WELCOME

Class of AFS-2010 by Zain Javed, CFA

TOPIC
ANALYSIS OF FINANCIAL
STATEMENTS OF OGDCL, POL & PPL
(2008-2010)
Group Members
•M Ali Khan Shamsher
•Sufyan Faridi
•Zeeshan Iqbal
•M Wasiu
•Zubair
•Mohsin

Class of AFS-2010 by Zain Javed,CFA

Benchmark: OGDCL
MARKET CAPITILIZATION & BALANCESHEET SIZE

 OGDCL (Mil) ₨ 578,087.8 ₨ 228,867.7

 PPL (Mil) ₨ 253,311. ₨ 107,579.6

 POL (Mil) ₨ 78,107.5 ₨ 41,835.4

LAYOUT
 Vertical Analysis
 RATIO Analysis
 Cash Flow Analysis
 DuPont Analysis
 SWOT Analysis
 Recommendation

Class of AFS-2010 by Zain Javed,CFA

Profit & Loss Account Items 2007-08 2008-09 2009-10

Sales 100 100 100

Field expenditure 23.38 21.37 30.48

Royalties 12.07 12.12 11.8

Share of profit in Bolan
Mining Enterprises -0.12 -0.11 -0.1

Other operating income -6.64 -6.63 -4.3

Finance costs 0.15 0.15 0.26

Other operating expenses 4.56 5.04 4.28

Taxation 23.49 23.07 18.69

Profit after taxation 43.11 44.99 38.89

  100 100 100

Vertical Analysis 2007-08 2008-09 2009-10
Balance Sheet Items  
Property, plant and equipment 34.72 41.93 38.75
Intangible assets 0.3 0.25 0.35
Long-term investments 2.92 2.24 1.68
Long-term deposit   0.74 0.59
Long-term receivable   0.03 0.01
Long-term loans - staff 0.02 0.01 0.01
Stores and spares 2.63 2.26 1.92
Trade debts 21.68 33.5 28.64
Loans and advances 0.93 0.5 0.14
Trade deposits and short-term prepayments 0.29 0.39 0.3
Accrued financial income 0.35 0.37 0.17
Current maturity of long-term investments - 0.37 0.03 0.21
Current maturity of long-term receivable 0 0.02 0.02
Other receivables 0.01 0.12 0.1
Short-term investments 33.99 15.94 25.37
Cash and bank balances 1.79 1.67 1.74
Total 100 100 100
Share capital 12.37 10.01 9.25
Reserves 59.17 66.04 65.02
Provision for decommissioning obligations 4.61 4.79 5.12
Liabilities against assets subject to finance leases 0.13 0.12 0.08
Deferred liabilities 1.41 1.19 1.06
Deferred Income   0.01  
Deferred taxation 0.06 0.17 1.13
Trade and other payables 20.06 16.25 16.93
subject to finance leases 0.07 0.06 1.13
Taxation 2.12 1.36 0.19
Total Shareholders' Equity and Liabilities 100 100 100
Balance Sheet Items 2007-08 2008-09 2009-10
Property, plant and equipment 216 355 426
Intangible assets 194 222 401
Long-term investments 1,302 1,355 1,319
Long-term deposit   100 102
Long-term receivable     21
Long-term loans - staff 96 81 75
Stores and spares 142 166 183
Trade debts 344 723 802
Loans and advances 315 231 84
Trade deposits and short-term prepayments 61 110 111
Accrued financial income 4,174 6,039 3,613
Current maturity of long-term investments 66 7 66
Current maturity of long-term receivable - 4 4
Other receivables 22 250 259
Short-term investments 508 324 669
Cash and bank balances 43 54 73
Total Assets 241 327 425
Share capital 110 121 145
Reserves 393 596 761
Provision for decommissioning obligations 168 238 336
Liabilities against assets subject to finance leases 118 152 134
Deferred liabilities 179 206 236
Deferred income   100 55
Deferred taxation 100 354 3,113
Trade and other payables 273 301 407
subject to finance leases 163 1,674 4,394
Current maturity of deferred income - 100 271
Taxation 234 204 36
Total Shareholders Liabilities 241 327 425
Profit & Loss Account Items 2007-08 2008-09 2009-10

Sales - net 259 349 339

Field expenditure 171 210 292

Royalties 282 382 362

Share of profit in Bolan
Mining Enterprises 202 250 216

Other operating income 1,791 2,407 1,521

Finance costs 365 513 848

Other operating expenses 368 548 453

Profit before taxation 336 462 381

Taxation 439 581 458

Profit after taxation 298 419 352

 Ratios
Ratios OGDCL POL PPL
Liquidity: 2008 2009 2010 2008 2009 2010 2008 2009 2010
Current Ratio 3.7x 4.0x 3.3x 4.2x 3.5x 3.7x 2.8x 3.1x 3.2x
Quick Ratio 0.79 0.38 0.47 0.46 0.48 0.43 0.42 0.39 0.34
Leverage:                  
Debt Ratio 27% 29% 31% 22% 24% 25% 28% 24% 26%
Debt to Equity Ratio 6% 9% 8% 9% 10% 11% 7% 6% 7%
Debt to Total Asset
Interest Coverage Ratio
Profitability:                  
Gross Profit Margin 80% 79% 80% 68% 65% 66% 64% 66% 57%
Net Profit Margin 41% 48% 47% 49% 39% 44% 43% 45% 39%
Operating Profit Margin 68% 67% 67% 52% 41% 48% 60% 61% 53%
Return on Asset 29% 31% 26% 24% 15% 19% 32% 33% 22%
Return on Equity 40% 44% 38% 31% 21% 26% 45% 44% 30%
Efficiency:                  
Total Asset Turnover 0.7x 0.7x 0.6x 0.5x 0.4x 0.4x 0.7x 0.7x 0.55x
Fixed Asset Turnover 1.5x 1.3x 1.2x 0.8x 0.5x 0.6x 1.9x 1.6x 1.3x
 OGDCL POL PPL
2008 2009 2010 2008 2009 2010 2008 2009 2010
Valuation Ratios
Earning Per Share 11.54 12.91 13.76 69.28 19.67 36.76 1.86 1.45 7.52
Market Price Per Share 124.56 78.64 142.00 97.85 88.5 101.1 40 38.84 18.53
Price Earning Ratio 12.06 6.09 10.32 1.41 4.50 2.75 21.51 26.79 2.46
Price to Book Value 0.14 0.88 0.72 0.26 0.30 0.30 0.80 0.89 0.33

Dividend per Share 9.50 8.25 5.50 0.75 0 1.5 1 0 1.25

DuPont Analysis
PPL 2010 2009 2008
NP 39% 45% 43%
TAT 0.55 0.7 0.7
EQM 1.35 1.31 1.40
DuPont
Analysis 0.29 0.41 0.42
Class of AFS-2010 by Zain Javed
Cash Flow Statement For the year ended June 30, 2010 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES Rs (000) Rs (000)
Cash receipts from customers 74,179,219 63 246,960
Receipts of other income 114,082 926,632
Cash paid to suppliers / service providers and employees (14,624,320) (11,698,474)
Payment of indirect taxes and Government levies including royalty (22,100,357) (24,893,580)
Income tax paid (11,054,806) (14,271,868)
Finance costs paid (55,732) (19,944)
Long-term loans - staff 1,797 3,548
Net cash generated from operating activities 26,459,883 13,293,274
CASH FLOWS FROM INVESTING ACTIVITIES    
Capital expenditure (7,862,534) (14,804,293)
(Purchases) / redemption of long-term investments (net) (75,000) 184,249
(Purchases) / redemption of short-term investments (net) (1,174,442) 3,430,304
Long-term deposit (15,000) (615,000)
Long-term receivables 18,443 (10,230)
Share of profit received from Bolan Mining Enterprises - - 25,000
Financial income received 2,457,642 2,982,609
Proceeds on sale of property, plant and equipment 138,215 39,615
Net cash used in investing activities (6,512,676) (8,768,719)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of liabilities against assets subject to finance leases (139,962) (55,087)
Dividends paid (6,472,844) (8,298,505)
Net cash used in financing activities (6,612,806) (8,353,592)
Net increase / (decrease) in cash and cash equivalents 13,334,401 (3,829,037)
Cash and cash equivalents at beginning of the year 14,352,153 18,181,190
Cash and cash equivalents at end of the year 27,686,554 14,352,153
 SWOT Analysis
Strengths: Weaknesses:

 Current Ratio is Comparatively equal with Less Utilization of Asset

other companies

Opportunities: Threats:

Expansion of new fields Decreasing Net profit Margin

High Field Expenses
 Recommendations

 We recommend that PPL should utilize its assets more

Effectively in order to generate sales and increased profit margin

 It should also cut down its Filed expenses.

 Cost of sales is very high comparative to industry, so that it is

recommended that company should cut down its cost of sales