Documente Academic
Documente Profesional
Documente Cultură
Of
Pakistan State Oil Company Limited
&
Shell Pakistan Limited
Road Map
Recommendations
INTRODUCTION
Introduction
The Pakistani oil marketing sector mainly consist of
three companies namely Pakistan State Oil
Company, Shell Pakistan and Caltex Pakistan.
• PSO
• SPL
2. Determinethe
performance
3. Financial
position
DATA COLLECTION
Data Collection
Balance Sheets
Balance Sheets PSO SPL
ASSETS 2008 2007 2006 2008 2007 2006
Rs (000) Rs (000)
Total Equity and Liabilities 127110020 74737315 70168524 39664859 29211927 28292399
Data analysis
Rs (000) Rs (000)
Profit after operating expenses 20740605 6246616 9869884 8174906 919262 4835939
Share of profit of association net of tax 294318 330306 1038939 212248 122250 43573
Profit for the year 14053795 4689798 7524701 5137094 706659 3147124
Data analysis
•Return on Assets
(Net Income / Total Assets)*100 Years 2008 2007 2006
PSO 11.06% 6.28% 10.72%
SPL 12.95% 2.42% 11.12%
Total Equity and Liabilities 127110020 74737315 70168524 100.00 100.00 100.00
Data analysis
Total Equity and Liabilities 39664859 29211927 28292399 100.00 100.00 100.00
Data analysis
PSO Profit & Loss Account
Vertical Analysis
Profit and Loss Account PSO Vertical Analysis
Non-Current Assets 11231328 12224042 12133849 92.56 100.74 100 (7.44) 0.74
Current Assets 115878692 62513273 58034675 199.67 107.72 100 99.7 7.72
Total Net Assets 127110020 74737315 70168524 181.15 106.51 100 81.1 6.51
Rs (000) % % % % %
Non-Current Assets 9444650 9498295 7900045 119.55 120.23 100 19.6 20.2
Current Assets 30220209 19713632 20392354 148.19 96.67 100 48.2 (3.33)
Total Net Assets 39664859 29211927 28292399 140.20 103.25 100 40.2 3.25
Non-Current Liabilities 2745410 139041 157643 1741.54 88.20 100 1642 (11.8)
Current Liabilities 23307811 19612115 17978010 129.65 109.09 100 29.6 9.09
Total Equity and Liabilities 39664859 29211927 28292399 140.20 103.25 100 40.2 3.25
Data analysis
PSO Profit & Loss Account
Horizontal Analysis
Profit and Loss Account PSO Horizontal Analysis Changes in %
2008 2007 2006 2008 2007 2006 2008 2007
Rs (000) % % % % %
Profit for the year 5137094 706659 3147124 163.23 22.45 100.00 63.23 (77.55)
CONCLUSIONS
Conclusions
Current Ratios
1.40
1.20
1.00
Ratio 0.80
0.60
0.40
0.20
0.00
2008 2007 2006
PSO 1.24 1.22 1.23
SPL 1.30 1.01 1.13
Years
Both companies not able to maintain the normal limit of current ratio
which means their current liabilities are more than the current assets.
Conclusions
Gross Profit Margin
10
0
2008 2007 2006
PSO 5.15 2.98 4.88
SPL 9.61 4.90 7.50
Year
Gross profit margin showing that SPL have a good and very attractive
cost of goods sold and PSO not have good gross profit margin
Conclusions
Net Profit Margin
4.00
3.50
Percentage of changes
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2008 2007 2006
PSO 2.84 1.34 2.52
SPL 3.67 0.61 2.68
Years
In the Net profit margin SPL have the advantage over the PSO, because of
their all expenses are in control and budgeted and that’s why their Net profit
margin is very effective.
Conclusions
Earning Per Share
100
80
60
Rs
40
20
0
2008 2007 2006
PSO 81.94 27.34 43.87
SPL 93.76 12.90 57.44
Years
Earning per share in 2008 Shell leading with Rs.93.76 per share in year 2007
PSO leading Rs.27.34 per share and in 2006 SPL Rs.57.44 per share
profitability its means SPL profitability level is good.
RECOMMENDATIONS
Recommendations
Both companies current ratio not showing the normal limits
their Current assets should be twice the current liabilities.
PSO cost of production is higher than the SPL. Its means that
PSO not producing products effectively or efficiently PSO
have to reduce their Production cost.