Financial Report

PSO, CALTEX & SHELL

Submitted To:

Sir Shahzad Sadiq

Submitted By:

Muhammad Sajjad Ishaq

6947

Shehroz Naqvi

6924

Haider Ali

6912

Umar Farooq Sial

6920

MSc. IT. (1st Semester) Morning

UNIVERSITY OF EDUCATION LAHORE,

MULTAN CAMPUS MULTAN
1

Dedication
This report is dedicated to my Parents and teachers who took
initiative and did grim struggle for my education and Always stress
on me to utilize my time.

ACKNOWLEDGMENT

In the name of Almighty Allah who is most merciful, and who give me strength to
write this internship report in a different way. I extend my heartiest thanks to my seniors,
colleagues, and subordinates who assist me on every occasion to enable me to write this
report.
My parents, classmates, friends come next in the list of those whom I have to
thank.
This report has been written on the PSO, Caltex, and Shell which is the largest
Petroleum Company in Pakistan.Whether it is an office in a largest city or home in a small
village, present in every corner of Pakistan to serve its valued customers.
I would like to thanks to all those people who have helped me in making this
report specially my teachers Sir. Shahzad Sadiq. I am thankful for their kind co-operation
to the completion of my project work. Last but not least I wish to avail myself of this
opportunity, express a sense of gratitude and love to my friends and my beloved parents
for their manual support, strength, and help and for everything.

EXECUTIVE SUMMARY
PSO is the market leader in Pakistans 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. PSO also provides
Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3
ports. The company takes pride in continuing the tradition of excellence
and is fully committed to meet the energy needs of today and rising
challenges of tomorrow.
Pakistan State Oil, the largest oil marketing company in the
country, is currently engaged in storage, distribution and marketing of
various POL products. The companys current market share of 82.3% in
the black oil market and 59.4% share in the white oil market, alone
speak volumes about its success
Caltex is a petroleum brand name of Chevron Corporation used in
more than 60 countries in the Asia-Pacific region, the Middle East and
Southern Africa. Caltex began in 1936 as the California Texas Oil
Company, a joint Venture between Texas Company (later named
Texaco) and Standard Oil of California (later named Chevron Corp) to
market oil from newly concessions in Saudi Arabia.
It was renamed Caltex Petroleum Corp in 1968. (As an interesting
side note: in the Vincent Price movie 'The Last Man on Earth' released in
1964--he gets his gas from a Caltex tanker. ----). The two parent
companies merged in 2001 to form ChevronTexaco (renamed Chevron
in 2005) and Caltex remains one of its major international brand names.
Shell Pakistan Ltd. is a public sector company primarily engaged
in oil and lubricants marketing. Until March 1993, Shell operated in
Pakistan as Pakistan Burma Shell Ltd. Then Burma Castrol sold its 24%
stake in PBS to Shell International Petroleum plc. This increased Shell
Internationals stake to 49% and after buying 2% from the local market,
they increased it to 51% and took over PBS and renamed it Shell
Pakistan Ltd.

Shell Pakistan has a primary listing on Karachi Stock Exchange. It

is also listed on Lahore and Islamabad Stock Exchange.

TABLE OF CONTENTS
TOPIC

PAGE No:

PSO
Introduction ..........................................................................8
History ..................................................................................8
Board of Director ...................................................................9
Vision Statement.................................................................10
Mission Statement...............................................................10
Values..................................................................................10
Definition
11
Profit

&

Loss

Account
..12
Balance Sheet .....................................................................10
SWOT Analysis.....................................................................14
Comparison
..34
Conclusion
.35

Pakistan State Oil Company in Karachi

Pakistan State Oil Pump

Pakistan State Oil Tanker

INTRODUCTION
PSO is the market leader in Pakistans 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. PSO also
provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship
fuel at 3 ports. The company takes pride in continuing the tradition of
excellence and is fully committed to meet the energy needs of today
and rising challenges of tomorrow.
Pakistan State Oil, the largest oil marketing company in the
country, is currently engaged in storage, distribution and marketing of
various POL products. The companys current market share of 82.3% in
the black oil market and 59.4% share in the white oil market, alone
speak volumes about its success.

History
The creation of Pakistan State Oil (PSO) can be traced back to the
year 1974, when on January 1st; the government took over and merged
Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as
Premiere Oil Company Limited (POCL).
Soon after that, on 3rd June 1974, Petroleum Storage
Development Corporation (PSDC) came into existence. PSDC was then
renamed as State Oil Company Limited (SOCL) on August 23rd 1976.
Following that, the ESSO undertakings were purchased on 15th
September 1976 and control was vested in SOCL. The end of that year
(30th December 1976) saw the merger of the Premier Oil Company
Limited and State Oil Company Limited, giving way to Pakistan state Oil
(PSO).
After PSOs inception, the corporate culture underwent a
comprehensive renewal program which was fully implemented in 2004.
This program over the years included the revamping of the
organizational architecture, rationalization of staff, employee
empowerment and transparency in decision making through cross
functional teams. This new corporate renewal program has divided the
companys major operations into independent activities supported by
legal, financial, informative and other services. Inorder to reinforce and
monitor this structural change, related check and balances have been
established by incorporating monitoring and control systems.
Human Resource Development became one of the main priorities
on the companys agenda under this corporate reform.
It is due to this effective implementation of corporate reform and
consistent application of the best industrial practices and business
development strategies, that PSO has been able to maintain its market
leadership in a highly competitive business environment.
Pakistan State Oil is a Karachi-based Pakistani state-owned
multinational petroleum corporation involved in marketing and
10

distribution of petroleum products. It has a network of 3,689 filling

stations, out of which 3,500 outlets serve the retail sector and 189
outlets serve bulk customers.
It controls a market share of over 60% of the total oil market with
customer
portfolio
including
dealers,
government
agencies,
autonomous bodies, independent power projects and other corporate
customers. It is involved in import, storage, distribution and marketing
of a range of petroleum products including gasoline, diesel, fuel oil, jet
fuel, LPG, CNG and petrochemicals.
It was founded on December 30, 1976, after Pakistan's
government took over the management of Pakistan National Oil
(PNO) and Dawood Petroleum Limited and renamed into POCL
(Premier Oil Company Limited) under marketing of Petroleum
Products. PSO is the first public company in Pakistan to pass the
PKR 1 trillion revenue mark.
Its primary listing is on the Karachi Stock Exchange and it is a
constituent of the KSE-30 Index. PSO has been named among the
Forbes Global 2000 continuously over the years. Its revenues in 2014
stood at PKR 1,410 billion ($ 14 billion) and after-tax profit stood at PKR
21.8 billion ($210 million). The company's market capitalization is
greater than PKR 100 billion.
The creation of Pakistan State Oil (PSO) can be traced back to the

year
1974,
when
on
January 1; the government took

over and merged National Oil

(PNO)
and

Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited

(POCL).
11

Soon after that, on 3 June 1974, Petroleum Storage Development

Corporation (PSDC) came into existence. PSDC was then renamed as
State Oil Company Limited (SOCL) on August 23, 1976. Following that,
the ESSO undertakings were purchased on 15 September 1976 and
control was vested in SOCL. The end of that year (30 December 1976)
saw the merger of the Premier Oil Company Limited and State Oil
Company Limited, giving way to Pakistan state Oil (PSO).

Board of Directors

Mr. Sheikh Imran-ul-Haque MD &

CEO

Mr. Yacoob Suttar DMD & CFO

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

Mission:
We are committed to leadership in energy market through competitive
advantage in providing the highest quality petroleum products and services to our
customers,
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.
Lowest cost operations and assured access to long-term and cost effective supply
sources.
Sustained growth in earnings in real terms.
Highly ethical, safe environment friendly and socially responsible business
practices.

Values:
To excel in delivering value to customers as an innovative and
dynamic energy company that gets to the future first.
Excellence
We believe that excellence in our core activities emerges from a
passion for satisfying our customers' needs in terms of total
quality management. Our foremost goal is to retain our corporate
leadership.
12

Cohesiveness
We endeavor to achieve higher collective and individual goals
through team. This is inculcated in the organization through
effective communication.
Respect
We are an Equal Opportunity Employer attracting and recruiting
the finest people from around the country. We value contribution
of individuals and teams. Individual contributions are recognized
through our reward and recognition program.
Integrity
We uphold our values and Business Ethics principles in every
action and decision. Professional and personal honesty,
dedication and commitment are the landmarks of our success.
Open and transparent business practices are based on ethical
values and respect for employees, communities and the
environment.
Innovation
We are committed to continuous improvement, both in New
Product and Processes as well as those existing already. We
encourage Creative Ideas from all stakeholders.
Corporate Responsibility
We promote Health, Safety and Environment culture both
internally and externally. We emphasize on Community
Development and aspire to make society a better place to live in.

13

DEFINITION
Assets:
Any item of economic value owned by an individual or corporation,
especially that which could be converted to cash. Examples are
cash, securities, accounts receivable, inventory, office equipment, real estate, a
car, and other property.

Liability:
An obligation that legally binds an individual or company to settle a debt. When one
is liable for a debt, they are responsible for paying the debt or settling a wrongful act they
may have committed.
For example: if John hits Jane's car, John is liable for the damages to
Jane's vehicle because John is responsible for the damages.

Owner Equity:
Ownership interest in a corporation in the form of common stock or preferred stock.

Income Statement:
A financial statement that measures a company's financial performance over a specific
accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating
activities.

'Profit and Loss Statement (P&L):

A profit and loss statement (P&L) is a financial statement that summarizes the revenues,
costs and expenses incurred during a specific period of time, usually a fiscal quarter or
year.

Gross profit:
Gross profit is the amount of revenue that a company brings in before subtracting the
expenses associated with that revenue. It is reported on the classified income statement.
It's different from operating profit, which is actually gross profit minus operating
expenses. It's also different from net profit, which is operating profit minus taxes and
interest.
Formula: Gross Profit = Net Sales - Cost of Goods Sold

Balance Sheet:
A financial statement that summarizes a company's assets, liabilities and shareholders'
equity at a specific point in time. These three balance sheet segments give investors an
idea as to what the company owns and owes, as well as the amount invested by
shareholders.

Current Asset:
An asset listed on the balance sheet with less than a 12-month life, or that is
readily convertible into cash to be used to satisfy current liabilities. Examples of current
assets are cash on hand, short-term investments, accounts receivable, and inventory.
14

Noncurrent Asset:
An asset which is not easily convertible to cash or not expected to become cash within the
next year. Examples include fixed assets, leasehold improvements, and intangible
assets. Opposite of current asset.

Current liabilities:
A company's debts or obligations those are due within one year. Current liabilities
appear on the company's balance sheet and include short term debt, accounts
payable, accrued liabilities and other debts.

Noncurrent Liabilities:
A business's long-term financial obligations that is not due within the present accounting
year. Examples of noncurrent liabilities include long-term borrowing, bonds payable
and long-term lease obligations.

Tangible Asset:
Assets having a physical existence, such as cash, equipment, and real estate; accounts
receivable are also usually considered tangible assets for accounting purposes. opposite
of intangible asset.

Intangible Asset:
Something of value that cannot be physically touched, such as
a brand, franchise, trademark, or patent. opposite of tangible asset.

PROFIT AND LOSS ACCOUNT

For the year ended 2015
Net 913,094,3
sales
77
Cost of products sold
(889,515,2
Gross
profit
23,579,1
10
Other income
14,023,9
58
Operating
costs
Distribution
and marketing expenses
(9,018,5
Administrative
expenses
04)
Other(2,400,8
operating expenses
24)
(14,932,1
16)
Profit
from operations
22,670,9
52
Finance costs
(11,016,5
11,654,3
Share99
of profit of associates - net of tax
Profit
before
379,3 taxation
12,033,7
48
Taxation
(5,097,3
Profit
for the year
6,936,3
64

25

1,187,639,3
16
(1,150,815,2
28) 36,824,0
88
19,517,6
74

26
27
28
29
30

(8,395,76
9)
(2,084,16
5)
(3,890,06
1)
41,971,7
67

31

32,427,6
58
32,969,1
87
(11,151,05
2)
21,818,1
35
2014

6.3.1
32
Note

2015

Pie chart:

15

BALANCE SHEET:
For the year ended 2015

16

Bar Chart:

Owner Equity

Liabilities

Assets

PSO
0

100000000 200000000 300000000 400000000

What is SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. In which Strength and Weaknesses are related with internal
environment of the organization and Opportunities and Threats are
related with external environment of the organization.

PSO SWOT Analysis:

1. Strengths:
Market Share of 70% is one of the main strength of PSO.
Company reputation in the industrial sectors adds the
strengths for PSO.
Product quality is also strength especially in industrial
sector.
Service quality like plastic cards and non-fuel activities adds
the value.
Financial Stability with strong reserves, paid-up capital adds
the trust of stakeholders.
Relations with Government one of the key strength of PSO
in order to get legal protections.

2. Weaknesses:
Lost & Dissatisfied customers are major weakness of PSO as
they are causing the perception of in efficient PSO.
Old retail outlets are major weakness for PSO as they are
not enough capable to compete the Shell, Caltex or Total
outlets.
Untrained staff at outlets is causing inefficient services.
Quality assurance is not so effective to build the image of
Quality & Quantity.

3. Opportunities:

Afghanistan's Market is the biggest opportunity for OMCs in

Pakistan.
17

 De-regularities of Oil industry in Pakistan add the

opportunity to fill the deficiency in few sectors of
petrochemicals markets.
Export Opportunities of Black Oil Products is also adding the
opportunities by exporting Black Oil products, which is
facing downfall due to the introduction Gas Oil.
Industrial & Trade growth in Pakistan is also the opportunity
for PSO as they are adding revenues in Power sector that is
the major customer of PSO.

4. Threats:
Risk of forward integration of Supplier is the key threat for
PSO and other OMCs in Pakistan. As the example, the
PARCO who is one of the main POL product suppliers to
OMCs adopt the forward integration strategy by introducing
its own OMC with its new business alliance TOTAL and
named its OMC as TOTAL-PARCO.
Risk of forward integration of Supplier is the key threat for
PSO and other OMCs in Pakistan. Risk of diversification in
new technology is also a key threat to PSO as new
technology is leading to decline in its products.
Substitutes in Black Oil Market are causing a solid reason
for the declining trending Black Oil Products, which is major
threat for PSO.

Official Website Link:

http://www.psopk.com/
History Link:
http://www.psopk.com/en/about-us/our-history
PSO House
Khayaban-e-Iqbal, Clifton, Karachi 75600, Pakistan
UAN: 021-111 111 PSO (776)
Tel: (92 21) 99203866-85
Fax: (92 21) 99203835
Ta'aluq Careline: 0800-03000
Email: Taaluq@psopk.com

18

TABLE OF CONTENTS
TOPIC

PAGE No:

CALTEX
Introduction ........................................................................19
History ................................................................................19
Board of Director .................................................................20
Vision Statement.................................................................20
Mission Statement...............................................................20
Values..................................................................................20
Profit & Loss Account...........................................................21
Balance Sheet .....................................................................22
SWOT Analysis.....................................................................23

19

20

Caltex Oil Company

Caltex Oil Pump

Caltex Oil Tanker

21

INTRODUCTION
Caltex has operated in the sub-continent since 1938 and
established its subsidiary Caltex Oil (Pakistan) Limited (COPL) in
1947. Apart from the main oil storage facility at Karachi, COPL has 13
Depots throughout the country.
COPLs Retail network consists of over 500 outlets located in all
Headquarter towns and most strategic locations. COPL also has a
Distributors network which caters to the demands of the Industrial as
well as the Agricultural sector. It has recently installed their first CNG
facility at the Company managed retail outlet at Islamabad.
COPL is the only Oil Marketing Company which operates its own
tank truck fleet in major cities of the country. This arrangement
guarantees not only supply reliability but meets the customer
requirements of quality and quantity of product.

HISTORY
Chevron Pakistan Limited (formerly known as Caltex Oil Pakistan
Limited) is a part of Chevron Corporation (earlier known as
ChevronTexaco Corporation), a leader in the global integrated energy
business. Chevron is the fifth-largest integrated energy company in the
world. Headquartered in San Ramon, California, and conducting
business in approximately 180 countries, this highly competitive
corporation is engaged in every aspect of the oil and natural gas
industry, including exploration and production; refining, marketing and
transportation; chemicals manufacturing and sales; and power
generation. With a diverse and highly skilled global work force of more
than 59,000 employees, Chevron and its people take great pride in a
commitment to community partnerships, social responsibility and
environmental excellence. Chevron Pakistan Limited has operated in
the sub-continent since 1938 and apart from the main oil storage
facility at Karachi, has 10 Depots throughout the country, which
includes three inland terminals in Rawalpindi, Machike and Shikarpur.
The companys Retail network consists of 598 outlets located
throughout the country as well as a wide spread distributor network
catering to the demands of the Industrial, as well as the Agricultural
sectors. Chevron installed its first CNG facility at its Company managed
retail outlet at Islamabad. Subsequently, more CNG facilities have been
added to the network in Karachi and Lahore increasing the number of
CNG refueling facilities to 66 nationwide. In addition, Chevron has also
established three CNG conversion kit centers.
Caltex began in 1936 as the California Texas Oil Company, a joint
venture between the Texas Company (later named Texaco)
and Standard Oil of California (later named Chevron Corp.) to market oil
from newly gained concessions in Saudi Arabia. It was renamed Caltex
Petroleum Corp. in 1968. (As an interesting side note: in the Vincent
22

Price movie 'The Last Man on Earth' released in 1964--he gets his gas
from a Caltex tanker.----). The two parent companies merged in 2001 to
form ChevronTexaco (renamed Chevron in 2005) and Caltex remains
one of its major international brand names
Caltex is a petroleum brand name of Chevron Corporation used in
more than 60 countries in the Asia-Pacific region, the Middle East and
Southern Africa. Caltex began in 1936 as the California Texas Oil
Company, a joint Venture between Texas Company (later named
Texaco) and Standard Oil of California (later named Chevron Corp) to
market oil from newly concessions in Saudi Arabia.

Board of Directors:
Mr. Farooq Rahmatullah Chairman

Mr. Aftab Husain - Managing Director & CEO

Mr. Mumtaz Hasan Khan Director

Vision:
For Caltex to be the service station brand of choice in the Eastern
Cape, known for consistently excellent and friendly service and for
being committed to involvement in the communities it serves One
brand, one image, one service level

Mission:
To continuously deliver shareholder value by:

To create a universally excellent service experience across all

Caltex outlets in the Eastern Cape

To support and grow the people of Caltex in the Eastern Cape

23

To continually invest in infrastructure for a safer, brighter, cleaner

and more convenient environment for our customers and the
environment in which we operate

To invest in the Eastern Cape economy and support local suppliers

To support carefully selected local initiatives and organizations

that help to build future leaders through education and sport.

Values:
We are committed to deliver sustainable excellence in business
performance by focusing on the following:

Benefit our shareholders

Realise the potential of our people
Meet our customer requirements
Maximise refinery margins
Safeguard asset integrity
Deliver structural cost reductions
Sustain a robust management system
Deliver continuous sustainable Health, Safety, Security and
Environmental excellence

PROFIT AND LOSS ACCOUNT

For the year ended 2015

24

Pie Chart:

25

BALANCE SHEET
For the year ended 2015

26

BAR CHART:

Owners Equity

Liabilities

Assets

SHELL
0

10000000

20000000

30000000

40000000

CALTEX SWOT Analysis:

1. Strengths:
Barriers of market entry
High growth rate
Skilled workforce
High profitability and revenue.
2. Weaknesses:
High loan rates are possible
Future profitability
Costs
Competitive market.
3. Opportunities:
New acquisitions
Growing economy
New markets
Income level is at a constant increase
Growing demand
New products and services.
4. Threats:
Global economy
Growing competition and lower profitability
Financial capacity
Government regulations
External business risks
Unexpected problems.

27

Official Website Link:

http://www.caltex.com.au/AboutUs/Pages/default.aspx
History Link:
http://www.caltex.com.au/AboutUs/Pages/OurHistory.aspx

Address:
CALTEX OIL (PAKISTAN) LTD.
1st Floor State Life Bldg.#11 Abdullah Haroon Road, Karachi 74400, Sindh, Pakistan
Phone: 9221-111666111 / 5681371 / 5681281
Fax: 9221-5685014 - See more at:

28

TABLE OF CONTENTS
TOPIC

PAGE No:

SHELL
Introduction ........................................................................28
History ................................................................................28
Board of Director .................................................................28
Vision Statement.................................................................29
Mission Statement...............................................................29
Values..................................................................................29
Profit & Loss Account...........................................................30
Balance Sheet .....................................................................31
SWOT Analysis.....................................................................32

29

30

Shell Oil Company

Shell Oil Pump

Shell Oil Tanker

31

INTRODUCTION
Shell Pakistan Limited (SPL) is a subsidiary of Royal Dutch
Shell and has been in South Asia for over 100 years. Shells flagship
business in Pakistan is the downstream retail marketing company, Shell
Pakistan Limited, which has interests in downstream businesses
including retail, lubricants and aviation.
Shell Pakistan has a primary listing on Karachi Stock Exchange. It
is also listed on Lahore and Islamabad Stock Exchange.

HISTORY
Royal Dutch Petroleum Company spent almost 12 years exploring
oil and getting production under way before being registered as an
enterprise in 1890. In February 1892 these efforts were rewarded by
crude oil flowing from the companys wells in the north Sumatran
jungles. The remote location of these wells required Royal Dutch
Petroleum to emerge as an integrated oil company from well-head to
consumer, exporting its products around Asia. To do this, Royal Dutch
Petroleum reached an agreement with merchant trading company M
Samuel & Co to operate the Asian arm of their transportation business.
The fleet formed an integral part of Shells entrance into Asian oil
market by shipping kerosene in bulk from Russia via the Suez Canal. In
1897, the venture was incorporated as Shell Transport and Trading
Company. In 1907 Royal Dutch Petroleum Company merged with Shell
Transport and Trading Company. Though the two companies originated
from different positions Royal Dutch as an upstream producer and
refiner, and Shell Transport a midstream transporter and wholesaler of
oil because both companies were focused on Asian markets, they
were able to combine their marketing operations in Asia to form a joint
venture called Asiatic Petroleum.
Shell Pakistan Ltd. is a public sector company primarily engaged
in oil and lubricants marketing. Until March 1993, Shell operated in
Pakistan as Pakistan Burma Shell Ltd. Then Burma Castrol sold its 24%
stake in PBS to Shell International Petroleum plc. This increased Shell
Internationals stake to 49% and after buying 2% from the local market,
they increased it to 51% and took over PBS and renamed it Shell
Pakistan Ltd.

BOARD OF DIRECTORS
Michael Noll Chairman

32

 Farrokh K Captain - Managing Director

& CEO

Rahat Hussain Director

VISION:
To be the most competitive and innovative Downstream Oil
Marketing Company

MISSION:
To continuously deliver shareholder value by:

Manufacturing and supplying oil products and services that satisfy

the needs of our customers
Constantly achieving operational excellence
Conducting our business in a safe, environmentally sustainable
and economically optimum manner
Employing a diverse, innovative and results-oriented team
motivated to deliver excellence

Values:
We are committed to deliver sustainable excellence in business
performance by focusing on the following:

Benefit our shareholders

Realise the potential of our people
Meet our customer requirements
Maximise refinery margins
Safeguard asset integrity
Deliver structural cost reductions
Sustain a robust management system
Deliver continuous sustainable Health, Safety, Security and
Environmental excellence

33

PROFIT AND LOSS ACCOUNT

For the year ended 2015

Pie Chart:

34

BALANCE SHEET
For the year ended 2015

35

Bar Chart:

Chart Title
Owners Equity
Liabilities
Assets
SHELL
0

10000000

20000000

30000000

40000000

SHELL SWOT Analysis

1. Strengths:

The managers regard their sub ordinates.

Main focus of the organization to increase their customers.
Managers are participative approach.
Theirs employees are highly motivated.
They hire local employees.
Mobile training units keep the staff up-to-date.

2. Weaknesses:

Over statement of oil reserves controversy

Ambiguous corporate communications affected marketing
Human Rights and environmental issues degraded image
They are not offering any package to their regular
customers.
They are not offering any bonus package scheme.
Shell has eight regional retail managers. They are
insufficient to handle the problems.
They have no proper shades and sitting arrangement at the
filling stations.
There is no proper drainage system at filling station.

3. Opportunities:
Afghanistan's Market is the biggest opportunity for OMCs in
Pakistan.
De-regularities of Oil industry in Pakistan add the
opportunity to fill the deficiency in few sectors of
petrochemicals markets.
36

 Export Opportunities of Black Oil Products is also adding the

opportunities by exporting Black Oil products, which is
facing downfall due to the introduction Gas Oil.
Industrial & Trade growth in Pakistan is also the opportunity
for PSO as they are adding revenues in Power sector that is
the major customer of PSO.

37

4. Threats:
Shell is an international company so it should
introduce packages.
Company has an opportunity to give special packages to its
employees.
Company has an opportunity to install more CNG as well as
petrol pumps in rural areas of Pakistan.
Acquisitions by buying out competition
Increasing demand for fuel.

Official Website Link:

http://www.shell.com/about-us.html

History Link:
http://www.shell.com/about-us/who-we-are/our-beginnings.html
Address:

Shell headquarters
Carel van Bylandtlaan 16,
2596 HR The Hague,
The Netherlands
Postal address:
PO box 162, 2501 AN The Hague, The Netherlands
Tel. +31 70 377 9111

38

COMPARISON: (PSO, CALTEX, SHELL)

PSO

CALTEX

SHELL

TOTAL ASSETS

341307233

5128534

38678765

TOTAL LIABILITIES

250676173

2595943

32783700

TOTAL OWNER EQUITY

82310296

2532591

5895065

Chart Figure:
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0

PSO

CALTEX

SHELL

Profit of the year:

PROFIT OF THE YEAR

POSITION
39

PSO
CALTEX
SHELL

6936364
1501586
(1067133)

1st
2nd
3rd

Profit Of the year

SHELL

CALTEX

PSO

40

Conclusion:
PSO has a market share of 25% in CNG industry in 2015.It
has shown growth of 15% in 2014 against industry growth of
11% as compared to 2014.
Pakistan State Oil, is gaining its market share, sales as well as the
overall value of the company.
Pakistan State Oil needs to fix, are the current ratio and they need
also to focus on less credit sales, as their payback time is high,
but cash sales should also, be focused due to the factor of seeing
converting sales into cash.
And less credit sales can boost their value of converting sales into
cash.
Moreover, the Gross profit needs to fix as their payback period is
so long, which makes them do credit sales, and credit sales are
making gross profit low.

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