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WELCOMEWELCOME
TOPIC
ANALYSIS OF FINANCIAL
STATEMENTS OF OGDCL
(2003-2007)
Group Members
Ishtiaq Ahmed Malik
Muhammad Ibrahim Durrani
Khaqan Nawaz
Raheel Ahmad Malik
LAYOUT BUSINESS ANALYSIS
○ Background ○ Demand of Oil and Gas○ Capital Structure○ Growth in Sales○ Earnings & Dividend○ Operating Leverage○ Future Outlook of OGDCL
continued……
LAYOUT
RATIO ANALYSIS
CROSS SECTIONAL ANALYSIS
OGDCL VisionOGDCL Vision To be a leading, regional Pakistani E & P Company, recognized for its To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and performance. people, partnerships and performance. OGDCL Mission OGDCL Mission
Our mission is to become a competitive, dynamic and growing E & P Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing our reserves through world class Company, rapidly enhancing our reserves through world class workforce, best management practices and technology and maximizing workforce, best management practices and technology and maximizing returns to all stakeholders by capturing high value business returns to all stakeholders by capturing high value business opportunities within the country and abroad, while being a responsible opportunities within the country and abroad, while being a responsible corporate citizen. corporate citizen.
Introduction Largest exploration and Production Company. Largest portfolio of net recoverable
hydrocarbon reserves. OGDCL contribution in Natural Gas and Oil. 85 OGDCL operated and non-operated fields
PLUS 8 discoveries under appraisal 38 OGDCL operated fields in production Presence in and knowledge of all 4 provinces 40 development and production leases in
100% owned and operated
Background
Vital Growth in Earth Quake Year
Donations by International Organizations
Energy Overview
Rising Oil Consumption & Flat Oil Production
Lack of Refining capacity High Electricity Demand Oil Sector Overview Natural gas Overview
Demand of Oil and Gas
Demand for oil = 400 thousand barrels a day.
supply of Oil =50 thousand barrels a day
Demand for gas is increasing 70% each year
Capital StructureCapital Structure
•100 % Equity Financed100 % Equity Financed
•Govt of PakistanGovt of Pakistan
•General Public And international investorsGeneral Public And international investors
Growth in 2007 (comparison with 2006)
Net sales increased by 3.67% to Rs 100,261,191 million from Rs. 96,755,382 million..
Net profit before tax decreased by 7.36% to Rs 61,058,726 million from Rs. 65,911,327 million.
Net crude Oil production of 43,434 barrels per day.
Net gas production was 976 MMcf per day. Net LPG production 339 tons per day. Net Sulphur production was 72 tons per day.
Earnings & DividendEarnings & Dividend
The EPS of OGDCL has increased from 4 in 2002 to 10 The EPS of OGDCL has increased from 4 in 2002 to 10 in 2007. in 2007.
Operating LeverageOperating Leverage
OGDCL has high operating leverage as it has high total OGDCL has high operating leverage as it has high total Fixed Expenditures as compare to variable expenditure, Fixed Expenditures as compare to variable expenditure, it gives a magnifying effect.it gives a magnifying effect.
Future Outlook of OGDCL 2007 an Excellent Year.
Operational Achievement.
Committed to Strategies.
RATIO ANALYSIS Current Ratio Quick Ratio Receivable T/O ratio Asset Turnover Ratio Operating Profit margin Net Profit Margin GP Margin ROE ROI
Current Ratio
Years 2003 2004 2005 2006 2007
Current Ratio
6.82 12.17 4.96 6.51 6.16
Quick Ratio
Years 2003 2004 2005 2006 2007
Quick Ratio
5.88 10.32 4.4 5.46 4.97
Receivable turn over ratio
Years 2003 2004 2005 2006 2007
R/A TO Ratio
3.46 3.29 4.65 4.50 3.83
Asset Turn Over Ratio
Years 2003 2004 2005 2006 2007
Asset TO Ratio
56% 57% 70% 82% 80%
Operating Profit Margin
Years 2003 2004 2005 2006 2007
Op.
Profit Margin
54% 57% 63% 64% 57 %
Net Profit Margin
Years 2003 2004 2005 2006 2007
Net Profit Margin
46% 44% 45% 48% 46%
GP Margin
Years 2003 2004 2005 2006 2007
GP Margin
66% 61% 68% 72% 69%
Return on equity
Years 2003 2004 2005 2006 2007
ROE 34% 33% 41% 52% 47%
Return on Investments
Years 2003 2004 2005 2006 2007
ROI 26% 25% 31% 39% 36%
CROSS SECTIONAL ANALYSIS
Current ratio Quick ratio Receivable Turnover Gross profit margin Operating Profit Margin Net Profit Margin Return on Equity Return on Investment Earning per share
THANKSTHANKS
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