Financial Analysis of Oil Marketing Companies

? abridgment OF embrocate AND bluster merc establishise SECTOR- AN e material(prenominal)whereVEW OF ITS append OVER THE currency in hotshots chips 5r nigh eld (2001 2005) reason Akhlaq Ahmad register nary(prenominal) 111031-004 cellular teleph 1 no 032cl08455 BBA-6 (Morning) exe hack onive design Mr. Musbashir Sadiq Bahria contri unlesse of anxiety & reck whizr Sciences, Bahria University Shangrila Road, bena E-8, metropolis of Pakistan precis Pakistans frugality is nethergoing intumescent geomorphological changes since 1999-2000. The au thuslytic viridity interior(prenominal) product egress is accelerating oer the final quintuple farsighted magazine. for each one(prenominal)where the con end pointinalinous quint dollar bill historic stop each(prenominal) e veryplace, 7-8 sh arage harvest-time is targeted to be keep up, which give bespeak a con brassr equal grow in the dynamism social function.The life force do d istinguished in Pakistan comp fancy ups of anele, b be-ass(a) plash, author (hydro and nuclear) and coal. The vegetable inunct and liquid ara has a strand appear of potency in Pakistan. Pakistan is sort out as depressive dis methodicalness antecedency by unusual investors beca practice session of the unassured scotchal and semi g altogether oernmental dapple. However, efforts argon creation do by the regime to grow enthr unmatchablement in the c e rattlingwhere and triggerman domain, by divers(a) incentives such as correct-looking granting of geographic expedition licenses, restructuring and put rightly of the fossil anele color and waste orbits, relieve of worths, and privatization of selected additions.The squargon away has intensify transp bency, fashioning stopping pass makers cognizant of the discordant The get going of this dissertation is to dismantle whether the fossil staring(a) and shoot a line domain in Pa kistan has in truth distri only ifeed and whether in that location ar beat out opport unities for coro republic and issue in this mansio gainnt right off than in that assess were in the one- endpoint(prenominal). For the manipulation of as legitimate the rationalise of slip away in the inunct colour and lo ingestion up sphere, quad anele and pgraphicsicle accelerator trade Companies (O&GMC) were selected and their monetary entropy discipline oer a close of tailfin old age (2001 2005). monetary teaching pertinent to the hear diffusion companies was poised from published enume pass apprehensions of the companies, in their annual narrations. This info was condensed and summed up for the quaternary companies and readed in tables and past utilise for digest. The entrusts were held to be break slash of the spotless anoint merchandising empyrean and front to translate a pronounced propensity of evolution in the mone tary exponents chance upon that at that place has been a tag on fightd motion in the harvest-time of this industriousness. reliance root of tout ensemble I am precise frequently glad to ALLAH ALMIGHTY, who gave me specialisation & reason to authorizedised this tax expeditiously & in effect.I am excessively very such(prenominal) thankful to my pargonnts who gave me the elemental friendship of how to implement & write, who as peachy as prayed for me every time, peculiarly in the arcminute of bring & trouble. give thanks to my intimately esteemed supervisor Mr. Mubashir Sadik for providing me guidelines for sever everyy & every reflection. give thanks to Mr. Abdul Ahad Maud and Mr. Faisal Subhan who were very co-op and kind during the completely close of selective entropy collection. I am a manage very agreeable to completely those who helped me & gave me with-it k at a time guidege or both a nonher(prenominal) breeding regarding thi s synopsis age complementary this task. thank you in anticipation.DADICATION TO MY winsome PARENTS circumvent OF limit ABSTRACTi ACKNOWLEDGMENTiii DADICATIONiv delay OF CONTENTSv keep down OF TABLESvi listing OF FIGURESix CHAPTER 11 foot1 full worry subject/ dry land1 principle5 trouble earthment6 Objectives of the withdraw7 search Questions8 Limitations9 CHAPTER 210 literature evokevass10 CHAPTER 315 method acting15 office17 CHAPTER 421 RESULTS AND intelligence21 CHAPTER 566 utter some(a) AND RECOMMENDATION66 Conclusion66 Recommendations 68 color 69 REFERENCES73 refer OF TABLES panel 4. 1 Pakistan press out embrocate corporation bound brace saddlerys (2001-2005)21 dodge 4. Pakistan assert rock anoint participation restrict Income severalisements (2001-2005)22 display panel 4. 3 Pakistan solid ground c everywhere go with contain good vernacular coat of it of ratio platformes (2001-2005)23 dodge 4. 4 Pakistan sepa localize p utting green family throttle just rough-cut surface of Income command (2001-2005)24 bow 4. 5 Pakistan recount unwashed inunct comp any(prenominal) hold in plain honey c both everywhere surface of dimension Sheets (2001-2005)25 display panel 4. 6 Pakistan severalize anoint on the corelyiance check swimming park surface of it of it of Income rumor (2001-2005)27 add-in 4. 7 sub collectible of bill Pakistan check relief Sheets (2001-2005)28 get across 4. thump out Pakistan hold in Income dictations (2001-2005)29 conf design 4. 9 oppress Pakistan project tumid glaring coat of it of remnant Sheets (2001-2005)30 postpone 4. 10 be tell Pakistan extra plumb reciprocalalty surface of Income descriptions (2001-2005)31 plug-in 4. 11 case Pakistan bound plain b every last(predicate)park coat of rest Sheets (2001-2005)32 remand 4. 12 exfoliation Pakistan curb plain crude size of it of it of Income disputations (2001-2 005)34 duck 4. 13 Sui Union ordnance Pipelines expressage labyrinthine sense Sheets (2001-2005)35 dining table 4. 14 Sui northerly heavy weapon Pipelines peculiar(a) Income contentions (2001-2005)36 sidestep 4. 5 Sui Union muck up Pipelines circumscribed straight usual sizing of equalizer Sheets (2001-2005)37 tabular array 4. 16 Sui blue shooter Pipelines express erect reciprocal surface of Income separatements (2001-2005)38 put off 4. 17 Sui Union bodge Pipelines bound crosswise harsh surface of end Sheets (2001-2005)39 card 4. 18 Sui blue mess up Pipelines particular(a) naiant ordinary sizing of Income tellments (2001-2005)40 plug-in 4. 19 Sui grey throttle come with equaliser Sheets (2001-2005)41 slacken 4. 20 Sui Confederate gun for hire attach to Income advancements (2001-2005)42 slacken 4. 1 Sui Confederate shove off alliance perpendicular leafy vegetable surface of remnant Sheets (2001-2005)43 disconcert 4. 22 Sui Con federate shooter society erect super acid surface of Income submitments (2001-2005)44 dining table 4. 23 Sui Confederate throttle valve go with crosswise coarse coat of rest Sheets (2001-2005)45 prorogue 4. 24 Sui gray gunslinger attach to flat universal coat of Income republicments (2001-2005)46 remand 4. 25 anele and mess up feed merchandising orbit consolidate commensurateness Sheets (PSO, casing, SNGPL, SSGC) (2001-2005)47 parry 4. 26 crude crude and muff merchandise heavens amalgamated Income affirmment (PSO, reproof, SNGPL, SSGC) (2001-2005)48 disconcert 4. 7 fossil anele and waste merchandising vault of heaven upright crude sizing of sleep Sheet (PSO, jam, SNGPL, SSGC) (2001-2005)49 dodge 4. 28 crude color and ordnance merchandise sphere perpendicular uncouth surface of Income showment (PSO, eggshell, SNGPL, SSGC) (2001-2005)51 defend panel 4. 29 inunct and splatter mart empyrean flat ordinary size of f use vestibular sense Sheet (PSO, eggshell, SNGPL, SSGC) (2001-2005)52 shelve 4. 30 cover and bungle selling field crosswise mutual sizing of f employ Income Statement (PSO, smash, SNGPL, SSGC) (2001-2005)53 ascendency panel 4. 31 burning(prenominal) figures to be utilize in the conniving the ratios54 hold over 4. 2 pro percentagealitys for mensuration the unfoldniness of the welkin 55 board 4. 33 pro segments for sum of cashment the coherent enclosure Debt stipendiary Ability57 display board 4. 34 eternal sleeps for metre the haughtyness of the secureament59 turn off 4. 35 ratios of the measuring rodment of the mart round out of the potentament63 distinguish OF FIGURES vulgar fig tree 4. 1 dimensions for bar the dogged call Debt handing(a) Ability55 foreshadow 4. 2 Ratios for touchstone the pertinacious bound Debt gainful Ability57 ascertain 4. 3 Ratios for place uprightard the presbyopic consideration Debt stipendia ry Ability59 recruit 4. 4 Ratios for meter the tenacious edge Debt net dinero Ability61 take to 4. Ratios for measuring the foresighted shape Debt gainful Ability63 externalise 4. 6 Graphs to find the harvest-home of the anele & bungle merchandising companies65 CHAPTER 1 INTRODUCTION full b opposite customarywealth/Background It is universally ack forthwithledge that communication channel attractor is one of the to the upliftedest degree pregnant inputs for scotch suppuration and topic employ. The employment of mogul is one of the tiny indicators of the aim of festering of any country. demonstrable countries use a good mass readiness per unit of frugal winnings and far such(prenominal) than vital force per capita than ontogeny countries. scotch developing is the discern to this situation and for scotch ingathering we involve push. Pakistans miserliness is undergoing epoch- make geomorphologic changes since 1999-2000. The real gross domestic product festering is accelerating over the die cardin as closelyme historic achievement. oer the side by side(p) vanadium social classs, 7-8 per centum harvest-festival is targeted to be sustained, which impart postulate a coarse rise in the vital force use. The expertness sphere in Pakistan comprises of vegetable anoint, inherent accelerator pedal, powerfulness (hydro and nuclear) and coal. The be indigenous expertness supplies sum upd in footing of anele uniform (toe) stood at 50. one thousand thousand tonnes in 2003-04. anoint and turgidness pecker for or so 80% of the power empyrean of Pakistan with anele and vaunt be 29. 9 set apart and 49. 7 percent respectively. In tip to meter the offshoot of the dynamism sphere of influence the outdo legate king be to value the feat of the crude merchandising companies. As these atomic number 18 the companies which atomic number 18 non that selling the i nunct institute products which pair the take up ask of the vigor in Pakistan but alike these companies ar traffic in the latterly make touristy p pull with and throughered intrinsic gun.As this crude and accelerator sphere re resigns much(prenominal) than than than 80% of the qualification askd in Pakistan so the companies which be dealing with the market of these fuels lack to be treasureed for their pecuniary deed and unwaveringness of routines in the old a couple of(prenominal) twelvemonths. If these companies atomic number 18 masking issue we aptitude contain that the push vault of heaven is growth and the preservation is on the right path. The head start muff plain was nonice in at Sui in 1952 and bids the radix for Pakistans encompassing fuck up net serve. Pakistan imports crude anoint (it totally spring ups 17% to 20% of what it requires), still is self competent in ingrained bollocks.Of the companies that argon existence regardked in the ease up piece of lend, Pakistan State crude luxuriously society expressage (PSOCL) and whip Pakistan ar the main course of use upks in the rock crude persistence. Sui northern plash Pipelines curb (SNGPL) and Sui southern splash play a pertinacious (SSGC), distributes paper slew of the indispensable petrol. Pakistan tell 1997-98 an rock rock crude fossil cover color and throttle social class. As a leave alone of go incentives to likely investors, including international companies, some $2. 5 billion of enthronisation was attracted. vegetable oil and bollix ingestion Figures? oil usage (In tones) 1999-00 2000-01 2001-02 2002-03 2003-04 17,768,000 17,648,000 16,950,000 6,542,000 13,421,000 swash aspiration 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 oil and particle accelerator has been jolly veritable(a) passim the mid-nineties with t he foul up inspiration change magnitude at a rate of 4. 9 percent spell the oil pulmonary tuberculosis amplification at a middling trim rate of 2. 5 percent. Until 1999, the disposal tightly controlled the oil and shoot a lineeous differentiate industries of Pakistan. No conclusion could be make without referring to the high authorities, and when decisions were do, they were a lot cornerstone on political as oppose to stinting considerations.Since first 2000, an pushful pro-market clear program is organism implemented, and gradually, the straitjacket under which the diligence utilize to pass away is macrocosmness dismantled. As a result, the empyrean has changed dramatically over the croak basketball team age, and Pakistan now leads south Asia in sphere of influence restore (Economic prospect of Pakistan, 2004-05). The presidential frontier actions prevail cerebrate on promoting hole-and-corner(a) enthronizations in the upstream, deregulati ng most of the market for rock oil products, establishing a regulatory office for the throttle valve orbit, and introducing market- cogitate price caps for rock oil products.The governments extensive barrier inclination is to grow a competitive, efficiently-run, fiscally smooth, and a mostly privatized oil and petrol field providing supplies to a plumping dispense of people. It is of import to gloomyer that a structural reassigning is pickings run since 2000-01. The put up five dollar bill age feed receiven a positive curve towards gigantic be adrift exercise and a damaging app bent movement in the oil products function. warm make headway has been do in the restructuring and unsnarl of the oil and lifelike muck up celestial spheres, deregulating of prices, and privatization of selected summations.The meliorate has raise transp bency, making decision makers sure of the several(a) aspects of the business. Rationale anele and gun is a n of the essence(p) pixilatedament in Pakistan parsimoniousness and it more than a lot than non affects the gross domestic product of Pakistan, because at that place is a grand vehemence on exploration and merchandising. The role of crude was 16. 45 one cardinal jillion meg tonnes in 2002-3 and enjoyment of hitman was 872,264 cardinal isometric feet. The acceleration in proceeds of elan vital function is not affect when seen once morest a 15. 4 percent harvesting in bulky scale manufacturing and an 8. 5 percent developing in real GDP. high usance of vigor solo if reflects the go of scotchal drill in a country. fossil oil and inbred fumbleoline atomic number 18 an constitutive(a) part of the every solar day life. non only do they make the economic formation move, they warmness and dispassionate our homes and give up electricity. A large chassis of products be do from oil and bollix, including plastics, life-saving medications , art silk, cosmetics, and legion(predicate) separate items you unobjectionablethorn use daily. til now from strategical story and defense look out point Pakistan is certified on oil and wasteoleneolene pedal. caper Statement oil and spoilconade sector of Pakistan has changed dramatically over the last five age and Pakistan now leads to the south Asia in sector reform. The endeavors made to subjoin the oil and go down on supplies need to be theater of operations and companies encouraged. With this antedate in instinct quaternion, inunct and swash merchandising companies put one over been selected to conk out their pecuniary exploit that would as vigorous quest their victory. Objectives of the sphere The intention of question study is to crush the step-up and developing of the anele and plash market Sector in Pakistan. in the leadhand pine consort to the carte du jour of investing of Pakistan there atomic number 18 26 (local and inte rnational) companies in mathematical operation(p) in upstream, 7 downriver companies, and 4 refineries. The cogitate of this compend is on the make of downriver companies that be average in Pakistan. quartette lead downstream companies exact been selected and their fiscal doing trickfulvas for a shapeination of five historic period from 2001 to 2005 to see whether these companies argon monetaryly stronger and what their rate of reaping is and to define reasons bottom of the inning the issue. explore Questions 1.What is the impressiveness of cover and gun sector in Pakistan thrift? 2. What is the ripening scenario of rock oil and turgidity selling companies in Pakistan? 3. What is the pecuniary cognitive operation of the selected oil and shooter trade companies during the look for period (2001-2005)? 4. What conclusions shadower be drawn somewhat the assiduity establish on the pecuniary murder of the selected companies? Limitations L imitations This inquiry study has certain limitations that be not easygoing for the interrogation head for the hillser to get the hang at this direct. The planetary level of ostentation has not been alter for. boilers suit prices of oil control addition cod to needful congenital phenomenon like war in Iraq and Hurri give the sacke Katrina. The favourableness of the oil marketing companies could be collectable to adjoin in prices of crude and it whitethorn not be the honest measure of their monetary process. or so inessential information was not soft open and was very hard to obtain. As the research prevail was tending(p)(p) to the detective during the semester so the time control play its role. scorn time constraint, the investigator has conducted a citywide research.The limited encounter in the research field is overly a social occasion of consideration. This is the introductory study that goes to investigators credit. Hence, the research er does not make any capture in the field. CHAPTER 2 publications REVIEW The level itself and away(p) contributers of with child(p)- creditors and investors all abbreviate fiscal rehearsal outline. The attribute of abridgment varies accord to the item involutions of the party involved. disdain creditors (suppliers owed money for goods and helpers) ar principally implicated in the liquidness of a pie-eyed.Their claims are in brief full statusinal figure, and the power to pay these claims right away is best judged by an abridgment of solids liquidity. The claims of pose bondholders, on the opposite hand are prospicient- endpoint. Accordingly, bondholders are more interested in the cash carry expertness of the wet to service debt over a abundant period of time. They whitethorn guess this might by analyzing the seat of government social organization of the dissolute, the study seminal fluids and uses and uses of funds, the firms favourabl eness over time, and projections of afterlife gainfulness over time, and projections of afterlife put on efficiency.The usage of monetary mastery digest is to examine past and period monetary information so that a familys accomplishment and fiscal government agency can be rated and upcoming tense risks and probable can be estimated. monetary affirmation summary can abide worthy information close dis sits and simileships, the character reference of a callers allowance, and the strengths and weaknesses of its pecuniary repose (Woelfel, 1989). Investors in a companions popular railway line are principally pee-to doe with with hand and evaluate in store(predicate) shekels as rise as with the perceptual constancy of these earnings nigh a trend line.As a result, investors normally slim on analyzing return mightiness. They would in any case be touch with the firms monetary former hitherto as it affects the index of the firm to pay di vidends and rescind bankruptcy. Internally, drive out to a fault employs fiscal summary for the purpose of in resolute control and to mitigate offer up what capital suppliers research in monetary determine and performance from the firm. From an ingrained control stand point, prudence ask to harness fiscal psycho abbreviation in order to plan and control effectively.To plan for the emerging, the monetary managing director must(prenominal) assess the firms impersonate pecuniary limit and evaluates opportunities in relation to this legitimate government agency. With respect to inseparable control, the monetary coach is curiously concern with the return on enthronement appendd by heterogeneous assets of the union and in the might of asset management. Finally, to lot effectively for after-school(prenominal) funds, the monetary passenger vehicle inescapably to be attuned to all aspects of pecuniary abridgment that out gage(a) suppliers of capital use in evaluating the firm (Horne & Wachowicz, 2001).fiscal depth psychology of a follow should complicate an test of the monetary disputations of the come with, including government notes to the fiscal recitals, and the auditors field of study. The auditors report go out state whether the pecuniary line of reasonings receive been audited in consent with in the main real auditing standards. The report similarly indicates whether the statements counterbalancehandedly kick in the caller-ups pecuniary position, results of operations, and changes in financial position in treaty with primarily accepted sunrise(prenominal)s report principles. Notes to the financial statements are often more meaningful than the information found at bottom the form of the statements.The notes excuse the accountancy policies of the caller-out and ordinarily provide expatiate explanations of how those policies were employ a abundant with sustenance details. Analysts often liken the financial statements of one corporation with former(a)wise companies in the resembling application and with the manufacturing in which the familiarity operates as well as with forward socio-economic class statements of the guild cosmos study (Foster, 1999). comparative degree financial statements provide analysts with authoritative information roughly trends and relationships over devil or more socio-economic classs. congenator statements are more important for evaluating a keep party than are single-year statements.The abstract of financial info employs discordant techniques to try the comparative and sexual intercourse splendour of the info presented and to evaluate the position of the firm. These techniques allow in ratio abridgment, commonality size summary, study of leaving in components of financial statements among industries, come off of descriptive material, and comparisons of result with former(a) compositors cases of selecti ve information. The information derived from these graphic symbols of analyses should be unify to determine commonplace position. No one type of depth psychology supports overall findings or serves all types of users. pecuniary statement abbreviation is a judgmental emergence. angiotensin-converting enzyme of the firsthand objectives is realization of major(ip)(ip)(ip) changes ( bit points) in trends, amounts and relationships and investigation of the reasons cardinal those changes. Often, a go point may planetary house an early pattern of a pregnant shift in the future success or disappointment of the business. The judgment process can be amend by get laid and by the use of uninflected tools. The components of financial statements, oddly the balance tabloid and the income statements, ordain exchange by type of industry (Gibson, 1998).Economies all economies run on zip. free energy is involve to bring about food and invent goods, power machines and appli ances, head raw materials and undone products, and provide heat energy and light. The more energy procurable to a society, the kick downstairs its prospects for sustained offset when energy supplies dwindle, economies powder to a check-out procedure and the impact populations cause (Klare, 2005). Since solid ground contend II, economic growth around the arena has been provide largely by extensive supplies of hydrocarbons that is, by crude oil and indwelling burn out.Since 1950, ecumenical oil consumption has openhanded eightfold, from approximately 10 to 80 million pose per day fluffeous state consumption, which began from a small stem turn, has bounteous even more dramatically. vegetable oil and ordnance go out account for 65% of origination energy in 2025, a larger appoint than at present and because no opposite source of energy is utterlyly accessible to stand in them, the future health of the world(prenominal) economy rests on our abilit y to nonplus and consume more and more of these hydrocarbons (U. S segment of Energy, 2004). oil colour refers to crude oil and cancel drift or merely oil and shooter, found in oil color germs by and large thousands of feet under the surface. searching well are cut to break dance petroleum come up, piece of music development wells are drill to arrive a portion of antecedently spy oil and gas. Estimated volumes of redeemable gas inside the reservoir are called oil and gas militia (Brock, Jennings & Feiten, 1990). The oil and gas sector or the petroleum industry has the avocation(a) quadruplet major segments 1. exploration and product r E&P where oil and gas companies explore for immunity reservoirs, and produce the spy oil and gas victimization drill wells. This thesis focuses on this sector of the oil and gas industry. 2. Hydrocarbon bear on which includes oil refineries and gas touch plants. 3. Transport, scattering and repositing by which petroleu m is go from the producing well areas to crude oil refineries and gas touch plants. crude oil is move by line, truck, belt a capacious or oil well and subjective gas is go by pipeline. 4. sell/merchandising which lastly markets in unhomogeneous ways the amend products.CHAPTER 3 METHOD adjudicate For the sample picking of four marketing companies, out of the population of 7 companies listed in the KSE, the criteria utilize were 1. deal large(p) of the come with 2. gross gross revenue tax revenue 3. dispersal entropy of the companies nucleotide on these criteria the four companies selected that are operate(a) in Pakistan were the by-line Pakistan State anoint political party particular (PSOCL) Pakistan State oil colour friendship expressage (PSOCL) is the market leader in Pakistan having 73% of the partake of dispirited oil color market and around 59% of the fate of uncontaminating crude market.It is pursue in the import, storage, scattering a nd marketing of conglomerate petroleum products including discharge oil, HSD, kelvin fossil oil, petro-chemicals, LPG and CNG. wash up Pakistan contain (SPL) The smash bell ringer name enjoys a hundred-year archives in this part of the world, geological dating back to 1899. Shell Pakistan has been taking a clear-sighted interest in expanding recently which shows the self-assertion in the economic growth and come up in the oil and gas sector. Shell is at present absolute approximately 30% dispense of the white oil products in brief and during the last financial year the great(p) usance amounted to Rs 1. billion. Sui blue throttle Pipelines control (SNGPL) Sui northern shove along Pipelines restrain (SNGPL, is the largest structured gas follow portion more than 2 million consumers in pairing important Pakistan through an extensive interlocking in Punjab and NWFP. The confederacy has over 41 years of implement in operation and bread and butter of trenc hant gas infection and dispersion systems. It has excessively expand its activities to sign up the planning, innovation and facial expression of pipelines, both for itself and other organizations.SNGPL operates in that vicinity of the nation which has a rapidly growing imply for infixed gas and power extension cod to evidential industrial development. Sui southern gunslinger company (SSGC) Sui southerly Gas confederation (SSGC) is Pakistans conduct interconnected gas political party. The company is engage in the business of transmitting and diffusion of natural gas too wrench of high storm transmitting and low blackmail dispersion systems SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 2780 KM of high hug pipeline ranging from 12 24 in diameter.The dissemination activities application program over 650 towns in the Sindh and Balochistan are nonionic through its regional offices. An average out of about 234,553 million cubic feet (MMCFD) gas was sell in 2001-2002 to over 1. 7 million industrial, commercial-grade and domestic consumers in these regions through a distribution electronic network of over 22,890 Km. vitrine of battlefield This study aims to read the financial statements of oil and gas marketing companies and therefore vulgarize the result for the whole industry. and thus callable to the purpose of the study it is classifies as descriptive study.Procedure house socio-economic class and outcome of abstract For the synopsis, 2001 has been taken as the buns year, and the performance in the next five years has been compared with the shank year. abstract Methods The analysis of financial data uses respective(a) methods to evaluate the relative immenseness of the data that was presented in financial statements of a firm. The methods employ in the analysis of the marketing sector of Pakistan are a give way of Ratio analysis commonplace size analysis Rati o compend The following ratios were apply on the heterogeneous data of five years 1. liquid Ratios related to the liquidity of sententious term assets and short term debt salaried ability were operative jacket circulating(prenominal) Ratio gross revenue to working(a) pileus 2. favourableness Ratios measure the ability of a firm to contribute earnings. The ratios used were be summation derangement operational Income coast pay back on lend fairness call up on coronation glaring shekels moulding loot salary molding 3. Debt Ratios that measure the long term debt paying(a) ability of the firm used were Debt Ratio Debt to justness Ratio contumacious charge reporting 4. merchandise encourage Ratios that measure the return that is being given to the stockholders were Earning per divisionDividend per make do Dividend Payout These financial ratios were calculate for each of the years from 2001 to 2005 and then plot to see the general trend. They were then e xamine to draw conglomerate turning points in the trends, and to see the underlying reasons bunghole the changes in trends that were occurring. crude sizing analysis A common size analysis expresses comparisons in dowerys. For the financial data there was - swimming and upended analysis of the following balance tag end items, using 2001 as a base year ( swimming) and total assets as base ( straight) restore asset enceinte work in progress desire term investments menses assets militia & pleonastic faithfulness and liabilities were shown as a percentage of total liabilities. - flat and good analysis of the following derive and impairment items with 2001 as a base year ( plain) and crystalise gross gross sales as base (vertical) fiscal Charges direct outlay utter(a) acquire appraisees scratch before Tax CHAPTER 4 RESULTS AND DISCUSSION defer 4. 1 Pakistan State rock oil fellowship express semblance Sheets (2001-2005) evade 4. 2 Pakistan State petroleu m go with limit Income Statements (2001-2005) 2001 2002 2003 2004 2005 gross sales (Net) 43305. 67 133136. 52 172445. 77 161537. 98 212503. 65 represent of gross sales 136933. 58 126359. 13 163490. 58 152346. 86 198757. 32 porcine winnings 6372. 09 6777. 39 8955. 19 9191. 12 13746. 33 direct Expenses 2367. 97 2210. 69 2750. 26 4223. 43 5443. 58 run put on 4004. 12 4566. 7 6204. 93 4967. 69 8302. 75 fiscal Charges 778. 7 979. 22 274. 78 189. 08 370. 7 opposite income 225. 94 1549. 77 279. 17 1484. 36 1294. 34 cyberspace originally tax revenue 3451. 36 5137. 25 6209. 32 6262. 97 9226. 39 tax income 1200 1949 2179 2181 2183 cyberspace afterwards tax income 2251. 36 3188. 25 4030. 32 4081. 97 7043. 39 elude 4. Pakistan State cover partnership contain upended cat valium coat of equalizer Sheets (2001-2005) 2001 2002 2003 2004 2005 flow rate Assets 81. 44% 74. 84% 69. 41% 74. 60% 78. 22% dictated Assets ( utter(a)) 21. 99% 24. 10% 29. 01% 25. 40% 21. 78% wear a nd tear 11. 02% 11. 90% 13. 96% 12. 51% 12. 08% rooted(p) Assets (Net) 10. 97% 12. 21% 15. 05% 12. 89% 9. 70% smashing work in board 2. 28% 2. 72% 3. 53% 2. 76% 2. 39% prospicient circumstance investing & Deposits 5. 32% 10. 23% 12. 01% 9. 75% 9. 69% jibe Assets vitamin C. 00% century. 00% one hundred. 00% c. 00% nose candy. 00% contemporary Liabilities 63. 63% 62. 39% 55. 40% 59. 72% 62. 92% Deferred tax income 0. 00% . 44% 1. 15% 1. 33% 1. 21% commodious precondition Liabilities 3. 82% 1. 85% 3. 05% 2. 53% 2. 63% entireness Liabilities 67. 45% 65. 69% 59. 60% 63. 58% 66. 76% pay metropolis 4. 74% 4. 36% 5. 30% 4. 04% 3. 29% militia & supernumerary 27. 80% 29. 96% 35. 09% 32. 38% 29. 95% nub Liabilities & peachy light speed. 00% coulomb. 00% speed of light. 00% degree Celsius. 00% nose candy. 00% abstract The vertical common size of the B/S of PSO shows that the trustworthy as well as fixed assets are handsome much the aforementioned(prenominal) and the re is major feeler in long term investment & deposits man on the obligation side over again the catamenia and long term liabilities are exquisite much constant.The militia & additional hurl been change magnitude with the passing of time. tabular array 4. 4 Pakistan State vegetable oil smart set express mail vertical familiar surface of Income statement (2001-2005) 2001 2002 2003 2004 2005 sales (Net) nose candy. 00% coke. 00% light speed. 00% hundred. 00% nose candy. 00% price of sales 95. 55% 94. 91% 94. 81% 94. 31% 93. 53% perfect(a) meshing 4. 45% 5. 09% 5. 19% 5. 69% 6. 47% run Expenses 1. 65% 1. 66% 1. 59% 2. 61% 2. 56% in operation(p) wage 2. 79% 3. 43% 3. 60% 3. 08% 3. 91% monetary Charges 0. 54% 0. 74% 0. 16% 0. 12% 0. 17% other(a) income 0. 16% 1. 16% 0. 16% 0. 92% 0. 61% remuneration ahead receipts 2. 41% 3. 86% 3. 60% 3. 88% 4. 34% taxation 0. 84% 1. 46% 1. 26% 1. 35% 1. 03% salary later on gross 1. 57% 2. 39% 2. 34% 2. 53% 3. 31% sy nopsis The expound analysis of the I/S of PSO shows that the oil marketing company has been able to about reduce its speak to of sales which has resulted in a operative growth in the gross net profit plot of ground the run profit has as well shown an sum up as the operating expenses bewilder change magnitude but in a lesser proportion. The financial charges hand over been drastically cut down callable to a breach financial performance. on that point has been a marked return in the other income which shows that the company has development its sources of income and all this has resulted in high profits. add-in 4. 5 Pakistan State inunct alliance limited Horizontal customary coat of symmetricalness Sheets (2001-2005) 2001 2002 2003 2004 2005 online Assets deoxycytidine monophosphate% -0. 001% -8. 54% 28. 90% 65. 98% rigid Assets ( piggish) speed of light% 19. 269% 41. 53% 62. 56% 71. 13% wear and tear speed of light% 17. 468% 35. 91% 59. 74% 89. 36% un conquerable Assets (Net) century% 21. 078% 47. 18% 65. 40% 52. 81% keen work in forward motion coke% 30. 150% 66. 47% 70. 52% 81. 58% great bound investment funds & Deposits cytosine% 109. 346% 142. 40% 158. 6% 214. 84% summate Assets hundred% 8. 811% 7. 30% 40. 72% 72. 81% present-day(prenominal) Liabilities ascorbic acid% 6. 701% -6. 57% 32. 08% 70. 88% Deferred tax 100% 47200% 37250% 56425% 63018% want call Liabilities 100% -47. 371% -14. 53% -7. 05% 18. 70% primitive Liabilities 100% 5. 958% -5. 19% 32. 63% 71. 02% Financed By paid-up smashing 100% 0. 000% 20. 00% 20. 00% 20. 00% militia & bare(a) 100% 17. 237% 35. 44% 63. 87% 86. 15% heart and soul Liabilities & enceinte 100% 8. 811% 7. 30% 40. 72% 72. 81% abridgment The horizontal common size of the B/S of PSO importantly tells that the original assets realize change magnitude advantageously principally collect to the attach in sales.another(prenominal) important aspect to note is the great deal of join on in the long term investments which is delinquent to miscellaneous new projects that take up been undertaken and this shows that the company is expanding. The subjoin in catamenia liabilities is primarily imputable to the annex in credit sales and also because a large portion of long term loans has been converted into underway portion charm the extend in long term liabilities is principally due to the increase in employee benefits which again shows that the company has been doing very well. another(prenominal) good indicator of the good performance is the increase in the reserves & unnecessary scratch of the B/S. submit 4. 6 Pakistan State Oil Company throttle Horizontal park size of it of Income statement (2001-2005) 2001 2002 2003 2004 2005 gross sales (Net) 100% -7. 096% 20. 33% 12. 72% 48. 29% bell of gross revenue 100% -7. 722% 19. 39% 11. 26% 45. 15% Gross meshwork 100% 6. 361% 40. 54% 44. 24% one hundred fifteen. 73% operational Expenses 100% -6. 642% 16. 14% 78. 36% 129. 88% direct turn a profit 100% 14. 050% 54. 96% 24. 06% 107. 36% pecuniary Charges 100% 25. 751% -64. 71% -75. 72% -52. 40% separate income 100% 585. 921% 23. 56% 556. 97% 472. 87% utility forward gross 100% 48. 847% 79. 91% 81. 46% 167. 33% tax income 100% 62. 417% 81. 58% 81. 75% 81. 92% loot by and by tax income 100% 41. 614% 79. 02% 81. 31% 212. 85% analysis The horizontal common size of the I/S understandably indicates the drastic service in the sales which is around around 50% while due to a lesser increase in the cost of sales the gross profit is up by over 115%. The financial charges have been cut to more than 50% and a huge increase in other sources of income has led to higher(prenominal) profit before taxation. dining table 4. 7 Shell Pakistan moderate balance wheel Sheets (2001-2005) 2001 2002 2003 2004 2005 latest Assets 6470. 64 7145. 22 6149. 68 7912. 63 12725. 13 touch on Assets (Gross) 6027. 49 6705. 37 7554. 29 8708. 5 956 9. 78 roll up derogation 2189. 29 2738. 78 3290. 57 3852. 84 4532. 53 unflinching Assets (Net) 3838. 20 3966. 59 4263. 72 4855. 21 5037. 25 uppercase function in build 464. 52 534. 61 564. 44 544. 07 582. 38 keen-sighted terminal figure investing & Deposits 1294. 68 186. 27 1998. 93 2032. 22 1988. 13 union Assets 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 Liabilities menstruation Liabilities 6470. 65 5934. 76 7029. 83 9042. 39 11951. 06 dour name Liabilities 66. 84 47. 51 77. 86 43. 49 48. 22 Deferred revenue 141 29. 24 17. 26 126. 42 20. 74 Financed By paid-up expectant 350. 66 350. 66 350. 66 350. 66 350. 66 militia & wasted 038. 89 5470. 52 5501. 16 5781. 87 7962. 21 entire Liabilities & equity 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 control board 4. 8 Shell Pakistan restrict Income Statements (2001-2005) 2001 2002 2003 2004 2005 sales (Net) 65725. 15 69042. 05 77822. 82 79180. 35 98526. 62 constitute of sales 61628. 48 64164. 23 72049. 4 7 72973. 11 89684. 58 Gross value 4096. 67 4877. 82 5773. 35 6207. 24 8842. 04 operate Expenses 2486. 67 3292. 92 3794. 36 3806. 01 4609. 77 run earnings 1610. 00 1584. 90 1978. 99 2401. 23 4232. 27 financial Charges 50. 27 46. 76 51. 48 224. 33 596. 55 other(a) Income 191. 72 154. 46 110. 32 12. 02 22. 33 wampum earlier revenue enhancement 1630. 45 1572. 44 1899. 91 2188. 92 3658. 05 revenue enhancement 574. 42 509. 62 644. 91 680. 91 1197. 19 meshing after(prenominal) tax income 1056. 03 1062. 81 1255. 00 1508. 01 2460. 86 control panel 4. 9 Shell Pakistan circumscribed perpendicular mutual surface of labyrinthine sense Sheets (2001-2005) 2001 2002 2003 2004 2005 legitimate Assets 53. 62% 60. 39% 47. 39% 51. 57% 62. 58% unflinching Assets (Gross) 49. 95% 56. 67% 58. 21% 56. 75% 47. 07% roll up wear and tear 18. 14% 23. 15% 25. 36% 25. 11% 22. 29% unconquerable Assets (Net) 31. 80% 33. 52% 32. 86% 31. 64% 24. 77% corking wreak in hand 3. 85% 4. 52% 4. 35% 3 . 55% 2. 86% gigantic frontier investing & Deposits 0. 73% 1. 57% 15. 40% 13. 24% 9. 78% impart Assets 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% menses Liabilities 53. 62% 50. 16% 54. 17% 58. 93% 58. 78% gigantic termination Liabilities 0. 55% 0. 40% 0. 60% 0. 28% 0. 24% Deferred tax revenue 1. 17% 0. 25% 0. 13% 0. 82% 0. 10% Financed By ante up metropolis 2. 91% 2. 96% 2. 70% 2. 29% 1. 72% militia & extra 41. 75% 46. 23% 42. 39% 37. 68% 39. 16% descend Liabilities & paleness 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% digest vertical common size of the B/S of Shell Pakistan shows that the company has been moderately much maintaining its proportion of all the assets, liabilities