Running head: ANALYSIS OF PPL 1

NAME: MANSOOR KHAN

ID: BUS-18F-029

SECTION: BBA (7B)

COURSE INSTRUCTOR: SIR RAZA ALI

SUBJECT: CORPORATE FINANCE

ASSIGNMENT # 02
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PAKISTAN PETROLEUM LIMITED:

The pioneer of the natural gas industry in the country, Pakistan Petroleum Limited (PPL) has
been a frontline player in the energy sector since the mid-1950s. As a major supplier of natural
gas, PPL today contributes over 20 percent of the country’s total natural gas supplies besides
producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas. The company’s history
can be traced back to the establishment of a public limited company in June 1950, with major
shareholding by Burmah Oil Company (BOC) of the United Kingdom for exploration,
prospecting, development and production of oil and natural gas resources. In September 1997,
BOC disinvested from the Exploration and Production (E&P) sector worldwide and sold its
equity in PPL to the Government of Pakistan (GoP). Subsequently, the government reduced its
holding through an initial public offer in June 2004, which was further decreased with the
initiation of the Benazir Employees Stock Option Scheme (BESOS) in August 2009 when PPL
employees were allotted 12 percent shares from the government’s equity. More recently, GoP
further disinvested its 5 percent shares, around 3.55 percent of the total paid-up capital, in PPL
through Secondary Public Offering in 2014. Currently, the company’s shareholding is divided
between the government, which owns about 67.51 percent, PPL Employees Empowerment Trust
that has approximately 7.35 percent — being shares transferred to employees under BESOS —
and private investors, who hold nearly 25.14 percent. PPL has acquired 100 percent shareholding
of MND E&P Limited, a company incorporated in England and Wales. PPL together with its
subsidiaries has a portfolio of 44 exploration assets of which the company operates 25, including
one contract in Iraq, while 19 blocks, comprising two offshore leases in Pakistan and one
onshore concession in Yemen, are operated by joint venture partners. Over the years, PPL has
developed a reliable foundation and infrastructure for providing clean and safe energy through
sustainable exploitation of indigenous natural resources while adhering to best practices of
corporate governance and employee health and safety and constraining the ecological footprint
of its operations. Similarly, Kandhkot, Adhi and Hala, Gambat South, Mazarani assets, Sui Field
Gas Compressor Station, Sui Production, Sui Field utility, Sui Stores, Sui Field Hospital and
Exploration, Quality, Health, Safety and Environment, Drilling & Well Engineering,
Construction and Projects departments have been certified for ISO 14001 Environmental
Management System and ISO 45001 Occupational Health & Safety Management System.
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Purification Plant, Sui, is also certified for ISO 45001 Occupational Health & Safety
Management System.

ANALYSIS OF FINANCIAL STATEMENT:

 PPL has debt of 200,346,061 (in thousands) and it means its debt relative to equity ratio
is of 0.58.
 Company has short-term investment or liquidity to cater their immediate obligations.
 The company has total fixed asset of 193,832,578 (in thousand).
 Outstanding payments are 200,346,061 (in thousands).

FINANCIAL REVIEW:

Financial Performance Profit after tax of the Company decreased during the financial year ended
30 June 2020 as compared to the profit after tax of the corresponding last year ended 30 June
2019. the reason is the pandemic of Covid-19 which affects almost all the businesses in the
country so this also got affected due to less import. Revenue of the Company decreased by Rs.
10,034,765 (in thousands) in the current year ended 30 June 2020 as compared to the
corresponding year ended 30 June 2019.
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CASH FLOW STATEMENT:

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FINANCIAL RATIO ANALYSIS:

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RECOMMENDATIOPNS:
The company should move forward in the sector of energy as the country is need of energy and
our resources are short and it makes us high cost so it will be less costly for them compare to
others and company should also give the more numbers of shares to their workers and should
also start training courses for the health of employees and also make them learn about the safety
of environment which is the main and most important thing for the country and for them as well.

CONCLUSION:
As we know that this company is a major supplier of natural gas and also contributes over 20
percent of the country’s total natural gas supplies besides producing crude oil, Natural Gas
Liquid and Liquefied Petroleum Gas. As it shows the company faced the issues in 2020 due to
covid-19 pandemic but still made it by their management and also made los in profit but as a
leading supplier they saved their self and did the right operations and decisions in the bad time to
retain their name in the market.