Project Report

Business Finance
Attock Petroleum Pakistan Limited
A REPORT SUBMITTED TO THE DEPARTMENT OF LAHORE BUSINESS SCHOOL - LBS,
UNIVERSITY OF LAHORE.

Submitted by
Waqar Haider: 70073603

Submitted to
Sir Muhammad Ishfaq Ahmed
Session 2018-2020
Lahore Business School
University of Lahore

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 Table of Contents
1. Introduction.........................................................................................................................................3
2. Weighted Average Cost of Capital (WACC).......................................................................................4
3. Share Price Po......................................................................................................................................5
4. Beta Value from Internet.....................................................................................................................5
5. Calculation of rs..................................................................................................................................6
Last 5 Years Sales Growth......................................................................................................................6
6. Balance Sheet......................................................................................................................................7

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 1. Introduction
Attock Petroleum Limited (APL) is the 4th Oil Marketing Company in Pakistan to be granted a marketing license and
commenced operations in February 1998. Jointly sponsored by the Pharaon Investment Group Limited Holding
s.a.l. (PIGL) and Attock Oil Group of Companies (AOC); PIGL has diversified global interests in upstream and
downstream petroleum sector, chemicals, cement and real estate sectors. APL is the only oil marketing company in
Pakistan belonging to a fully vertically integrated group covering all aspects of the Oil and Gas sector of Pakistan;
from exploration, production and refining to marketing of a wide range of petroleum products.
Though a relatively new entrant in the field of oil marketing, APL has managed to establish its presence and
reputation as a progressive and dynamic organization, focused on providing quality petroleum products and
services in Pakistan and abroad. Our steadily and substantially growing market share and customer confidence are
a testimony to our successful policies, proactive endeavors and visionary outlook. An ambitious strategic corporate
policy, implemented by a dedicated team of professionals has enabled us to sustain a commendable level of
growth. APL is continuously expanding, and our market share and customer confidence is growing steadily.
Sustaining a two-fold role in the oil market by meeting the unique demands of the region and at the same time
catering effectively to the requirements of an international clientele, we have effectively penetrated the market
and are successfully competing with well-established oil marketing companies.
Today, with an extensive storage, transportation & retail outlet network, APL is committed to contribute to the
nation’s development by supplying quality products and services are beyond the expectations of our customers
and other stakeholders. APL is proud to be synonymous with a future-oriented outlook, and provide
technologically advanced products and services that set the standard in precision and quality. Offering a broad
spectrum of petroleum products and having over 600 retail outlets.

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 2. Weighted Average Cost of Capital (WACC)
The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of
capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any
other long-term debt, are included in a WACC calculation. A firm’s WACC increases as the beta and rate of return
on equity increase because an  increase in WACC denotes a decrease in valuation and an increase in risk.

Booked Value WACC from Internet Beta

WACC = (we)(rs)
  2.35052776325499%  
  2.3505%  
WACC from Booked Value By Dividend Discount Model
 
rs= 11.13%  
WACC = (we)(rs)
  11.12595929294780%  
  11.1260%  

WACC from Market Value By Dividend Discount Model

Equity 37,928,964,096.00 99,532,800 @ Po=381.07
We= 100.000%  
WACC = (we)(rs)
  11.12595929294780%  
  11.1260%  
WACC from Market Value By CAPM Model Calculated Beta
Equity 37,928,964,096.00 99,532,800 @ Po=381.07
We= 100.000%  
WACC = (we)(rs)
  9.47800738427198%  
  9.4780%  
WACC from Market Value By CAPM Model from Internet Beta
Equity 37,928,964,096.00 99,532,800 @ Po=381.07
We= 100.000%  
WACC = (we)(rs)
  2.35052776325499%  
  2.3505%  

Above table shows that the Market value of WACC by CAPM is greater as compare to Book value of
WACC. Values of WACC by CAPM are on greater side because the value of BETA is greater than 01,

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which means that the company is high risky. Book value of WACC are better than market values. On the
other hand, by dividend discount model, the book value of WACC is better than market value.

3. Share Price Po

4. Beta Value from Internet

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 5. Calculation of rs

Last 5 Years Sales Growth

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 6. Balance Sheet
Not
SHARE CAPITAL AND RESERVES e Rupee
Authorized capital   1,500,000
Issued, subscribed and paid up capital 6 995,328
Equity

Special reserves 7 219,785

Unappropriated profit   17,711,622
      18,926,735
 

Fair value gain on available-for-sale investments    

NON CURRENT LIABILITIES   18,926,735

Long term deposits 8 716,283

Deferred tax liability 9 76,710

CURRENT LIABILITIES   792,993
Trade and other payables 10 26,633,386
Unclaimed dividend 11 49,598
Provision for current income tax    
    26,682,984
CONTINGENCIES AND COMMITMENTS    
12 46,402,712
Total Capital

    18,926,735

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