7/28/2019 RATIOS Pakistan Petroleum Limited

http://slidepdf.com/reader/full/ratios-pakistan-petroleum-limited 1/1

Analysis of Financial StatementsPAKISTAN PETROLEUM LIMITEDINTRODUCTION

Pakistan Petroleum Ltd is Pakistan's Premier E&P company, the oldest and largestExploration and Production

Company in the country was incorporated on 5th June 1950subsequent to the promulgation of the Pakistan

Petroleum Production Rules, 1949 withthe main objective of conducting exploration, development and production of

Pakistan'soil and natural gas resources. PPL inherited all the assets and liabilities of the Burmah OilCompany(Pakistan Concessions) Limited and commenced business on 1st July 1952.

PPL and its ex-parent Burmah Oil Company have been active in the subcontinent sincethe early part of the 20th

century. A total of 239 wells including 65 exploratory and 174appraisal / development wells have so far been drilled

which resulted in the discovery ofabout 19.90 Tcf gas (both operated and non-operated leases). A gas condensate/oil

field atAdhi with original recoverable reserves of 1,253 MT liquefied Petroleum Gas and 39.4MMbbl of oil/condensatewas also discovered by PPL.

The Company also operates a Baryte mine in Balochistan province. It produces oil welldrilling grade Baryte powder

from the mine, which has proven reserves of 1.25 milliontones. For the year 2004-05, PPL's share of average

production from its operated andnon-operated fields was 953 MMcfd of gas, 1,372 bpd of oil/NGL and 26 tones per

dayof LPG. Production of gas from these fields meets about 25.1% of the country'sindigenous production. The gas,

LPG and NGL production from PPL operated and non-operated fields for the year 2004-05 in terms of oil equivalent,

was about 171,205 barrels of crude oil per day.

The Company has a staff of about 2520 as at 31 May, 2006 employees with about 431qualified technical staff in the

fields of engineering, computer and earth sciences. PPLhas well established IT department and all staff in the Head

Office has access tocomputers and are interconnected through Local Area Network (LAN). The Wide AreaNetwork

(WAN) has also been established connecting PPL's three major producing fieldsand Regional Office in Islamabad

with the Head Office at Karachi. The Company hasimplemented SAP in 2004 integrating core business processes

using Costing, Finance,Human Resources, Materails Managemnet, Plant maintenanceand Project Systemsmodules.

The Government of Pakistan (GoP) in September 1997 purchased the entire equityinterest of Burmah Castrol

PLC, formerly Burmah Oil Company, in the Company(comprising 21 million ordinary shares of Rs.10 each)

representing 63.91 percent of theShare Capital thereby increasingits holding in the Company to

93.35percent.Subsequent to June 2004, the GoP has disinvested a portion of its equity in the Companyequivalent to

15% of the paid up share capital of (i.e. 102.873 million shares of Rs.10each) through an Initial Public Offering (IPO).

The GoP has made a policy decision toprivatize PPL and IPO is a significant step towards this direction.

PPL CAPITAL STRUCTUREThe current shareholding structure of the Company is as follows:

S.No Shareholders Percentage(i) Government of Pakistan 78.40%(ii) International Finance Corporation 4.26%(iii) Private shareholders 17.34%

100.0%