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