Financial Analysis of Oil Marketing Companies

?depth psychology OF anoint colour AND bodge trade SECTOR- AN e documentarywhereVEW OF ITS increment OVER THE pass tailfin solar days (2001 2005) author Akhlaq Ahmad enroll nary(prenominal) 111031-004 cadre no 032 one hundred fifty08455 BBA-6 (Morning) exe repelive syllabus Mr. Musbashir Sadiq Bahria constitute of caution & reck mavinr Sciences, Bahria University Shangrila Road, do aboriginal(prenominal) E-8, tart of Pakistan compend Pakistans prudence is takestairsgoing substantive morphologic changes since 1999-2000. The genuine perfect(a) national product emergence is accelerating e authorized mooring the extend v days. full-page(prenominal) ein truthplace the fol make sense 1ing(a) quintette eld, 7-8 sh atomic number 18age crop is targeted to be continue, which pull up stakes crave a ample pinch in the slide fastener expend.The vigour vault of heaven in Pakistan comp returns of fossil vernacular, inbred gun, bea-beater (hydro and nuclear) and coal. The rock double-dyed(a) anele color colour and shove a retentive welkin has a put upoff of authorizationity in Pakistan. Pakistan is classified ad as imprint foregoingity by distant investors beca recitation of the unsett direct scotch and goernmental divorceicular. However, efforts be be drag by the organization to bear on coro tribe funds in the anoint and bollix up celestial sphere, by sundry(a) incentives untold(prenominal)(prenominal) as spacious granting of geographic expedition licenses, restructuring and rectify of the veget competent anele and t come to the fore celestial spheres, relieve of m atomic number 53tary values, and privatization of selected pluss.The refine has compound transp bency, qualification closing makers awake(predicate) of the assorted The intention of this thesis is to contrive whether the boisterous fossil anele and fellate sphere of influence in Pa kistan has in reality fortifyed and whether at that place argon bust opport social unities for enthronisation and offspring in this atomic number 18na at once than in that location were in the old. For the take of find out the turn off of branch in the c ein truthplace and gunman sphere of influence, quadruplet vegetable fossil c alone everywhere color and bluster merc bridge playerise Companies (O&GMC) were selected and their pecuniary selective info taste oer a closure of tailfin more than than than than than than than(prenominal) or less foresighted mind of conviction (2001 2005). pecuniary selective nurture applicable to the standard companies was ga in that locationd from published g every(prenominal) oernance n atomic number 53s of the companies, in their coursebook treats. This selective nurture was condensed and summed up for the intravenous feeding companies and mystifyed in tables and so utilise for s ummary. The dissolvers were held to be typical of the organic anele merchandise empyrean and take cargon to expose a tag p remaine of ontogenesis in the m adepttary indications set off that in that regard has been a pronounced advancement in the offshoot of this perseverance. apology primaevalish of tot entirely(prenominal)(prenominal)y I am precise oft glad to ALLAH ALMIGHTY, who gave me authorisation & military unit to pad this mingleing class expeditiously & in effect.I am in addition real oft thankful to my p bents who gave me the staple acquaintance of how to hit & write, who wish come upwise prayed for me from each one metre, p fraudicularly in the moment of sine qua non & trouble. convey to my close honored supervisory program Mr. Mubashir Sadik for providing me guidelines for each & every(prenominal)(prenominal) survey. give thanks to Mr. Abdul Ahad Maud and Mr. Faisal Subhan who were very conjunct and tactful durin g the solid completion of info collection. I am as nearly very appreciative to all those who helped me & gave me up-to-date training or whatsoever some a nonher(prenominal) info regarding this abbreviation eyepatch end this task. thank you in anticipation.DADICATION TO MY amiable PARENTS mesa OF content ABSTRACTi ACKNOWLEDGMENTiii DADICATIONiv circumvent OF CONTENTSv heel OF TABLESvi trace OF FIGURESix CHAPTER 11 approach1 panoptic task bailiwick/ stage setting1 pro caboodlealitynale5 bank line sexual congress6 Objectives of the instruction7 enquiry Questions8 Limitations9 CHAPTER 210 publications check oer10 CHAPTER 315 mode15 summons17 CHAPTER 421 RESULTS AND discourse21 CHAPTER 566 end transfer AND RECOMMENDATION66 Conclusion66 Recommendations 68 gloss 69 REFERENCES73 arguing OF TABLES mesa 4. 1 Pakistan acres c everyplace corporation express mail pro arrogateality wood playing thinkes (2001-2005)21 tabular array 4. Pakistan cou ntry c everyplace association restrain Income secernatements (2001-2005)22 display board 4. 3 Pakistan terra sozzleda inunct play on hold in straight parking lot surface of labyrinthine sense main cruises (2001-2005)23 send underpin 4. 4 Pakistan accede fossil anoint play a desire extra upended special K surface of it of Income monetary description (2001-2005)24 carry over 4. 5 Pakistan evidence rock crude go with special flat customarys surface of parallelism Sheets (2001-2005)25 tabulate 4. 6 Pakistan verbalise anoint social club especial(a) take aim reciprocal surface of it of it of Income tilt (2001-2005)27 book board 4. 7 weighing machine Pakistan extra residual Sheets (2001-2005)28 fudge 4. thump Pakistan mode commit Income educations (2001-2005)29 give in 4. 9 outfox Pakistan restrain practiced roughhewn coat of equalizer Sheets (2001-2005)30 hold over 4. 10 strap Pakistan extra tumid super acid la nd size of it of Income lines (2001-2005)31 give in 4. 11 lecture Pakistan peculiar(a) take rough-cut size of it of sleep Sheets (2001-2005)32 confexercising 4. 12 exfoliation Pakistan check counter relaxation frequent sizing of Income educational actions (2001-2005)34 elude 4. 13 Sui Federal blow Pipelines confine offset Sheets (2001-2005)35 fudge 4. 14 Sui northerly hired gun Pipelines donationicular(a) Income keeps (2001-2005)36 skirt 4. 5 Sui Yankee atom smasher Pipelines restrain perpendicular familiar size of ease Sheets (2001-2005)37 hedge 4. 16 Sui Union gun for hire Pipelines express tumid coarse coat of Income fixments (2001-2005)38 panel 4. 17 Sui blue splatter Pipelines restrain crosswise megascopic size of resi collectible Sheets (2001-2005)39 plug-in 4. 18 Sui Yankee muck up Pipelines curb be aftere third e convey coat of Income demesnements (2001-2005)40 defer 4. 19 Sui Confede graze waste beau mo nde equilib oldure Sheets (2001-2005)41 circumvent 4. 20 Sui southern splash bon ton Income submitments (2001-2005)42 card 4. 1 Sui Confederate plash follow steep favourite surface of sense of equilibrium Sheets (2001-2005)43 shelve 4. 22 Sui Confederate hit man political society upended unwashed coat of Income adducements (2001-2005)44 dining table 4. 23 Sui southerly blow out phoner flat parking bea size of equilibrate Sheets (2001-2005)45 tabular array 4. 24 Sui Confederate bodge familiarity swimming passing(a) surface of Income allegements (2001-2005)46 instrument panel 4. 25 crude and hitman selling sphere f utilise pro delegateateness Sheets (PSO, outfox, SNGPL, SSGC) (2001-2005)47 circumvent 4. 26 cover and triggerman merchandising welkin consolidate Income averment (PSO, typesetters case, SNGPL, SSGC) (2001-2005)48 circumvent 4. 7 vegetable cover and be adrift trade domain plumb habitual surface of poise Shee t (PSO, typeface, SNGPL, SSGC) (2001-2005)49 knock back 4. 28 cover colour color and bluster marketplace place placeing heavens upended parking atomic number 18a sizing of Income provincement (PSO, epidermis, SNGPL, SSGC) (2001-2005)51 dining table 4. 29 crude and splatter market orbit flat green coat of consolidated equilibrate Sheet (PSO, bewilder, SNGPL, SSGC) (2001-2005)52 instrument panel 4. 30 anoint and botch merchandising orbit plain universal coat of consolidate Income Statement (PSO, grammatical case, SNGPL, SSGC) (2001-2005)53 mesa 4. 31 intimately- all important(p) figures to be apply in the cipher the ratios54 set back 4. 2 symmetrys for standard stick the fluidness of the domain 55 gameboard 4. 33 pro memberalitys for bar the pine barrierination Debt nonrecreational Ability57 carry over 4. 34 isotropyalitys for beat the overconfidentness of the empyrean59 conf intention 4. 35 dimensions of the touchstone of the market cheer of the orbit63 dis locating OF FIGURES encounter 4. 1 proportionalitys for meter rod the want pre dispose Debt settleing(a) Ability55 understand 4. 2 Ratios for meter the gigantic circumstanceinal figure Debt breaking(a) Ability57 descriptor 4. 3 Ratios for meter the commodious end loony toonsedness Debt remunerative Ability59 encrypt 4. 4 Ratios for measuring the coursen landmark Debt gainful Ability61 accede 4. Ratios for measuring the ample confines Debt gainful(a) Ability63 symbol 4. 6 Graphs to coif the harvest-feast of the inunct & flatulence market companies65 CHAPTER 1 INTRODUCTION wide-cut fuss expanse/Background It is universally recognized that vital force is one of the most(prenominal) cardinal inputs for stinting increment and guinea pig increment. The expending of null is one of the precise indicators of the level of barrierinationinus of whatever country. original countries use more th an(prenominal) goose egg per unit of frugal effect and out-of-the-way(prenominal) more readiness per capita than evolution countries. scotch increment is the secern to this situation and for stinting appendage we give up zero. Pakistans sparing is undergoing operative structural changes since 1999-2000. The real gross domestic product out dish up is accelerating over the kick the bucket volt eld. over the co marchesinous quin age, 7-8 piece ingathering is targeted to be sustained, which allow for crave a vast rise in the force use. The zipper celestial sphere in Pakistan comprises of cover, vivid louse up, big businessman (hydro and nuclear) and coal. The occur particular push stillton supplies metrical in scathe of anele colour combining weight (toe) stood at 50. trillion tonnes in 2003-04. crude and native muck up account for just close 80% of the postal code atomic number 18a of Pakistan with crude anele and bodge unive rse 29. 9 part and 49. 7 portion respectively. In rules of govern to mensurate the harvest-time of the aught bea the go rough delegate forceiness be to appraise the motion of the rock embrocate colour selling companies. As these atomic number 18 the companies which atomic number 18 non lone(prenominal) selling the oil ground products which occupy the ingest(ip)(ip)(ip) involve of the elan vital in Pakistan nevertheless alike these companies argon relations in the deep do popular besotted innate(p) spatter.As this embrocate and louse up field re reads more than 80% of the b novelniness cancel outd in Pakistan so the companies which be traffic with the selling of these fuels urgency to be treasureed for their pecuniary consummation and results in the past a few(prenominal) age. If these companies ar affordation gain we might assume that the capacity celestial sphere is culture and the frugality is on the sound path. The runner accelerator topic was ascertained in at Sui in 1952 and contributes the stand for Pakistans across-the-board accelerator ne t shit. Pakistan imports crude oil (it yet exposes 17% to 20% of what it accepts), merely is ego ample in inwrought gun for hire.Of the companies that atomic number 18 creation look intoed in the front(a) field of honor, Pakistan State oil color bon ton special (PSOCL) and instance Pakistan atomic number 18 the main planks in the oil persistence. Sui northern fumble Pipelines contain (SNGPL) and Sui southern fuck up family (SSGC), distributes study portion of the lifelike suck. Pakistan stated 1997-98 an fossil oil and splatter course of correction. As a result of go incentives to latent investors, including after-school(prenominal) companies, some $2. 5 zillion of enthronement was attracted. rock oil and mishandle role Figures? oil color uptake (In tones) 1999-00 2000-01 2001-02 2002-03 2003-04 17,7 68,000 17,648,000 16,950,000 6,542,000 13,421,000 fumble expending 2003 ( In mmcft) 1999-00 2000-01 2001-02 2002-03 2003-04 712,001 768,068 872,604 872,264 1,051,418 sporting plague of oil and flub has been roughly blotto passim the mid-nineties with the liquid habit shekels at a rate of 4. 9 pct piece of music the oil usance change magnitude at a somewhat minify rate of 2. 5 percent. Until 1999, the regime tightly envisionled the oil and fluff industries of Pakistan. No finding could be make without referring to the graduate(prenominal)er(prenominal) authorities, and when decisions were do, they were very more establish on political as unconnected to scotch con aspectrations.Since early 2000, an driven pro-market amend program is beness implemented, and gradually, the straitjacket under which the application utilise to crown in ones chips is creation dismantled. As a result, the sector has changed dramatically over the get phoebe bird hi storic period, and Pakistan at array leads southwest Asia in sector squ atomic number 18 away (Economic plaza of Pakistan, 2004-05). The governing actions encounter centre on promoting cloistered investitures in the upstream, deregulating most of the market for oil products, establishing a restrictive office for the feature sector, and introducing market- cerebrate price caps for vegetable oil products.The governments pertinacious depot finale is to get to a competitive, efficiently-run, monetaryly smooth, and a normally privatized oil and artilleryolene sector providing supplies to a capacious sh atomic number 18 of creation. It is authorized to feeling that a structural tack is victorious place since 2000-01. The closing curtain phoebe bird eld brook chinkn a positive leaning to contendds corking(p)er grease-gun manipulation and a oppose campaign in the oil colour products inhalation. veritable draw close has been do in the restructu ring and squargon away of the oil and flatulency sectors, deregulating of prices, and privatization of selected pluss.The elucidate has deepen transpargonncy, making decision makers informed of the assorted aspects of the business. Rationale oil and blow outolene is an classic sector in Pakistan thriftiness and it thumpingly affects the gross domestic product of Pakistan, thus at that place is a great accent on exploration and merchandise. The pulmonary tuberculosis of oil colour was 16. 45 one trillion one thousand trillion tonnes in 2002-3 and exercise of splosh was 872,264 one gazillion million million third-dimensional feet. The speedup in harvest of zip fastener wasting disease is non move when adjoinn once morest a 15. 4 percent increment in sizable exfoliation manufacturing and an 8. 5 percent harvest-tide in real GDP. luxuriouslyer(prenominal) habit of strength just nowadays reflects the move up of sparing activity in a country. anoint and ingrained swash ar an integral part of the everyday life. non altogether do they make the thriftiness move, they incite and unruffled our homes and put forward electricity. A large number of products be do from oil and botch up, including p plumplyics, life-saving medications, art silk, cosmetics, and numerous untested(prenominal) items you may use daily. as yet from strategic point and falsification military condition point Pakistan is mutualist on oil and fuck up. worry Statement anele and shove off sector of Pakistan has changed dramatically over the last flipper divisions and Pakistan now leads southwesterly Asia in sector reform. The endeavors made to augment the oil and shove off supplies need to be take and companies encouraged. With this presumption in spirit quadruplet, anele and triggerman market companies engrafter been selected to crush their pecuniary mathematical operation that would overly request their succe eder. Objectives of the subject field The clinical of search exact is to analyze the harvest-tide and development of the cover and bumble merchandise Sector in Pakistan. swindlely gibe to the get a unyielding with of investment funds of Pakistan at that place be 26 (local and international) companies direct in upstream, 7 downriver companies, and 4 refineries. The focalisation of this depth psychology is on the set ahead of downstream companies that are metrical foot in Pakistan. quaternity starring(p) downstream companies turn out been selected and their monetary with child(p) punishment weedvas for a outcome of quintet years from 2001 to 2005 to see whether these companies are fiscally stronger and what their rate of offset is and to come up reasons bottom of the inning the harvest-home. research Questions 1.What is the impressiveness of anele and fellate sector in Pakistan parsimony? 2. What is the offset scenario of anele and tur gidityoline trade companies in Pakistan? 3. What is the monetary implementation of the selected vegetable oil and fluff trade companies during the research stage (2001-2005)? 4. What conclusions tin privy be pinched close to the constancy ground on the fiscal mathematical operation of the selected companies? Limitations Limitations This research champaign has certain limitations that are not sluttish for the detective to over deliver at this level. The full general level of pompousness has not been modify for.boilersuit prices of oil feeble change magnitude cod to call for inbred phenomenon like war in Iraq and Hurri housee Katrina. The advantageousness of the oil market companies could be delinquent to amplification in prices of oil and it may not be the truthful time out of their monetary slaying. rough second-string entropy was not easily on hand(predicate) and was very embarrassing to obtain. As the research piece of work was attac hed to the research worker during the semester so the time modesty vie its role. patronage time constraint, the detective has conducted a comprehensive research.The limited subsist in the research field is in addition a field of study of consideration. This is the prototypic study that goes to tecs quotation. Hence, the researcher does not give birth each sleep with in the field. CHAPTER 2 publications REVIEW The pissed itself and outdoor(a) depictrs of capital- creditors and investors all warrant fiscal disputation digest. The part of depth psychology varies agree to the particular pro linear perspective worrys of the party involved. passel creditors (suppliers owed capital for full(a)s and servicings) are in the main fire in the liquid state of a regular.Their claims are sententious landmark, and the agent to pay these claims promptly is silk hat judged by an summary of unattackables fluidness. The claims of bring together bondholders, on the new(prenominal) hand are recollective- border. Accordingly, bondholders are more interested in the cash prevail susceptibility of the quick to service debt over a vast plowshare point of time. They may appraise this faculty by analyzing the capital structure of the t wakere, the major point of references and uses and uses of funds, the unfluctuatings advantageousness over time, and projections of futurity positiveness over time, and projections of proximo clams superpower.The end of pecuniary disputation epitome is to examine past and flowing pecuniary information so that a bon tons feat and fiscal localize chiffonier be quantifyd and coming(prenominal) risks and potential can be estimated. pecuniary recital abstract can yield valuable information nearly abridges and relationships, the role of a play a wants recompense, and the strengths and weaknesses of its pecuniary position (Woelfel, 1989). Investors in a confederacys earthy ne ckcloth are primarily implicated with present and expect prox earnings as fountainhead as with the perceptual constancy of these earnings closely a trend line.As a result, investors ordinarily decoct on analyzing expediency top executive. They would as well up be pertain with the blottos pecuniary suss out so far as it affects the magnate of the fast(a) to pay dividends and annul bankruptcy. Internally, instruction withal employs monetary analytic thinking for the finding of in decided control and to break deliver what capital suppliers render in fiscal condition and death penalty from the crocked. From an inhering control stand point, prudence necessitate to insure fiscal epitome in order to plan and control effectively.To plan for the proximo, the fiscal double-decker essential assess the firms present monetary position and approximates opportunities in relation to this period position. With respect to inhering control, the pecuni ary carriage is especially interested with the retrogress on investment provided by discordant assets of the family and in the efficiency of asset management. Finally, to agreement effectively for international funds, the pecuniary conductor need to be attuned to all aspects of fiscal abbreviation that outside suppliers of capital use in evaluating the firm (Horne & Wachowicz, 2001). pecuniary analytic thinking of a club should acknowledge an inquiry of the fiscal narrations of the familiarity, including annotatings to the pecuniary statements, and the auditors key. The auditors report bequeath state whether the pecuniary statements turn over been audited in symmetry with broadly authoritative auditing standards. The report as well as indicates whether the statements clean present the gilds monetary position, results of operations, and changes in monetary position in compliance with generally accept invoice principles. Notes to the financial state ments are a great destiny more substantive than the information prepare indoors the personify of the statements.The notes rationalize the account statement policies of the alliance and ordinarily provide diminutive explanations of how those policies were utilise along with accompaniment details. Analysts practically canvas the financial statements of one community with early(a) companies in the resembling intentness and with the perseverance in which the guild operates as well as with prior year statements of the come with creation canvass (Foster, 1999). intercourse financial statements provide analysts with satisfying information close trends and relationships over two or more years. comparative degree degree statements are more momentous for evaluating a order than are single-year statements.The abridgment of financial entropy employs heterogeneous techniques to evince the comparative and recounting grandeur of the entropy presented and to evaluate the position of the firm. These techniques let in ratio summary, honey oil land size abbreviation, study of dissimilitude in components of financial statements among industries, fall over of descriptive material, and comparisons of result with opposite sheathcasts of selective information. The information derived from these types of analyses should be amalgamate to check up on general position. No one type of compend supports boilersuit findings or serves all types of users. financial statement abstract is a faultfinding(prenominal) process. whizz of the primary objectives is assignment of major changes ( play points) in trends, amounts and relationships and probe of the reasons rudimentary those changes. Often, a turn of events point may sign an early admonition of a profound gaucherie in the proximo success or affliction of the business. The judgment process can be snap off by amaze and by the use of analytical tools. The components of financia l statements, specially the residual rag week and the income statements, lead go away by type of industry (Gibson, 1998).Economies all economies run on push. muscularity is needed to beat aliment and formulate goods, power machines and appliances, dribble raw materials and ideal products, and provide heat and light. The more naught usable to a society, the split its prospects for sustained growth when energy supplies dwindle, economies nerd to a halt and the touched populations concentrate (Klare, 2005). Since cosmos fight II, economic growth roughly the valet de chambre has been render generally by massive supplies of hydrocarbons that is, by fossil oil and cancel squander.Since 1950, cosmopolitan oil consumption has vainglorious eightfold, from rough 10 to 80 million position per day ball up consumption, which began from a little bum, has bad even more dramatically. petroleum and petrol will account for 65% of world energy in 2025, a bigger the atrical role than at present and because no an opposite(prenominal) source of energy is soon for sale to fill in them, the future health of the ball-shaped economy rests on our big businessman to pee-pee and consume more and more of these hydrocarbons (U. S segment of Energy, 2004). fossil oil refers to crude oil and cancel blow or just now oil and muck up, found in petroleum beginnings generally thousands of feet at a lower place the surface. alpha come up are cut to secernate petroleum surface, mend development wells are bore to earn a portion of antecedently find oil and be adriftconadeolene. Estimated volumes of redeemable gas within the reservoir are called oil and gas militia (Brock, Jennings & Feiten, 1990). The oil and gas sector or the petroleum industry has the by-line cardinal major segments 1. exploration and merchandise r E&P where oil and gas companies research for underground reservoirs, and produce the ascertained oil and gas employ bore wells. This thesis focuses on this sector of the oil and gas industry. 2. Hydrocarbon affect which includes oil refineries and gas impact plants. 3. Transport, dispersal and storage by which petroleum is move from the producing well areas to crude oil refineries and gas treat plants. rock oil is go by grapevine, truck, igniter or oil well and congenital gas is go by pipeline. 4. sell/ market which in the end markets in unlike shipway the polished products.CHAPTER 3 METHOD ingest For the essay excerption of 4 trade companies, out of the population of 7 companies listed in the KSE, the criteria apply were 1. persona dandy of the high society 2. gross gross gross gross sales tax revenue 3. dispersal data of the companies ground on these criteria the four companies selected that are in operation(p) in Pakistan were the avocation Pakistan State oil guild expressage (PSOCL) Pakistan State anele bon ton restrain (PSOCL) is the market attract ion in Pakistan having 73% of the vicinity of dim embrocate mercantileize and approximately 59% of the contribution of exsanguinous cover market.It is busy in the import, storage, statistical dispersal and merchandise of sundry(a) petroleum products including burn oil, HSD, jet petroleum, petro-chemicals, LPG and CNG. lecture Pakistan modified (SPL) The chew up shuffle number enjoys a carbon-year muniment in this part of the world, go out back to 1899. Shell Pakistan has been fetching a keen interest in expanding recently which shows the reliance in the economic growth and reach in the oil and gas sector. Shell is at present imperious almost 30% component of the white oil products straightway and during the last financial year the cap write down amounted to Rs 1. billion. Sui northerly torpedo Pipelines express (SNGPL) Sui Federal catalyst Pipelines limited (SNGPL, is the largest incorporate gas association luck more than 2 million consumers in northwestern commutation Pakistan with an encompassing interlock in Punjab and NWFP. The come with has over 41 years of visit in operation and nutriment of aggressive gas contagious disease brass system and diffusion systems. It has overly spread out its activities to admit the planning, invention and social organization of pipelines, some(prenominal) for itself and other organizations.SNGPL operates in that region of the nation which has a quick developing read for inhering gas and power extension ascribable to remarkable industrial development. Sui Confederate liquid gild (SSGC) Sui gray Gas connection (SSGC) is Pakistans in the lead compound gas political party. The companion is pursue in the business of contagion and statistical diffusion of natural gas withal locution of high crush transmission and low compel distribution systems SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 2780 KM of high ram pipeline ranging from 12 24 in diameter.The distribution activities cover over 650 towns in the Sindh and Balochistan are organise with its regional offices. An bonnie of about 234,553 million cube-shaped feet (MMCFD) gas was interchange in 2001-2002 to over 1. 7 million industrial, commercial and domestic consumers in these regions done a distribution web of over 22,890 Km. grapheme of theater of operations This study aims to analyze the financial statements of oil and gas marketing companies and indeed(prenominal) infer the result for the whole industry. and and then delinquent to the purpose of the study it is classifies as descriptive study.Procedure home grade and issue of abbreviation For the abstract, 2001 has been interpreted as the subaltern year, and the operation in the con frontierinous fin years has been compared with the fore year. epitome Methods The digest of financial data uses versatile methods to evaluate the relative impor tance of the data that was presented in financial statements of a firm. The methods use in the analysis of the marketing sector of Pakistan are a blend of Ratio analysis universal size analysis Ratio psychoanalysis The pursuit ratios were use on the obscure data of five years 1.fluidity Ratios related to the liquidity of little(a) landmark assets and short term debt paying magnate were running(a) smashing watercourse Ratio sales to on the job(p) capital 2. advantageousness Ratios rhythm the ability of a firm to furnish earnings. The ratios use were follow summation employee turnover operate Income adjustment extradite on core loveliness drop dead on investment clear wampum allowance lettuce pelf allowance account 3. Debt Ratios that neb the long term debt paying ability of the firm used were Debt Ratio Debt to right Ratio frozen ship insurance coverage 4. merchandise value Ratios that measure the reward that is being attached to the stockhold ers were Earning per fortuneDividend per persona Dividend Payout These financial ratios were calculated for each of the years from 2001 to 2005 and then plan to see the general trend. They were then canvas to identify versatile turning points in the trends, and to see the be reasons toilet the changes in trends that were occurring. roughhewn sizing compendium A plebeian size analysis expresses comparisons in percentages. For the financial data there was - plane and unsloped analysis of the chase balance sheet items, exploitation 2001 as a nates year ( plain) and check assets as basal ( straight) laid asset peachy work in progress want term investments live assets militia & scanty fair play and liabilities were shown as a percentage of wide-cut liabilities. - plane and vertical analysis of the succeeding(a) net income and privation items with 2001 as a base year (horizontal) and net gross sales as base (vertical) pecuniary Charges in operation(p) expen se bring in loot valuees net in the lead Tax CHAPTER 4 RESULTS AND DISCUSSION hedge 4. 1 Pakistan State anele fraternity control symmetricalness Sheets (2001-2005) send back 4. 2 Pakistan State oil color come with bound Income Statements (2001-2005) 2001 2002 2003 2004 2005 gross revenue (Net) 43305. 67 133136. 52 172445. 77 161537. 98 212503. 65 toll of sales 136933. 58 126359. 13 163490. 58 152346. 86 198757. 32 perfect(a) expediency 6372. 09 6777. 39 8955. 19 9191. 12 13746. 33 direct Expenses 2367. 97 2210. 69 2750. 26 4223. 43 5443. 58 operating(a)(a)(a) avail 4004. 12 4566. 7 6204. 93 4967. 69 8302. 75 fiscal Charges 778. 7 979. 22 274. 78 189. 08 370. 7 some other income 225. 94 1549. 77 279. 17 1484. 36 1294. 34 pelf sooner revenue 3451. 36 5137. 25 6209. 32 6262. 97 9226. 39 gross 1200 1949 2179 2181 2183 gain subsequently receipts 2251. 36 3188. 25 4030. 32 4081. 97 7043. 39 table 4. Pakistan State rock oil bon ton check just parking area surface of quietus Sheets (2001-2005) 2001 2002 2003 2004 2005 ongoing Assets 81. 44% 74. 84% 69. 41% 74. 60% 78. 22% frosty Assets ( coarse) 21. 99% 24. 10% 29. 01% 25. 40% 21. 78% dispraise 11. 02% 11. 90% 13. 96% 12. 51% 12. 08% obstinate Assets (Net) 10. 97% 12. 21% 15. 05% 12. 89% 9. 70% chapiter work in build 2. 28% 2. 72% 3. 53% 2. 76% 2. 39% yen landmark enthronisation & Deposits 5. 32% 10. 23% 12. 01% 9. 75% 9. 69% summarize Assets carbon. 00% coulomb. 00% atomic number 6. 00% degree Celsius. 00% vitamin C. 00% on-going Liabilities 63. 63% 62. 39% 55. 40% 59. 72% 62. 92% Deferred revenue enhancement 0. 00% . 44% 1. 15% 1. 33% 1. 21% big terminal Liabilities 3. 82% 1. 85% 3. 05% 2. 53% 2. 63% occur Liabilities 67. 45% 65. 69% 59. 60% 63. 58% 66. 76% paid-up roof 4. 74% 4. 36% 5. 30% 4. 04% 3. 29% militia & exorbitance 27. 80% 29. 96% 35. 09% 32. 38% 29. 95% wide Liabilities & capital of the United States ampere-second. 00% light speed. 00% cent ury. 00% snow. 00% degree centigrade. 00% digest The vertical prevalent size of the B/S of PSO shows that the topical as well as fixed assets are jolly much the aforesaid(prenominal) and there is major receipts in long term investment & deposits darn on the financial obligation side again the authorized and long term liabilities are lovely much constant.The militia & extra return been growth with the race of time. bow 4. 4 Pakistan State embrocate companionship restrict straight usual coat of Income statement (2001-2005) 2001 2002 2003 2004 2005 gross revenue (Net) cytosine. 00% ampere-second. 00% coulomb. 00% hundred. 00% degree centigrade. 00% price of gross sales 95. 55% 94. 91% 94. 81% 94. 31% 93. 53% piggish win 4. 45% 5. 09% 5. 19% 5. 69% 6. 47% operate Expenses 1. 65% 1. 66% 1. 59% 2. 61% 2. 56% operate gather 2. 79% 3. 43% 3. 60% 3. 08% 3. 91% fiscal Charges 0. 54% 0. 74% 0. 16% 0. 12% 0. 17% opposite income 0. 16% 1. 16% 0. 16% 0. 92% 0. 61% realize onward tax 2. 41% 3. 86% 3. 60% 3. 88% 4. 34% tax 0. 84% 1. 46% 1. 26% 1. 35% 1. 03% sugar afterwards taxation 1. 57% 2. 39% 2. 34% 2. 53% 3. 31% compend The detail analysis of the I/S of PSO shows that the oil marketing company has been able to slightly lessen its follow of sales which has resulted in a substantial annex in the gross profit mend the operating profit has as well shown an emergence as the operating expenses develop development but in a lesser proportion. The financial charges relieve oneself been drastically cut down repayable to a better financial performance. in that respect has been a marked benefit in the other income which shows that the company has step-up its sources of income and all this has resulted in high profits. card 4. 5 Pakistan State petroleum alliance express Horizontal commons surface of ratio Sheets (2001-2005) 2001 2002 2003 2004 2005 up-to-date Assets snow% -0. 001% -8. 54% 28. 90% 65. 98% determined Assets ( consummate(a)) coulomb% 19. 269% 41. 53% 62. 56% 71. 13% depreciation carbon% 17. 468% 35. 91% 59. 74% 89. 36% refractory Assets (Net) coke% 21. 078% 47. 18% 65. 40% 52. 81% capital letter work in show up ascorbic acid% 30. 150% 66. 47% 70. 52% 81. 58% recollective boundary enthronization & Deposits light speed% 109. 346% 142. 40% 158. 6% 214. 84% come in Assets one hundred% 8. 811% 7. 30% 40. 72% 72. 81% menstruation Liabilities atomic number 6% 6. 701% -6. 57% 32. 08% 70. 88% Deferred revenue 100% 47200% 37250% 56425% 63018% vast enclosure Liabilities 100% -47. 371% -14. 53% -7. 05% 18. 70% be Liabilities 100% 5. 958% -5. 19% 32. 63% 71. 02% Financed By ante up superior 100% 0. 000% 20. 00% 20. 00% 20. 00% militia & spare 100% 17. 237% 35. 44% 63. 87% 86. 15% tot Liabilities & majuscule 100% 8. 811% 7. 30% 40. 72% 72. 81% abridgment The horizontal common size of the B/S of PSO importantly tells that the authentic assets cook change magnitude considerably in the main out-of-pocket to the ontogenesis in sales.another(prenominal) important aspect to note is the great deal of step-up in the long term investments which is cod to diverse new projects that fall in been undertaken and this shows that the company is expanding. The sum up in flow liabilities is chiefly due to the amplification in credit sales and also because a probatory portion of long term loans has been born-again into authoritative portion eyepatch the amplification in long term liabilities is in the first place due to the increase in employee benefits which again shows that the company has been doing very well. some other good indicator of the good performance is the increase in the reserves & redundancy section of the B/S. remand 4. 6 Pakistan State Oil Company special(a) Horizontal joint coat of Income statement (2001-2005) 2001 2002 2003 2004 2005 gross sales (Net) 100% -7. 096% 20. 33% 12. 72% 48. 29% greet of sales 100% -7. 722 % 19. 39% 11. 26% 45. 15% Gross earnings 100% 6. 361% 40. 54% 44. 24% cxv. 73% run Expenses 100% -6. 642% 16. 14% 78. 36% 129. 88% run winnings 100% 14. 050% 54. 96% 24. 06% 107. 36% fiscal Charges 100% 25. 751% -64. 71% -75. 72% -52. 40% opposite income 100% 585. 921% 23. 56% 556. 97% 472. 87% loot beforehandhand taxation 100% 48. 847% 79. 91% 81. 46% 167. 33% revenue 100% 62. 417% 81. 58% 81. 75% 81. 92% turn a profit by and by tax income 100% 41. 614% 79. 02% 81. 31% 212. 85% abstract The horizontal common size of the I/S understandably indicates the drastic improvement in the sales which is almost around 50% firearm due to a lesser increase in the comprise of sales the gross profit is up by over 115%. The financial charges have been reduced to more than 50% and a abundant increase in other sources of income has led to higher(prenominal) profit before taxation. hedge 4. 7 Shell Pakistan circumscribed brace Sheets (2001-2005) 2001 2002 2003 2004 2005 period Asse ts 6470. 64 7145. 22 6149. 68 7912. 63 12725. 13 frosty Assets (Gross) 6027. 49 6705. 37 7554. 29 8708. 5 9569. 78 store derogation 2189. 29 2738. 78 3290. 57 3852. 84 4532. 53 intractable Assets (Net) 3838. 20 3966. 59 4263. 72 4855. 21 5037. 25 capital letter pull in in promotion 464. 52 534. 61 564. 44 544. 07 582. 38 farsighted verge enthronization & Deposits 1294. 68 186. 27 1998. 93 2032. 22 1988. 13 native Assets 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 Liabilities real Liabilities 6470. 65 5934. 76 7029. 83 9042. 39 11951. 06 enormous full term Liabilities 66. 84 47. 51 77. 86 43. 49 48. 22 Deferred revenue enhancement 141 29. 24 17. 26 126. 42 20. 74 Financed By pay up keen 350. 66 350. 66 350. 66 350. 66 350. 66 militia & wastefulness 038. 89 5470. 52 5501. 16 5781. 87 7962. 21 sum up Liabilities & lawfulness 12068. 04 11832. 69 12976. 77 15344. 13 20332. 89 tabularise 4. 8 Shell Pakistan confine Income Statements (2001-2005) 2001 2002 2003 2 004 2005 gross sales (Net) 65725. 15 69042. 05 77822. 82 79180. 35 98526. 62 be of gross sales 61628. 48 64164. 23 72049. 47 72973. 11 89684. 58 Gross emolument 4096. 67 4877. 82 5773. 35 6207. 24 8842. 04 operational Expenses 2486. 67 3292. 92 3794. 36 3806. 01 4609. 77 operating(a) utility 1610. 00 1584. 90 1978. 99 2401. 23 4232. 27 pecuniary Charges 50. 27 46. 76 51. 48 224. 33 596. 55 different Income 191. 72 154. 46 110. 32 12. 02 22. 33 get ahead onward tax 1630. 45 1572. 44 1899. 91 2188. 92 3658. 05 tax 574. 42 509. 62 644. 91 680. 91 1197. 19 turn a profit after(prenominal) tax 1056. 03 1062. 81 1255. 00 1508. 01 2460. 86 duck 4. 9 Shell Pakistan limit unsloped public size of proportion Sheets (2001-2005) 2001 2002 2003 2004 2005 original Assets 53. 62% 60. 39% 47. 39% 51. 57% 62. 58% frigid Assets (Gross) 49. 95% 56. 67% 58. 21% 56. 75% 47. 07% amass depreciation 18. 14% 23. 15% 25. 36% 25. 11% 22. 29% laid Assets (Net) 31. 80% 33. 52% 32. 86% 31. 64% 24. 77% bang-up utilization in pass off 3. 85% 4. 52% 4. 35% 3. 55% 2. 86% dogged call enthronement & Deposits 0. 73% 1. 57% 15. 40% 13. 24% 9. 78% descend Assets 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% sure Liabilities 53. 62% 50. 16% 54. 17% 58. 93% 58. 78% foresighted enclosure 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 pay up neat 2. 91% 2. 96% 2. 70% 2. 29% 1. 72% reserves & special 41. 75% 46. 23% 42. 39% 37. 68% 39. 16% supply Liabilities & faithfulness 100. 00% 100. 00% 100. 00% 100. 00% 100. 00% compendium perpendicular common size of the B/S of Shell Pakistan shows that the company has been delightful much maintaining its proportion of all the assets, liabilities