Financial Management

 OGDCL is the national oil & gas company of Pakistan.  Established in 1961 .  Listed on all three stock exchanges in Pakistan  First Pakistani E&P company listed on the London Stock Exchange  The government of Pakistan owns 85.02% of the shares of the company

 To find the current liquidity position of OGDCL and trends of its ability to meet maturing debts  To analyze the changes in the asset management ratios over the years.  To reveal the equity and debt financing ratio and ability to pay its debt obligations.  To check the profitability ratio trend over the period  To review OGDCL’s past performance and future prospects for the investors

Focus on trends analysis only. Deficiency of cross sectional analysis. Absence of Inter industry comparison .  Reliance upon the provided secondary data

Main source of data collection [www.ogdcl.com] By Reference of the accounts department of the company. Net searching

Trend analysis. Cross-sectional analysis. Ratio analysis.

Profitability ratios Liquidity ratios Activity ratios Debt ratios Market ratios

Ratio in

2003

2004

2005

2006

2007

%

54

57

63

64

57

66 64 62 60 58 56 54 52 50 48

73 72 71 70 69 68 67 66 2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

Ratio in %

2003

2004

2005

2006

2007

46

44

45

48

46

49 49

48

48

47

47

46

46

45

45

44

44

43

43

42

42 2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

%

26

25

31

39

36

45 40 35 30 25 20 15 10 5 0 2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

%

32

29

40

49

45

60

60

50

50

40

40

30

30

20

20

10

10

0

0

2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

%

34

34

47

56

49

60

60

50

50

40

40

30

30

20

20

10

10

0 2003

2004

2005

2006

2007

0 2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

Times

6.82

12.17

4.96

6.51

6.16

14

14

12

12

10

10

8

8

6

6

4

4

2

2

0

0 2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

Times

7

7

9

10

8

12

12

10

10

8

8

6

6

4

4

2

2

0 2003

2004

2005

2006

2007

0 2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

%

56

57

70

82

80

90 80 70 60 50 40 30 20 10 0

100 80 60 40 20 0 2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

Ratio in

2003

2004

2005

2006

2007

Times

42

794

8233

6610

137

9000 8000 7000 6000 5000 4000 3000 2000 1000 0

9000 8000 7000 6000 5000 4000 3000 2000 1000 0

2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

2003

2004

2005

2006

2007

4.81

5.21

7.67

10.69

10.61

2003

2004

2005

2006

2007

4.81

5.21

7.67

10.69

10.61

Ratio in $

Ratio in $

Sales revenue:Rs.96.8 billion[over a total increase of 31%] Net Profit:46% billion[over a total increase of 39%] Operating Profit Margin:57% EPS:Rs.10.69 [over a total increase of 39%] DPS:Rs.9.00[increasing trend]

Focus on enhancing production Maintain low cost operations Exploit offshore opportunities Develop in house expertise

?