Pakistan State Oil Case Study

PSO

PSO is the market leader in Pakistan's energy sector. The company has the largest network of retail outlets to serve the automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces and agriculture sector.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage, distribution and marketing of various POL products. The company's current value of Rs. 75 billion, its 82.1% share in the black oil market and 61.2% share in the white oil market, alone speak volumes about its success.

The company has significant growth in sales and turnover, tells the status of being the first Pakistani Public Sector Company to become a member of the World Economic Forum (WEF), and winning the "Karachi Stock Exchange Top Companies Award". PSO has the widest oil distribution network. This network consist of 29 storage depots and 9 installations, 860,000 MTs of capacity i.e. almost 81% of total national storage, (1060000 MTs) Product movement system includes a fleet of 6000 tank Lorries, tank.

PAKISTAN STATE OIL

INTRODUCTION

PSO is the market leader in Pakistan's energy sector. The company has the largest network of retail outlets to serve the automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces and agriculture sector.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage, distribution and marketing of various POL products. The company's current value of Rs. 75 billion, its 82.1% share in the black oil market and 61.2% share in the white oil market, alone speak volumes about its success.

The company has significant growth in sales and turnover, tells the status of being the first Pakistani Public Sector Company to become a member of the World Economic Forum (WEF), and winning the "Karachi Stock Exchange Top Companies Award". PSO has the widest oil distribution network. This network consists of 29 storage depots and 9 installations, 860,000 MTs of capacity i.e. almost 81% of total national storage, (1060000 MTs) Product movement system includes a fleet of 6000 tank Lorries, tank wagons

And pipelines..

With its 3612 distribution outlets, PSO has the largest network in the country. Out of these, 1,610 outlets have been upgraded as per the New Vision Retail Program, with most modern facilities like electronic dispensing units, convenience stores, business centers, Easy Payment Centers and customer friendly staff to provide better and diverse services to its customers, these are according to international practices. PSO serves 2.8 million retail customers on daily basis, along with 2000 industrial units and business houses. The company has also been meeting the fuel needs of various government entities, armed forces, railways, agriculture sector, and industrial units. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports.

Vision Statement

"To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first"

Mission Statement

We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services o our customers based on:

o Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development.

o Lowest cost operations and assured access to long-term and cost effective supply sources.

o Sustained growth in earnings in real terms.

o Highly ethical, safe environment friendly and socially responsible business practices.

Financial statement analysis:

Financial statement analyses are the principal means of reporting the financial condition and results of operations of a business entity. These statements are the means to assist various parties in decision-making who are interested in the activities of the business. These statements are means to an end of helping stakeholders in decision-making. To improve the quality of decision making, proper analysis of these statements helps a lot. Financial statements analysis helps in determining the financial conditions at any particular point in time and effectiveness of operations of a firm during a specific period.

The various stakeholders of business are all interested in the analysis of financial statements. But the focus of interest of all is not the same. For example creditors and credit reporting agencies are interested in finding out the credit worthiness of the firm to which they have extended credit or intend to extend credit. Short term creditors are interested in the short term liquidity of the business and long term creditors are interested in the long run cash flow which the firm can generate over the long period of time. Investors are interested in the firm's ability to sustain profitability over a period of time. Government agencies analyze financial data for tax purposes. The internal users of financial statement like management also analyze financial data for planning and control.

Pakistan State Oil

Comparative Balance sheet

As on June, 30, 2004, 2005,2006,2007,2008.

2004 2005 2006 2007 2008

ASSETS

Non Current Assets