Pakistan State Oil

Company
Presented by:

Sabeen Javaid
Shehzadi Naz
Saba Manzoor
Akbar Ali
Jahanzeb Maqbool
 Agenda

 Introduction of PSO

 Introduction of Shell Pakistan

 Trend analysis of PSO

 Financialcomparison of PSO with Shell Pakistan

for the period 2007-2008
 Introduction

The Pakistan’s Oil marketing sector mainly

consists of three companies namely Pakistan
State Oil , Shell Pakistan and Caltex Pakistan.
 Introduction of PSO
 Accordingto the statistics, PSO is the leading
oil company in Pakistan.

 PNOand POCL were merged into SOCL which

was renamed to PSO on Dec 30th ,1976.

 In1999, with the new logo of PSO the new

vision program was launched.
 About 80% of total furnace oil market is
controlled by PSO.

 60% of Pakistan’s diesel fuel market is

influenced by PSO.

 PSO controls almost 70% of the total finished

fuel products market of Pakistan.

 The retail sales are the biggest revenue

generator for PSO , which topped PKR 254 billion
in 2005 to make PSO Pakistan‘s largest company.
 Introduction of Shell
Pakistan

 Here we are comparing the ratio of PSO with Shell

to find out the success rate of PSO in comparison
with other oil companies of Pakistan.

 Shell Pakistan, the second biggest oil marketing

company in the country

 Shell Pakistan is PSO’s largest competitor having a

marketing share of more than 25%.
Shell performance (1997-99)
 The Company has posted Rs 881 million after tax
profit for the year as compared to Rs 592 million
for the previous year.

 The Company also announced Rs. 8.5 in cash

dividend (final) per share.

 It had previously paid interim dividend of Rs 4 per

share.
Shell performance (1997-99)

 Thetotal dividend paid to shareholders during the

year comes to Rs 12.5 per share (125 per cent) .

1998-99 1997-98

sales 49,887 42,980

Gross Profit 2,921 2,204
Operating Profit 1,271 929
Before tax profit 1,341 922
After Tax Profit 881 592
Financial comparison of PSO
with Shell Pakistan
 TABLE

SERIEL RATIOS AS OF PSO SHELL

NO. 2ND JULY, 2008.

1. Current Ratio 1.22 1.16

2. Quick Ratio 0.59 0.54

3. Debt Ratio 74.28 % 66.5 %

4. Gross Profit Margin 4.7786 % 8.25 %

5. Net Profit Margin 2.2182 % 2.29 %

6. Earnings Per Share 109.28 rupee per share 106.65 rupee per share

7. Return on Equity 0.7222 0.253

8. Working Capital 37,270 million rupee 7,013.9 million rupee

9. Receivable Turnover Rate 21.37 times 24.87 times

10. Inventory Turnover Rate 17.45 times 17.72 times

 CURRENT RATIO

12

10

8
PSO
6
SHELL
4

0
2007 2008
 GROSS PROFIT MARGIN
12

10

6 PSO
SHELL
4

0
2007 2008
Trend year over year
Gross Profit
2007 2008 %age
11317.8 29061.1 156.77%

Total Revenues

2007 2008 %age

349706.3 495278.5 41.62%

Trend year over year
Net Income
2007 2008 %age
4689.8 14053.8 199.67%

Cost of Goods Sold

2007 2008 %age

338388.5 466217.4 37.78%
Trend year over year
Expenses
2007 2008 %age
6628.0 15007.3 126.42%

Receivables

2007 2008 %age

29404.3 49642.16 68.83%
Trend year over year
Assets
2007 2008 %age
74737.3 127110.0 70.075%

Liabilities

2007 2008 %age

53798.2 96145.0 78.72%
Trend year over year
Total Revenues
2007 2008 %age
20939.2 30965.0 47.88%
Component %ages of income statement for the year 2007

Net Sales 349706.3

Cost of goods sold 338388.5
Gross Profit 11317.8
Expenses 6628.0
Net Income 4689.8

Cost of goods sold as a %age of Net Sales 96.76%

Expenses as a %age of Net Sales 1.89%
Net Income as a %age of Net Sales 1.35%
Component %ages of income
statement for the year 2008
Net Sales 495278.5
Cost of goods sold 466217.4
Gross Profit 29061.1
Expenses 15007.3
Net Income 14053.8

Cost of goods sold as a %age of NetSales 94.13%

Expenses as a %age of Net Sales 3.03%
Net income as a %age of Net Sales 2.83%
 Component %ages of Balance Sheet for the year 2007

Total Assets 74737.3

Total Liabilities 53798.1
Total Equity/Capital 20939.2
 
Total Liabilities as a %age of total assets 71.98%
Total Capital as a %age of total assets 28.02%
 Component %ages of Balance Sheet for
the year 2008
Total Assets 127110.0
Total Liabilities 96145.0
Total Equity/capital 30965.0
 

Total Liabilities as a %age of TotalAssets 75.639%

Capital as a %age of Total Assets 24.36%
THANK YOU!!!!!!!!!!!!!