, SNGPL, SSGC) (2001-2005)52 Table 5. 30: Coal and oil Marketing Sector Horizontal Common Size of Consolidated Income Declaration (PSO, Layer, SNGPL, SSGC) (2001-2005)53 Stand 4. thirty-one: Important statistics to be found in the calculating the ratios54 Table four. 2: Ratios for computing the Liquidity of the sector 55 Table 4. 33: Ratios pertaining to measuring the Long Term Debt Paying out Ability57 Table 4. 34: Ratios pertaining to measuring earnings of the sector59 Table some. 35: Ratios of the measurement of the their market value of the sector63 LIST OF CHARACTERS Figure four.
Financial growth is vital to this situation and for financial growth we require energy. Pakistan’s economy is usually undergoing significant structural adjustments since 1999-2000. The real GDP growth is accelerating during the last five years. Over the up coming five years, 7-8 percent growth is usually targeted to be sustained, which will demand a big rise in the use. The energy sector in Pakistan consists of oil, natural gas, power (hydro and nuclear) and coal. The total main energy products measured with regards to oil comparative (toe) was standing at 40. million loads in 2003-04. Oil and gas be the cause of almost 80% of the strength sector of Pakistan with oil and gas getting 29. 9 percent and 49. several percent correspondingly. In order to measure the growth of the vitality sector the very best proxy may be to evaluate the performance of the oil promoting companies. Mainly because these are the firms which are not simply selling the oil based goods which fulfill the major requires of the strength in Pakistan but also these companies will be dealing in the recently manufactured popular Pressurized Natural Gas.
Since this Gas and oil sector symbolizes more than 80% of the energy consumed in Pakistan so the companies that are dealing with the marketing of those fuels should be assessed because of their financial functionality and leads to the past few years. If these companies happen to be showing progress we might imagine the energy sector is growing and the economy is on the right path. The first gas field was discovered in at Sui in 1952 and supplies the basis to get Pakistan’s considerable gas network. Pakistan imports crude oil (it only makes 17% to 20% of what it needs), however is definitely self sufficient in natural gas.
With the companies that are to be researched in the present study, Pakistan State Oil Company Limited (PSOCL) and Shell Pakistan are the primary planks in the oil industry. Sui Upper Gas Sewerlines Limited (SNGPL) and Sui Southern Gas Company (SSGC), distributes main portion of the natural gas. Pakistan declared 1997-98 an “Oil and Gas Year”. Because of offering bonuses to potential investors, which include foreign corporations, some $2. 5 billion of investment was captivated. Oil and Gas Intake Figures? Essential oil Consumption (In tones): 1999-00 2000-01 2001-02 2002-03 2003-04 17, 768, 000 18, 648, 1000 16, 950, 000 six, 542, 500 13, 421, 000 Gas Consumption 2003 ( In mmcft): 1999-00 2000-01 2001-02 2002-03 2003-04 712, 001 768, 068 872, 604 872, 264 1, 051, 418 Intake of gas and oil has been quite steady through the entire 1990s together with the gas consumption increasing at a rate of 5. 9 percent while the petrol consumption increasing at a slightly reduced rate of 2. 5 percent. Until 1999, the government securely controlled the oil and gas industrial sectors of Pakistan. No decision could be produced without referring to the higher specialists, and when decisions were made, these were often depending on political rather than economic factors.
Since early on 2000, an ambitious pro-market reform system is being implemented, and gradually, the straightjacket under that the industry accustomed to operate is being dismantled. As a result, the sector has changed considerably over the last five years, and Pakistan today leads Southern region Asia in sector reform (Economic Review of Pakistan, 2004-05). The government actions have got focused on promoting private investments in the upstream, deregulating almost all of the market intended for petroleum goods, establishing a regulatory organization for the gas sector, and introducing market-related price caps pertaining to petroleum items.
The government’s long term objective is to create a competitive, efficiently-run, financially clean, and a largely privatized oil and gas sector providing items to a significant share of population. It is necessary to note a structural move is occurring since 2000-01. The last five years have experienced a positive trend towards better gas intake and a poor trend in the petroleum items consumption. Substantive progress continues to be made in the restructuring and reform from the oil and gas areas, deregulation of costs, and privatization of selected assets.
The reform provides enhanced openness, making decision makers aware of the various aspects of the business. Explanation Oil and Gas is an important sector in Pakistan economic climate and this largely affects the GROSS DOMESTIC PRODUCT of Pakistan, therefore there exists a great focus on exploration and marketing. The intake of Oil was 16. 45 million soucis in 2002-3 and usage of gas was 872, 264 , 000, 000 cubic feet. The acceleration in growth of strength consumption is usually not surprising when ever seen against a 15. 4 percent growth in large scale production and a great 8. 5 percent growth in real GROSS DOMESTIC PRODUCT. Higher consumption of energy just reflects the rising of economic activity in a nation. Oil and natural gas are an integral portion of the everyday life. They not only make the economic climate move, that they heat and cool our homes and give electricity. A large number of products are manufactured from oil and gas, including plastics, life-saving medications, fine art silk, makeup products, and many other items you may employ daily. Possibly from Tactical point and defense view point Pakistan is dependent in oil and gas. Issue Statement
Oil and gas sector of Pakistan has changed dramatically during the last five years and Pakistan now qualified prospects South Asia in sector reform. The endeavors designed to increase the gas and oil supplies need to be analyzed and companies urged. With this premise at heart four, Gas and oil marketing businesses have been picked to analyze their very own financial efficiency that would also indicate their very own success. Goals of the analyze The objective of research study is to examine the growth and development of the Oil and Gas Promoting Sector in Pakistan.
Presently according to the Plank of Expenditure of Pakistan there are twenty six (local and international) companies operating in upstream, 7 downstream companies, and 4 refineries. The focus of this analysis can be on the improvement of downstream companies which have been based in Pakistan. Four leading downstream businesses have been selected and their economical performance studied for a amount of five years from 2001 to 2006 to see if these companies are financially more powerful and what their level of growth is and also to determine causes of the growth. Exploration Questions 1 )
What is the value of Oil and Gas sector in Pakistan economic system? 2 . Precisely what is the growth scenario of Coal and oil Marketing businesses in Pakistan? 3. Precisely what is the financial performance from the selected Oil and Gas marketing corporations during the exploration period (2001-2005)? 4. What conclusions can be drawn about the industry based on the financial overall performance of the picked companies? Restrictions Limitations: This kind of research study features certain limits that are not possible for the investigator to defeat at this level. The general level of inflation will not be adjusted to get.
Overall prices of oil have increased due to unavoidable natural trend like battle in Iraq and Hurricane Katrina. Earnings of the essential oil marketing companies could be due to increase in rates of petroleum and it might not be the true measure of their very own financial overall performance. Some second data had not been easily available and was extremely tough to obtain. As the research operate was given towards the researcher during the semester and so the time constraint played it is role. Inspite of time restriction, the investigator has executed a comprehensive research.
The limited experience in the research discipline is also a matter of consideration. This is the 1st study that goes to researcher’s credit. Therefore, the specialist does not own any experience. CHAPTER two LITERATURE ASSESSMENT The organization itself and outside providers of capital- lenders and traders –all embark on financial affirmation analysis. The sort of analysis may differ according to the particular interests in the party involved. Trade lenders (suppliers’ payable money pertaining to goods and services) will be primarily interested in the liquidity of a organization.
Their says are temporary, and the capacity to pay these kinds of claims quickly is best judged by an analysis of firm’s liquidity. The says of bond bondholders, however are long lasting. Accordingly, bondholders are more interested in the amount flow ability of the company to services debt on the long time frame. They may examine this capacity by analyzing the capital structure of the company, the major sources and uses and uses of funds, the business profitability as time passes, and projections of foreseeable future profitability after some time, and predictions of future profitability.
The purpose of financial assertion analysis is usually to examine previous and current financial data so that a company’s efficiency and budget can be examined and long term risks and potential could be estimated. Financial statement analysis can yield valuable details about trends and relationships, the caliber of a company’s earnings, plus the strengths and weaknesses of its budget (Woelfel, 1989). Investors within a company’s common stock are principally worried about present and expected foreseeable future earnings along with with the steadiness of these income about a pattern line.
Because of this, investors usually focus on inspecting profitability. They might also be focused on the business financial condition insofar as it affects the ability with the firm to pay dividends and steer clear of bankruptcy. In house, management as well employs economic analysis for the purpose of internal control and to better provide what capital suppliers seek economic condition and performance from the firm. From an indoor control stand point, supervision needs to take on financial examination in order to strategy and control effectively.
To plan for the near future, the financial manager must assess the business’s present financial position and examines opportunities in relation to this current position. Regarding internal control, the financial manager is specially concerned with the return on investment offered by various assets of the firm and in the efficiency of asset management. Finally, to bargain efficiently for outside the house funds, the financial administrator needs to be mindful to all aspects of financial evaluation that outside suppliers of capital use in evaluating the firm (Horne , Wachowicz, 2001).
Economic analysis of any company ought to include an examination of the economic statements from the company, including notes towards the financial statements, and the auditor’s report. The auditor’s statement will condition whether the monetary statements have been completely audited in accordance with generally recognized auditing requirements. The report also implies whether the assertions fairly present the company’s budget, results of operations, and changes in financial position in accordance with generally accepted accounting principles. Remarks to the economic statements in many cases are more meaningful than the data found within bodily the statements.
The records explain the accounting policies of the company and usually give detailed answers of how those policies were applied along with promoting details. Experts often review the monetary statements of just one company to companies inside the same sector and with the sector in which the organization operates as well as with preceding year claims of the company being assessed (Foster, 1999). Comparative monetary statements give analysts with significant info on trends and relationships above two or more years. Comparative claims are more significant for assessing a company than are single-year statements.
The analysis of financial data utilizes various techniques to emphasize acceptable and relative importance of the information presented also to evaluate the placement of the organization. These techniques include ratio analysis, prevalent size evaluation, study of difference in components of financial statements between industries, report on descriptive material, and side by side comparisons of effect with other types of data. The data derived from these types of analyses ought to be blended to determine overall position. No one type of analysis supports overall conclusions or will serve all types of users.
Financial assertion analysis is known as a judgmental method. One of the primary goals is identification of significant changes (turning points) in trends, quantities and interactions and investigation of the factors underlying those changes. Frequently , a level may signal an early caution of a significant shift down the road success or failure with the business. The judgment process can be increased by knowledge and by the utilization of analytical tools. The components of financial statements, exclusively the balance bed sheet and the profits statements, will vary by kind of industry (Gibson, 1998).
Financial systems , most economies , run on strength. Energy is required to produce food and produce goods, electricity machines and appliances, transfer raw materials and finished goods, and provide warmth and light. The greater energy accessible to a contemporary society, the better its potential customers for continual growth, when energy products dwindle, economies grind into a halt as well as the affected populations suffer (Klare, 2005). As World War II, economic growth around the globe has been motivated largely simply by abundant materials of hydrocarbons , that is, by petroleum and gas.
Since 1950, worldwide oil consumption has exploded eightfold, coming from approximately 15 to 70 million barrels per day, gas consumption, which began via a smaller basic, has grown much more dramatically. Oil and gas will take into account 65% of world strength in 2025, a larger share than presently, and because no other source of power is currently offered to replace them, the future wellness of the global economy rests on our capability to produce and consume increasingly more of these hydrocarbons (U. H Department of Energy, 2004).
Petroleum refers to crude oil and gas or simply gas and oil, found in petroleum reservoirs generally thousands of ft below the area. Exploratory wells are drilled to discover petroleum wells, although development bore holes are drilled to produce a area of previously learned oil and gas. Estimated volumes of recoverable gas within the reservoir are called oil and gas reserves (Brock, Jennings , Feiten, 1990). The gas and oil sector or maybe the petroleum sector has the next four key segments: 1 ) Exploration and Production l E, P where gas and oil companies explore for underground reservoirs, and produce the discovered oil and gas employing drilled bore holes. This thesis focuses on this sector in the oil and gas market. 2 . Hydrocarbon processing including oil refineries and gas processing crops. 3. Transportation, Distribution and Storage by which petroleum is moved from the producing very well areas to crude oil refineries and gas processing vegetation. Oil can be moved by pipeline, pick up truck, barge or perhaps tanker and Natural gas is moved simply by pipeline. 4. Retail/Marketing which in turn ultimately marketplaces in various techniques the processed products.
CHAPTER 3 TECHNIQUE Sample Pertaining to the test selection of several marketing firms, out of the populace of 7 businesses listed in the KSE, conditions used had been: 1 . Talk about Capital from the company installment payments on your Sales Income 3. Circulation data of the companies Based upon these criteria the four companies chosen that are within Pakistan were the following: Pakistan State Petrol Company Limited (PSOCL) Pakistan State Essential oil Company Limited (PSOCL) may be the market leader in Pakistan having 73% of the discuss of Dark Oil Marketplace and about 59% from the share of White Petrol market.
It truly is engaged in the import, storage, distribution and marketing of various petroleum products including Energy oil, HSD, Jet Petrol, petro-chemicals, LPG and CNG. Shell Pakistan Limited (SPL) The Covering brand name likes a 100-year history from this part of the universe, dating back to 1899. Layer Pakistan have been taking a eager interest in growing recently which will shows the confidence inside the economic expansion and improvement in the coal and oil sector. Shell is at present controlling around 30% talk about of the white-colored oil goods presently and through the last monetary year the administrative centre Expenditure amounted to Rs 1 . billion. Sui Northern Gas Sewerlines Limited (SNGPL) Sui Upper Gas Sewerlines Limited (SNGPL, is the major integrated gas company offering more than a couple of million buyers in North Central Pakistan through an extensive network in Punjab and NWFP. The corporation has more than 41 a lot of experience in operation and repair of high-pressure gas transmission and distribution systems. It has as well expanded it is activities to attempt the planning, creating and development of pipelines, both for itself and also other organizations.
SNGPL operates in that region of the nation with a rapidly growing with regard to natural gas and power generation due to significant industrial development. Sui The southern part of Gas Firm (SSGC) Sui Southern Gas Company (SSGC) is Pakistan’s leading included gas Firm. The company can be engaged in the company of indication and division of natural gas besides building of high pressure transmission and low pressure distribution systems SSGCL transmitting system expands from Sui in Balochistan to Karachi in Sindh comprising above 2780 KM of high pressure pipeline including 12 , 24, in diameter.
The distribution actions covering over 650 towns in the Sindh and Balochistan are prepared through their regional office buildings. An average of regarding 234, 553 million cuft (MMCFD) gas was sold in 2001-2002 to over 1 . six million commercial, commercial and domestic buyers in these locations through a circulation network of over 22, 890 Kilometres. Type of Examine This study aims to examine the economic statements of oil and gas advertising companies then generalize the result for the whole sector. Thus as a result of purpose of the analysis it is classifies as detailed study.
Procedure Base Season and Length of Analysis To get the examination, 2001 has been taken as the bottom year, plus the performance in the next five years has been compared with the base season. Analysis Strategies The research of financial data uses various methods to evaluate the relative importance of the data that was offered in financial transactions of a organization. The methods found in the analysis of the marketing sector of Pakistan can be a blend of Rate analysis Common size evaluation Ratio Analysis The following proportions were used on the blend data of five years: 1 .
Liquidity Percentages related to the liquidity of short term resources and short-term debt paying out ability were Working Capital Current Ratio Product sales to Seed money 2 . Success Ratios gauge the ability of your firm to create earnings. The ratios employed were: Total Asset Yield Operating Cash flow Margin Come back on Total Equity Revenue Gross Income Margin Net Profit Perimeter 3. Debts Ratios that measure the long term debt paying out ability of the firm employed were: Personal debt Ratio Financial debt to Collateral Ratio Fixed charge coverage 4. Their market value Ratios that measure the come back that is getting given to the stockholders were: Earning every share
Dividend per share Dividend Payout These economical ratios were calculated for each and every of the years from 2001 to 2005 and then plotted to see the basic trend. These people were then analyzed to identify various turning details in the trends, and to begin to see the underlying causes of the changes in trends that had been occurring. Prevalent Size Evaluation A common size analysis communicates comparisons in percentages. Pertaining to the financial data there is -Horizontal and vertical evaluation of the next balance sheet items, using 2001 as a base year (horizontal) and total assets as base (vertical): Fixed asset
Capital work in progress Permanent investments Current assets Stores , excessive Equity and liabilities were shown as being a percentage of total financial obligations. -Horizontal and vertical research of the following Profit and Loss things with 2001 as a base year (horizontal) and Net Sales because base (vertical): Financial Fees Operating price Gross Revenue Taxes Profit before Tax CHAPTER four RESULTS AND DISCUSSION Stand 4. one particular: Pakistan State Oil Company Limited Equilibrium Sheets (2001-2005) Table four. 2: Pakistan State Olive oil Company Limited Income Claims (2001-2005) 2001 2002 2003 2004 2006 Sales (Net) 43305. 67 133136. 52 172445. seventy seven 161537. 98 212503. 66 Cost of Product sales 136933. fifty eight 126359. 13 163490. fifty eight 152346. 86 198757. 32 Gross Earnings 6372. 2009 6777. 39 8955. nineteen 9191. 12 13746. 33 Operating Expenses 2367. 97 2210. 69 2750. twenty six 4223. 43 5443. fifty eight Operating Earnings 4004. 12 4566. six 6204. 93 4967. 69 8302. 75 Financial Charges 778. 7 979. twenty-two 274. 78 189. 08 370. six Other income 225. 94 1549. seventy seven 279. seventeen 1484. 36 1294. 34 Profit Just before Taxation 3451. 36 5137. 25 6209. 32 6262. 97 9226. 39 Taxation 1200 49 2179 2181 2183 Profit After Taxation 2251. 36 3188. twenty-five 4030. 32 4081. 97 7043. 39 Table four.: Pakistan Point out Oil Firm Limited Straight Common Scale Balance Bedsheets (2001-2005) 2001 2002 the year 2003 2004 2005 Current Assets 81. 44% 74. 84% 69. 41% 74. 60% 78. 22% Fixed Resources (Gross) twenty-one. 99% twenty four. 10% 30. 01% 25. 40% twenty one. 78% Downgrading 11. 02% 11. 90% 13. 96% 12. 51% 12. 08% Fixed Resources (Net) 12. 97% doze. 21% 12-15. 05% doze. 89% being unfaithful. 70% Capital work in Progress 2 . 28% 2 . 72% 3. 53% 2 . 76% 2 . 39% Long Term Investment , Debris 5. 32% 10. 23% 12. 01% 9. 73% 9. 69% Total Resources 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Current Debts 63. 63% 62. 39% 55. 40% 59. 72% 62. 92% Deferred Taxation 0. 00%. 44% 1 . 15% 1 ) 33% 1 ) 21% Long-term Liabilities three or more. 82% 1 . 85% three or more. 05% installment payments on your 53% 2 . 63% Total Liabilities 67. 45% 65. 69% 59. 60% 63. 58% sixty six. 76% Paid-Up Capital 4. 74% 4. 36% a few. 30% 5. 04% a few. 29% Stores , Surplus 27. many of these 29. 96% 35. 09% 32. 38% 29. 95% Total Debts , Capital 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Analysis: The vertical common size of the B/S of PSO implies that the current and fixed property are basically the same and there is major improvement in long term investment , deposits while on the liability side again the existing and long-term liabilities happen to be pretty much continuous.
The stores , excessive have been raising with the passage of time. Desk 4. 4: Pakistan Express Oil Business Limited Up and down Common Size of Income statement (2001-2005) 2001 2002 2003 2004 2006 Sales (Net) 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Cost of Revenue 95. 57% 94. 91% 94. 81% 94. 31% 93. 53% Gross Revenue 4. 45% 5. 09% 5. 19% 5. 69% 6. 47% Operating Bills 1 . 65% 1 . 66% 1 . 59% 2 . 61% 2 . 56% Operating Income 2 . 79% 3. 43% 3. 60% 3. 08% 3. 91% Financial Fees 0. 54% 0. 74% 0. 16% 0. 12% 0. 17% Other income 0. 16% 1 . 16% 0. 16% 0. 92% 0. 61%
Profit Before Taxation installment payments on your 41% 3. 86% three or more. 60% several. 88% some. 34% Taxation 0. 84% 1 . 46% 1 . 26% 1 . 35% 1 . 03% Profit After Taxation 1 ) 57% 2 . 39% 2 . 34% 2 . 53% 3. 31% Evaluation: The comprehensive analysis from the I/S of PSO demonstrates the oil marketing company has been able to slightly reduce its cost of sales which has resulted in a significant embrace the major profit even though the operating income has also demonstrated an increase as the functioning expenses include increased but also in a lesser amount. The economic charges have been drastically reduce due to a better financial functionality.
There has been a marked improvement in the additional income which in turn shows that the company has increased it is sources of income and this has led to higher income. Table some. 5: Pakistan State Essential oil Company Limited Horizontal Common Size of Stability Sheets (2001-2005) 2001 2002 2003 2005 2005 Current Assets totally -0. 001% -8. 54% 28. 90% 65. 98% Fixed Property (Gross) completely 19. 269% 41. 53% 62. 56% 71. 13% Depreciation fully 17. 468% 35. 91% 59. 74% 89. 36% Fixed Resources (Net) fully 21. 078% 47. 18% 65. forty percent 52. 81% Capital operate Progress fully 30. 150% 66. 47% 70. 52% 81. 58% Long Term Expense , Deposit 100% 109. 346% a hunread forty two. 40% 158. 6% 214. 84% Total Assets completely 8. 811% 7. 30% 40. 72% 72. 81% Current Liabilities 100% six. 701% -6. 57% 32. 08% 75. 88% Deferred Taxation totally 47200% 37250% 56425% 63018% Long Term Financial obligations 100% -47. 371% -14. 53% -7. 05% 18. 70% Total Liabilities completely 5. 958% -5. 19% 32. 63% 71. 02% Financed Simply by Paid-Up Capital 100% zero. 000% 20. 00% twenty. 00% 20. 00% Stores , Excessive 100% seventeen. 237% 35. 44% 63. 87% eighty six. 15% Total Liabilities , Capital totally 8. 811% 7. 30% 40. 72% 72. 81% Analysis: The horizontal common size of the B/S of PSO drastically tells which the current property have elevated substantially largely due to the increase in sales.
Another aspect to note is the lot of increase in the long term investments which is due to different new projects that have been performed and this demonstrates the company is expanding. The increase in current liabilities is principally due to the increase in credit product sales and also as a significant portion of long term financial loans has been converted into current section while the embrace long term financial obligations is mainly due to the increase in worker benefits which again shows that the company is doing very well. Great indicator in the good performance is the embrace the reserves , excessive section of the B/S.
Table 4. 6: Pakistan Point out Oil Firm Limited Side to side Common Scale Income statement (2001-2005) 2001 2002 the year 2003 2004 2005 Sales (Net) 100% -7. 096% 20. 33% 12. 72% 48. 29% Expense of Sales 100% -7. 722% 19. 39% 11. 26% 45. 15% Gross Profit 100% six. 361% forty. 54% forty-four. 24% 115. 73% Working Expenses totally -6. 642% 16. 14% 78. 36% 129. 88% Operating Revenue 100% 13. 050% fifty four. 96% twenty-four. 06% 107. 36% Economical Charges completely 25. 751% -64. 71% -75. 72% -52. forty percent Other cash flow 100% 585. 921% 3. 56% 556. 97% 472. 87% Income Before Taxation 100% forty-eight. 847% 79. 91% seventy eight. 46% 167. 33% Taxation 100% sixty two. 417% 81. 58% seventy eight. 75% 81. 92%
Revenue After Taxation 100% forty one. 614% 79. 02% seventy eight. 31% 212. 85% Analysis: The horizontal common size of the I/S clearly indicates the extreme improvement in the sales which is nearly around 50 percent while as a result of a lesser embrace the cost of sales the low profit is up by above 115%. The financial costs have been lowered to a lot more than 50% and a huge increase in other sources of income has resulted in higher income before taxation. Table 4. 7: Shell Pakistan Limited Balance Bedding (2001-2005) 2001 2002 the year 2003 2004 june 2006 Current Resources 6470. sixty four 7145. twenty-two 6149. 68 7912. 63 12725. 13 Fixed Assets (Gross) 6027. 49 6705. 37 7554. 29 8708. 5 9569. 78 Gathered Depreciation 2189. 29 2738. 78 3290. 57 3852. 84 4532. 53 Set Assets (Net) 3838. twenty 3966. fifty nine 4263. seventy two 4855. 21 years old 5037. 25 Capital Work in Progress 464. 52 534. 61 564. 44 544. 07 582. 38 Permanent Investment , Deposits 1294. 68 186. 27 98. 93 2032. 22 1988. 13 Total Assets 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 Liabilities Current Debts 6470. 66 5934. 76 7029. 83 9042. 39 11951. 06 Long Term Liabilities 66. 84 47. fifty-one 77. 86 43. 49 48. twenty two Deferred Taxation 141 29. 24 seventeen. 26 126. 42 20. 74 Financed By Paid-Up Capital 350. 66 three hundred and fifty. 66 350. 66 three hundred and fifty. 66 350. 66 Reserves , Surplus 038. fifth there�s 89 5470. 52 5501. 16 5781. 87 7962. 21 years old Total Debts , Collateral 12068. apr 11832. 69 12976. seventy seven 15344. 13 20332. fifth there�s 89 Table 4. 8: Layer Pakistan Limited Income Assertions (2001-2005) 2001 2002 2003 2004 2006 Sales (Net) 65725. 15 69042. 05 77822. 82 79180. thirty five 98526. 62 Cost of Sales 61628. forty-eight 64164. twenty three 72049. forty seven 72973. 14 89684. 58 Gross Earnings 4096. 67 4877. 82 5773. 35 6207. twenty-four 8842. ’04 Operating Bills 2486. 67 3292. 80 3794. thirty six 3806. 01 4609. seventy seven Operating Income 1610. 00 1584. 80 1978. 99 2401. 23 4232. twenty-seven Financial Fees 50. 27 46. seventy six 51. 48 224. 33 596. 55 Other Cash flow 191. seventy two 154. 46 110. thirty-two 12. 02 22. thirty-three
Profit Prior to Taxation 1630. 45 1572. 44 1899. 91 2188. 92 3658. 05 Taxation 574. 40 509. sixty two 644. 91 680. 91 1197. nineteen Profit Following Taxation 1056. 03 1062. 81 1255. 00 1508. 01 2460. 86 Stand 4. being unfaithful: Shell Pakistan Limited Straight Common Size of Balance Sheets (2001-2005) 2001 2002 2003 2004 june 2006 Current Resources 53. 62% 60. 39% 47. 39% 51. 58% 62. 58% Fixed Resources (Gross) 49. 95% 56. 67% 54.99. 21% 56. 75% forty seven. 07% Gathered Depreciation 18. 14% 23. 15% 25. 36% twenty-five. 11% twenty-two. 29% Set Assets (Net) 31. 80% 33. 52% 32. 86% 31. 64% 24. 77% Capital Work in Progress 3. 85% 5. 52% some. 35% a few. 55% installment payments on your 86% Long Term Investment , Deposits zero. 73% 1 . 57% 12-15. 40% 13. 24% 9. 78% Total Assets 90. 00% 100. 00% 90. 00% 90. 00% 90. 00% Current Liabilities 53. 62% 60. 16% 54. 17% 54.99. 93% fifty eight. 78% Long-term Liabilities 0. 55% 0. 40% zero. 60% 0. 28% 0. 24% Deferred Taxation 1 ) 17% 0. 25% 0. 13% 0. 82% zero. 10% Financed By Paid-Up Capital installment payments on your 91% installment payments on your 96% 2 . 70% 2 . 29% 1 . 72% Supplies , Excessive 41. 73% 46. 23% 42. 39% 37. 68% 39. 16% Total Liabilities , Fairness 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% Analysis: Straight common size of the B/S of Cover Pakistan demonstrates that the company has been pretty much keeping its percentage of all the assets, liabilities
