Business Finance-1

Financial Analysis of Shell Pakistan (Pvt) Ltd

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Introduction

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Introduction: Shell Global

Shell Global
Headquartered in The Hague, the Netherlands.
Parent company of the Shell group is Royal Dutch Shell plc,

incorporated in England and Wales.

Operates in 70+countries.
87,000employees.
Presence in Upstream, Midstream and Down Stream.
50%production is natural gas.
44,000Shell service stations worldwide.
30 +refineries and chemical plants.

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Introduction: Shell Pakistan

Shell has been in Pakistan for over a century, dating back to

1899.

Deals in Retail, Lubricants and Aviation Fuels.

Shell serves approximately1,000,000customers at its Retail

stations in Pakistan.

Over750Retail stations across the country.

Offering over15lubricants for different vehicles and industrial

uses.

A Shell fleet of over600oil tankers distributes our products

nationwide

Shell has a39%brand share preference.

SPL distributes from11oil depots (including JVs).

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Major Oil Marketing Companies In Pakistan

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Market Share of OMCS in Pakistan

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Industry Overview

Global Crude Oil Prices started dropping in July-14 from $95.46 per
barrel to approx. $45 (latest update). This resulted in huge financial
losses for major oil companies with many upstream projects closing
down and price drop impacts percolating downstream.

Consumption of petroleum products in Pakistan grew by around

8.7% from 19.5 million to 21 millionmetrictons.

CNG consumption declined around 12% largely due to load

shedding and further driven by dropping oil prices.

Petrol consumption grew around 15.2% for Petrol and 1% for Diesel.

A significant development in 2014 was the sale of Chevron shares

to Total Parco Pakistan.
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Financial Analysis

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Net Revenue

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Liquidity Position

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Profitability Ratios (ROE & ROA)

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Profitability Ratios (Net Profit & Gross Profit)

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Efficiency Ratios (DSO & Inventory T/O in Days)

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Share Price Ratios

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Gearing Ratio

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Time Interest Earn

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Current News

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Shell Pakistans Current Standing

Shell Pakistan Ltd on Thursday posted a loss-after-tax of Rs1.067 billion
for the year ended Dec 31, 2014 against a profit of Rs1.061bn in last year,
said a press release.
Its board declared a cash dividend of Rs8 per share, as the underlying
profitability of the company was robust.
Shell reported achievements in operational performance, increase in
market share and growth profitability in its retail, lubricants and aviation
businesses, but its financial results for 2014 were heavily impacted by high
inventory losses due to sharp decline in oil prices.
Reference: http://www.dawn.com/news/1169190

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PSOs Current Standing

The government sent the chairman of the Oil and Gas Regulatory Authority
(Ogra) on forced leave and removed all members of the board of
management of Pakistan State Oil (PSO) on Wednesday, blaming them for
the recent petrol crisis.
Since chairmen and members of regulatory bodies are protected under the
law, the government decided to send a reference against Ogra Chairman
Saeed Ahmed Khan to the Federal Public Service Commission over his
misconduct.
Reference: http://www.dawn.com/news/1163075

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