PAKISTAN PETROLEUM LIMITED

BALANCE SHEET AS AT JUNE 30, 2004

Jun-04
Rs '000
SHARE CAPITAL
Authorised
1,000,000,000 (2003:1,000,000,000)
ordinary shares of Rs.10 each ###
26,510 (2003:26,510) convertible
preference shares of Rs.10 each 265
###
Issued
686,011,120 (2003:686,010,870) ordinary
shares of Rs.10 each 6,860,111
16,070 (2003:16,320) convertible preference
shares of Rs.10 each 161
###
Subscribed & paid-up
683,071,573 (2003:683,071,323) ordinary
shares of Rs.10 each for cash 6,830,715
2,750,000 (2003:2,750,000) ordinary
shares of Rs.10 each for consideration other than cash 27,500
6,858,215
16,070 (2003:16,320) convertible preference
shares of Rs.10 each for cash 161
6,858,376
RESERVES 7,478,510
###
LONG-TERM PROVISION 1,669,931

LONG-TERM LIABILITY FOR GAS

DEVELOPMENT SURCHARGE 1,509,893

LIABILITIES AGAINST ASSETS

SUBJECT TO FINANCE LEASES 65,759

DEFERRED LIABILITIES 480,313

CURRENT LIABILITIES
Current maturity of long-term liability for Gas
Development Surcharge 503,689
Current maturity of liabilities against assets
subject to finance leases 27,555
Running finances under mark-up arrangements 0
Creditors, accrued expenses and other liabilities 4,478,852
Taxation 552,613
Proposed Dividend 1,714,570
7,277,279

###

PAST PROSPECTING EXPENDITURE

Cost 256,583
Less: Amortised to date 252,621
3,962
DECOMMISSIONING COST 1,502,938

FIXED ASSETS
Operating Assets 7,755,018
Capital work-in progress 625,739
8,380,757
INVESTMENTS
Bolan Mining Enterprises-a joint venture 15,000
Fully paid shares in a subsidiary company 1
15,001
LONG-TERM RECEIVABLES 1,509,893

LONG-TERM LOANS- STAFF 12,293

DEFERRED TAXATION 1,163,661

CURRENT ASSETS
Stores & Spares 1,128,514
Trade Debts 3,842,754
Current maturity of a long-term receivable 503,689
Advances,deposits,prepayments and
other receivables 638,366
Cash & bank balances 6,638,233
###

###
04

Jun-03
Rs '000

###

265
###

6,860,109

163
###

6,830,713

27,500
6,858,213

163
6,858,376
3,947,356
###
0

2,208,651

35,954

435,484

473,023
 10,504
1,250,000
3,832,653
27,358
1,371,675
6,965,213

###

256,583
250,871
5,712
0

6,260,946
2,279,531
8,540,477

15,000
1
15,001
2,208,651

9,815

778,855

992,856
2,644,521
473,023

314,718
4,467,405
8,892,523

###
 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2004

Jun-04
Rs '000

SALES 17,667,508

Field, prospecting and development

expenditure 6,260,909
Amortisation of past prospecting
expenditure 1,750
Royalties 1,953,576
8,216,235
OPERATING PROFIT 9,451,273
Share of profit in Bolan Mining Enterprises 27,631
Other income 158,939
9,637,843

Financial charges 11,000

Other charges 563,375
574,375
PROFIT BEFORE TAXATION 9,063,468
Taxation 2,446,069
PROFIT AFTER TAXATION 6,617,399

BASIC EARNING PER SHARE Rs 9.65

ED JUNE 30, 2004

Jun-03
Rs '000

12,181,320

5,944,870

1,900
1,297,787
7,244,557
4,936,763
30,702
303,608
5,271,073

76,197
355,521
431,718
4,839,355
648,910
4,190,445

Rs 6.11
 CASH FLOW STATEMENT FOR THE YEAR JUNE 30, 2004

Jun-04
Rs '000
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated fro operations 9,210,163
Taxes paid -2,305,620
Financial charges paid -31,949
Long-term receivables/(liability)-(net) 0
Long-term loans-staff (net) -2,478

Net Cash inflow from operating activities 6,870,116

CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditure -790,797
Financial income received 93,789
Proceeds on sale of fixed assets 10,599

Net cash outflow from investing activities -686,409

CASH FLOW FROM FINANCING ACTIVITIES

Right issue of ordinary shares 0
Liabilities against assets subject to finance leases -19,529
Dividends paid -2,743,350

Net cash outfloe from financing activities -2,762,879

Net increase/(decrease) in cash and cash equivalents 3,420,828

Cash and cash equivalents at beginning of the year 3,217,405

Cash and cash equivalents at the end of the year ###

NE 30, 2004

Jun-03
Rs '000

6,590,090
-1,582,729
-24,717
19,423
-284

5,001,783

-4,422,186
79,280
11,298

-4,331,608

22,787
-8,470
-754,194

-739,877

-69,702

3,287,107

###
 Ratios for Financial Statement Analysis
Liquidity Analysis Ratios

Current Ratio
Current Assets
Current Liabilities

Quick Ratio
Quick Assets
Current Liabilities

Net Working Capital Ratio

Net Working Capital

Total Assets

Profitability Analysis Ratios

Return on Assets (ROA)

EBIT * 100
Total Assets

Return on Equity (ROE)

EBIT * 100
Average Stockholders' Equity

Return on Common Equity (ROCE)

Net Income * 100

Sales

Earnings Per Share (EPS)

Net Income
No. of Shares
Activity Analysis Ratios

Assets Turnover Ratio

Sales
Total Assets

Accounts Receivable Turnover Ratio

Sales
Accounts Receivable

Inventory Turnover Ratio

Cost of Goods Sold
Inventories

Capital Structure Analysis Ratios

Debt to Equity Ratio

Total Liabilities
Total Stockholders' Equity

Interest Coverage Ratio

EBIT
Interest Expense

Capital Market Analysis Ratios

Price Earnings (PE) Ratio

Market Price of Common Stock Per Share
Earnings Per Share

Dividend per share

Cash Dividend
No. of shares
Dividend Yield

DPS * 100
Market Price of Common Stock Per Share

Dividend Payout Ratio

DPS
EPS

Book Value
Shares Holders Equity
No. of shares
 2004 2003

12,751,556 1.75 8,892,523 1.28

7,277,279 6,965,213

23,573,181 3.24 19,143,460 2.75

7,277,279 6,965,213

5,474,277 0.22 1,927,310 0.09

25,340,061 20,451,034

945127300 37.30 493676300 24.14

25,340,061 20,451,034

945127300 65.92 493676300 45.69

14,336,886 10,805,732

661,739,900 37.46 419,044,500 34.40

17,667,508 12,181,320

6,617,399 9.65 4,190,445 6.11

685837.6 685837.6
17,667,508 0.70 12,181,320 0.60
25,340,061 20,451,034

17,667,508 4.60 12,181,320 4.61

3,842,754 2,644,521

8,216,235 7.28 7,244,557 7.30

1,128,514 992,856

11,003,175 0.77 9,645,302 0.89

14,336,886 10,805,732

9,451,273 859.21 4,936,763 64.79

11,000 76,197

181.36 18.80 54.95 8.99

9.65 6.11

2743350 4.00 754194 1.10

685837.6 685837.6
399.9999416772 2.21 109.9668492949 2.00
181.36 54.95

3.9999994168 0.41 1.0996684929 0.18

9.65 6.11

14,336,886 20.90 10,805,732 15.76

685837.6 685837.6
 BASE YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4
SALES 100,000 102,000 105,060 106,636 111,968
COST OF GOODS SOLD (60,000) (61,800) (63,654) (65,564) (67,858)
GROSS PROFIT 40,000 40,200 41,406 41,072 44,109
OPERATIONAL EXPENSES:
SALARY EXPENSES (2,000) (2,034) (2,069) (2,104) (2,140)
MARKETING EXPENSES (1,000) (1,007) (1,014) (1,021) (1,028)
DEPRECIATION (BUILDING) (2,000) (2,750) (2,613) (2,482) (2,358)
BAD DEBTS (1,000) (510) (525) (533) (280)
(6,000) (6,301) (6,220) (6,140) (5,806)
EBIT 34,000 33,899 35,186 34,932 38,304
INTEREST EXPENSES (2,000) (5,000) (5,000) (4,500) (4,000)
EBT 32,000 28,899 30,186 30,432 34,304
TAX @ 50% (16,000) (14,450) (15,093) (15,216) (10,291)
NET PROFIT 16,000 14,450 15,093 15,216 24,013
DIVIDEND 0 (433) (453) (456) (1,201)
RETAINED EARNINGS 16,000 14,016 14,640 14,760 22,812

ASSUMPTIONS: YEAR 1 YEAR 2 YEAR 3 YEAR 4

Sales growth rate 2.00% 3.00% 1.50% 5.00%
CGS increase 3.00% 3.00% 3.00% 3.50%
Salary Expense increase 1.70%
Marketing Expense increase 0.70%
Book Value Building 55,000 52,250 49,638 47,156 44,798
Debtors at end of base year 25,000 25,500 26,265 26,659 27,992
Depreciation Rate 5% 5% 5% 5%
Outstanding Ioan 50,000 50,000 45,000 40,000
Interest Rate 10% 10% 10% 10%
Tax Rate 50% 50% 50% 30%
Dividend 3% 3% 3% 5%
YEAR 5
117,566
(70,233)
47,333

(2,176)
(1,035)
(2,240)
(294)
(5,745)
41,588
(4,000)
37,588
(11,276)
26,311
(1,316)
24,996

YEAR 5
5.00%
3.50%

42,558
29,392
5%
40,000
10%
30%
5%