Professional Documents
Culture Documents
Format
Format
Format
GAS SECTOR
Presented by :-
Class : BFIA 2A
ACKNOWLEDGEMENT
INTRODUCTION
SECTOR OVERVIEW
SWOT ANALYSIS
BCG MATRIX
RATIOS
BIBLIOGRAPHY
INTRODUCTION
The petroleum industy includes the global
process of exploration, extraction, refining,
transporting (often by oil tankers and pipelines)
and marketing petroleum products.
The foundation of the Oil & Gas Industry in India was laid
by the Industrial Policy Resolution, 1954, when the
government announced that petroleum would be the core
sector industry. In pursuance of the Industrial Policy
Resolution, 1954, Government-owned National Oil
Companies ONGC (Oil & Natural Gas Commission), IOC
(Indian Oil Corporation), and OIL (Oil India Ltd.) were
formed.
Why we have chosen Oil & Gas
sector?
Petroleum is vital to many industries, and is of
importance to the maintenance of industrial
civilization itself, and thus is a critical concern for
many nations. Oil accounts for a large percentage
of the world’s energy consumption, ranging from as
low of 32% for Europe and Asia, up to a high of
53% for the Middle East.
OPPORTUNITIES THREATS
OPPORTUNITIES THREATS
OPPORTUNITIES THREATS
1.One of the strongest brands , in operations 1.Employee management across the world
for over 100 years . 2.Negative Publicity from Exxon Valdes Spill
2.R&D and diverse operations 3.Environmental hazards and oil spills
3.Growing financial performance 4.Involved in illegal Trade with few countries.
4.Has over 83,000 employees
5.37 oil refineries in 21 countries
6.Better Cash flows in terms of Revenue and
profit.
OPPORTUNITIES THREATS
1.Increasing demand for LPG and CNG 1.Government regulations and policies.
2.High investments 2.High Competition
3.Increasing prices of fuels across the world 3. Slowdown in economy due to recession.
4. Market Development in oil demanding 4.Alternative energy sources
markets like Indonesia , korea . 5. Increasing resistance from environment and
social groups.
BCG MATRIX
• ONGC
• BPCL
• EXXON
• HPCL
STAR ?
CASH
DOG
COW
• IOC
MICHAEL PORTER 5 FORCES MODEL
THREAT OF NEW ENTRANTS – THREAT OF SUBSTITUTES –
LOW MEDIUM
Requires high capital investment Threat of substitutes is very small
Economies of scale is vital for now
Access to distribution channel Renewable energy may pose a
critical threat over the years
COMPETITIVE RIVALRY –
MEDIUM BARGAINING POWER OF
SUPPLIERS – LOW
Limited number of companies
owing to the nature of the Oil industry has small sub-
industry suppliers from various industries,
so the bargaining power of
Foreign and private players suppliers is low
beginning to enter the scene
BARGAINING POWER OF
CUSTOMERS – LOW
Traded at global prices, so
customers have no bargaining
powers.
RATIOS
Debt-equity ratio
Total asset to debt ratio
Current Ratio
Quick Ratio
1.5 BPCL
HPCL
IOC
EXXON
1 ONGC
RIL
0.5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source:capitaline
TOTAL ASSET TO DEBT RATIO
𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡
𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 𝑡𝑜 𝑑𝑒𝑏𝑡 𝑟𝑎𝑡𝑖𝑜 =
𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡
Total Asset To Debt Ratio
5
4.5
3.5
BPCL
2.5
HPCL
2
IOC
1.5 RIL
0.5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source:capitaline
EXXON 45
40
35
30
25
20
EXXON
15
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
ONGC
40
35
30
25
20 ONGC
15
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
INTEREST COVERAGE RATIO
25
20
BPCL
15 HPCL
IOC
RIL
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
EXXON
250
200
150
EXXON
100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
ONGC
300
250
200
150
ONGC
100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
CURRENT RATIO
1.5 BPCL
HPCL
IOC
1
EXXON
ONGC
RIL
0.5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source:www.capitaline.co
QUICK RATIO
The Acid-test or quick ratio or liquid
ratio measures the ability of a company to
use its near cash or quick assets to
extinguish or retire its current liabilities
immediately. Quick assets include
those current assets that presumably can
be quickly converted to cash at close to
their book values. A company with a Quick
Ratio of less than 1 cannot currently pay
back its current liabilities.
1.8
1.6
1.4
1.2
BPCL
1 HPCL
IOC
0.8 EXXON
ONGC
0.6 RIL
0.4
0.2
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
BIBLIOGRAPHY
Capitaline
Investopedia
Wikipedia
Yahoo Finance
Money control
Professor Google