This was an assignment which we had to present in our finals, and had to analyze data by ourselves.

1.  Group:
Fahad Ur Rehman Khan
Zoya Arif
Hadiqa Hanif
Rimsha Tahir
Sama Asif
Mohsin Alam
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2.  The history of PSO starts from mid-70s
 Pakistan Government ambulated three companies:
Esso Eastern, Pakistan National Oil (PNO) and Dawood
Petroleum as part of its reorganization plan.
 It is considered as one of the most successful
mergers in the history of Pakistan.
 The main objective of the Nationalization of POL
Giant was backed by the facilitation of the sensitive
national issue of providing fuel to Defense forces.
 During the war of 1971, the nation suffered from the
problem that no fuel company was interested to
provide fuel to the Armed forces at that and the
sensitivity of the nation was in very crucial condition.
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3.  Than the Federal government decided to
nationalize three petroleum companies along
with management control.
 Pakistan State Oil Company Ltd; is the largest
oil marketing company of Pakistan. It is
engaged in the Storage, Import, Distribution
and Marketing of Petroleum Products,
Petrochemicals, Aviation & Bunker Fuels, LPG
and CNG Dominates the Country’s Fuel and
Energy Need.
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4.  Pakistan State Oil (PSO) is the oil market leader in
Pakistan enjoying
 PSO has 79% share of Black Oil market and 58%
share of White Oil market.
 Largest oil marketing company in Pakistan
 Annual turnover of 6.8 billion $
 Market share of 80% in Black oil
 Market share of 59% in white oil
 Winner of Karachi Stock Exchange top companies award
 First company to become member of world economic
forum
 3700 retail outlets across Pakistan
 Also forefront in humanitarian efforts
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5.  Oil and gas are the two of the key components of
the energy mix contributing around 80% share to
the 64 million TOE of energy requirement in the
country.
 Pakistan estimated that there are 27 million
barrels of reserves available that are recoverable
for the use and Pakistan’s consumption is 19.21
million tones.
 The average oil production was 66,032 barrels
per day in 2013 and it was the growth of around
13% over the last year.
 There are total 7 oil Refineries, 6772 petrol
stations are operating in Pakistan and 258 oil &
gas discoveries and 803 wells drilled till now.
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6.  Profit of oil industry has been increased in the
ninth month or 3rd quarter of fiscal year 14
while it was decreasing before.
 Major oil and gas exploration and production
companies working in Pakistan include
Pakistan Oilfield, Gas development Company
and PSO.
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7.  Shell Pakistan Limited
 Total Parco Pakistan Limited (Now Pak-Arab
refinery)
 Attock Oil Company Limited
 Caltex Oil Pakistan Limited
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14. Analysis Pakistan State Oil Attock Oil Company Limited
Earning Per Share 80.31 65.17
Stock in trade 86,297,218 6,787,904
Sales 1,409,574,264 240,567,960
Net Sales 1,187,639,316 205,162,911
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Pakistan State oil vs Attock Oil Limited
Pakistan State Oil, is easily taking over the Attock Oil Company, as in boosted sales due to the broad inventory of fuel delievery.

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16.  The expenditure incurred during the year was
for the purpose of the Company’s business.
 The business conducted, investments made
and the expenditure incurred during the year
were in accordance with the objects of the
Company.
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17.  PSO has a market share of 22% in CNG industry in
2013. It has shown growth of 13% in 2014
against industry growth of 11% as compared to
2012.
 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.
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18.  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.
 And less credit sales can boost their value of
converting sales into cash
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19.  PSO’s plans to promote PSO’s lubricants range in
the market to further strengthen the company’s
balance sheet.
 PSO future plan entail exploring new markets,
increasing POL sales using innovative ways,
enhancing retail network, expanding lubricant
product range, improved product movement
mechanism in coming years.
 Enhanced focus shall be on operational
streamlining, cost reductions, cash sales,
minimizing product losses, cash sales, improved
quality, quantity testing, joint ventures.
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20.  Rising international crude oil prices amid
fixed absolute margins for the OMCs will
increase working capital requirements and
reduce return on working capital for them.
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