Financial analysis report OGDCL

Topics: Petroleum, Natural gas, Petroleum industry Pages: 16 (4067 words) Published: January 22, 2015
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Oil & Gas Development Company Limited
Financial Analysis Report
Period coverage: 1st July 2011 to 30th June 2012

Prepared and Presented by:
Dr. Babur Zahiruddin Raza,
Corporate Office
Consultant in Human Resources & Master Trainer in H.R Applications Research ConsultantMr. J. S Khan
IT Consultant Mr. Raheel Rustam
Ph: 051-5584905, 5792836
Cell: 0332 – 4923235
Email: baburzahiruddin@yahoo.com,

TABLE OF CONTENTS

SR no
Description
Page no

1

Financial analysis approach ------------------------------------------

3
2
Key discussion points for AGM---------------------------------------

9

1. FINANCIAL ANALYSIS APPROACH

We have tried to perform holistic and integrated financial analysis of OGDCL with the help environmental analysis, industry analysis, company operational review and annual report.

1.1 Flow chart of analysis approach

2.2 Requisite essential documents for financial analysis

The under mentioned documents are essential to perform comprehensive analysis of financial position, performance and cash position of OGDCL

1. Financial plan-Year 2011 to 2015
2. Audited financial statements-Year 2012
3. Internal audit reports
4. Management letter /. Letter of internal control from external auditors 5. Minutes of board meetings

3. Energy sector analysis

Energy is considered to be the lifeline of economic development. For a developing economy with a high population growth rate, it is important to keep a balance between energy supply and emerging needs. If corrective measures are not effectively anticipated significant constraints start emerging for development activities. The rise in global energy demand has raised questions regarding energy security and increased the focus on diversification, generation and efficient allocation. The answer lies in the attainment of optimal energy mix through fuel substitution by promoting energy efficiency and renewable energy and interregional co-operation. However, oil and natural gas will continue to be the world’s top two energy sources through 2040.

Pakistan’s economy has been growing at an average growth rate of almost 3 percent for the last four years and demand of energy both at production and consumer end is increasing rapidly.

Pakistan’s total energy consumption stood at 38.8 million tonnes of oil equivalent in 2010-11. The relative importance of the various sources of energy consumption of Liquid Petroleum Gas (LPG), electricity and coal has been broadly similar since 2005-06. The share of gas consumption stood at the highest equal to 43.2 percent of the total energy mix of the country, followed by oil (29.0 percent).

3.1 Crude Oil

The total supply of crude oil for the fiscal year 2010-11 was 75.3 million barrels. The 68.1 percent was imported and 31.9 percent was locally extracted.

3.2 Natural Gas

The consumption of increasing natural gas is rapidly. As on December 31st 2011, the balance recoverable natural gas reserves have been estimated at 24.001 Trillion Cubic Feet. The average production of natural gas during July- March 2011-12 was 4236.06 million cubic feet per day (Mmcfd) as against 4050.64 (Mmcfd) during the corresponding period of last year, showing an increase of 4.57 percent. Natural gas is used in general industry to prepare consumer items, to produce cement and to generate electricity. In the form of CNG, it is used in transport sector and most importantly to manufacture fertilizer to boost the agricultural sector. Currently 27 private and public sector companies are engaged in oil and gas exploration & production activities.

3.3 Liquefied Petroleum Gas-LPG

LPG currently contributes only 0.5 percent to the total primary energy supply in the country. However, 87 percent...
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