Analysis of New Zealand Oil and Gas Limited

Topics: Financial ratios, Financial ratio, Petroleum Pages: 13 (3904 words) Published: October 10, 2013
Table of Contents:
1Executive Summary:2
2Products and/or Services:3
3General Company Description:4
4Industry/Sectored Analysis:5
5SWOT Analysis:7
6Porter’s Five Forces Analysis:9
Bargaining power of customers y9
Bargaining power of suppliers9
Threat of new entrants9
Threat of substitute products or services10
Intensity of competitive rivalry10
Summary of Porter’s Five Forces Analysis:10
7Financial Ratio Analysis:11
8Competitors Analysis:14
9Scenario Analysis (Good/ Average/ Poor):15
10Conclusions and Recommendations:17
Appendix A18
Appendix B19
Reference:20

1Executive Summary:
This report attempts to analyze and evaluate the performance and the competition environment of New Zealand Oil and Gas Limited (NZO) and tries to exert the contemporary economic competition strategic theories to provide some constructional suggestions which could lead to create NZO’s competition advantages and healthy strategic development through focusing on the characteristics, strengths, weakness and potential development of NZO. In this report, whether NZO is a worth investing will be discussed by using five methods to analyze, which include SWOT analysis, Porter’s five forces analysis, Financial Ratio Analysis, Competitors Analysis and Scenario Analysis. According to analyzing this company, there are three points that cannot be ignored. Firstly, the result of analysis indicates that The New Zealand Oil and Gas Limited should increase more costs than before because of the dramatically increasing oil price. In this situation, it is negative impact on NZO. Secondly, Although The New Zealand Oil and Gas Limited has a leadership in New Zealand market; it still has relatively low competitive capability in the international market. The main reason is that people in New Zealand have a strong awareness of protecting environment. Therefore, It is hard for NZO to do a lot of oil and gas mining. As a result, NZO can merge and acquire some companies in other countries to improve its status in the international market. Overall, NZO is good enough for a possible investment based on all information we have analyzed.

2Products and/or Services:
The New Zealand Oil and Gas Limited explores and develops oil and gas fields, and produces petroleum products and natural gas. Being the New Zealand’s major oil and gas company, New Zealand Oil and Gas Limited plays a role of leading supplier of petroleum products mainly including three major development projects: Tui oil, Kupe gas/oil and Pike River coal. The NZO established a wide range of production and exploration interests in NZ and Australia. Major NZ interests were the Ngatoro field (35.4%), the Kupe field (16.5%), a number of exploration prospects (onshore and offshore Taranaki), and the Pike River coal resource (72%). (New Zealand Oil and Gas Limited, 2012). Also, New Zealand Oil and Gas Limited has made crucial progress in identifying new opportunities in Indonesia and Tunisia.

3General Company Description:
According to New Zealand Oil and Gas Limited (2013), it listed in 1981 after a public issue of 40 million shares at 50 cent each. In 2009, NZO changed its CEO; the name of new CEO is Peter Griffiths (NZ Oil & Gas Directors and Staff, 2013). The New Zealand Oil and Gas Limited is the leading supplier of petroleum products in the New Zealand market. The annual report also presents that in 2013, there were seven major shareholders, whose shares held exceeded 10 million. Compared with the shareholders in 2013, there were only four main shareholders who had more than 10 million shares (NZ Oil & Gas Annual reports, 2013). The most significant changes in shareholders is JPMorgan Chase Bank, who had 10.80% of the issued capital in 2012, but had only 3.65% of it in2013, dropping from the 1st place to the 4th place (NZ Oil & Gas Annual reports, 2012). There were also director changes from 2011 to 2013. Prof R F Meyer retired from the...
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