Pso Finance 5yv6m

PAKISTAN STATE OIL Submitted To: Mam Huma Ayub Submitted By: Amber Iftikhar (04) Hadeeqaa Farhat (16) Saba Iqbal (38) Shafaq Javaid (42) Sidrah Asif (44)

Pakistan State Oil To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first

Introduction  Pakistan State Oil (PSO) is the country's leading

state- owned oil marketing company  The creation of Pakistan State Oil (PSO) can be

traced back to the year 1974.  PSO has a network of 3612 retail outlets including

more than 1,600 New Vision Retail Outlets that offer besides the usual gas-station services.  PSO is catering needs of approximately 2.8

million customers per day.

Values:  Excellence  Cohesiveness  Respect  Integrity  Innovation  Corporate Responsibility

Fuel Products:  Retail fuels  Gaseous fuel  Alternate fuel  Lubricants  Aviation and marine  Non fuel retail  Chemicals

5 Years Financial Analysis  Vertical Analysis Of Income Statement  Horizontal Analysis Of Income Statement  Vertical Analysis Of Balance Sheet  Horizontal Analysis Of Balance Sheet  Financial Ratios Analysis

Comments on Analysis Income Statement:  Gross profits has increased in line with revenues and

has ed a greater increase over the years.

 Finance cost has shown an unusual increase over the

years due to increase in markup on borrowings.

 Finance cost has shwn an unusual increase over

the years due to increase in markup on borrowings.  Gross sales revenue has grown from 46 bn to

1.3 trillion in 2013.  Profit after tax has shown increased.

Comments on Analysis Balance Sheet:  Share holders equity has increased over the

years mainly due to retentions of profits to over come liquidity problems due to circular debt.  Trade and other payables have shown un usual

increase over the years due to circular issue.

 Stock in trade has increased over the years

mainly due to increase in stock level to keep pace with industry demands and over all increase in oil prices.  The verticlr analysis depicts that share of stock in

trade in total assets fluctuates mainly in increase and decreae in oil prices.

Comments on Analysis Financial Ratios:  Shareholders equity rose by 24% as compared

to FY2012 due to net retained income during the year.  Total non current assets increased by 49% as

compared to previous year on of investments amounting to Rs 46 bn.

 Current assets decreased 34% as compared to

FY2012.  Total liabilites declined by 26% due to reduction

in obligation to local refineries by 83%.  The company’s after tax profitabilaty has

increased by 39% .

 The gross profit ratio has shown a stable trend

while net profit ratio has increased by 29% compared to FY2012  The return on total assets has incerased due to

the impact of an increase in profit after tax and decline in total assets by 19%.  Cash to current libilaties and cash flow from

opperations to sales have improved.

Industry Position:  PSO is dominating with share of 63 % in

market.  Company's black oil and white oil stand at

75% and 53% .  Leading share index of 11% in Dec 31 2013.

S.W.O.T Analysis Strength:  It has adequate financial resources & is a

public sector organization.  PSO petrol pumps are computerized.  It is having of the government.  It has well conceived functional area strategies.

Weakness:  PSO is falling behind in research and

development.  It has weak market image as compared to Shell. Oppertunities:  Will expand the business and enter into the

new market.  Add some complementary products in the future.

Threats:  Entry of the new competitors .  New technology .  Adverse government policies like increase

taxation.  Adverse demographic changes.

Suggestions:  They should pay attention to make the

research and development department efficient and active.  Should overview the location of petrol pumps

to increase sales.  PSO need to improve the marketing policies.