PSO is Pakistan's largest oil marketing company with over 3,000 employees and a network of 3,689 petroleum filling stations. It holds a 54.8% market share in the petroleum industry. PSO's main competitors are Shell, Attock Petroleum, and Hascol Petroleum. The document provides an analysis of PSO's financial position compared to competitors and evaluates their relative strengths and weaknesses. It also gives recommendations such as focusing on high margin products, improving transportation, and finding stable oil supply sources.

1. Competitive analysis
Pakistan State oil
Group members:
Ijaz M Mughal
Khuram Manzoor
Shakeel Ali
Ali Hamza
Hamid Iqbal

2. Contents

4. Business
profile
PSO
Location
Pakistan State Oil Company
Limited
PSO House, Khayaban-e-Iqbal,
Clifton
Karachi-75600, Pakistan
Financial facts
Revenue: 993,289 millions (2018)
Earning per share 50
Net income
17,286 million (2018)
Key people
Imran ul Haque
(Managing Director and CEO)
Mujahid Eshai
(Chairman)
Products
Motor gasoline (Mogas), high-
speed Diesel (HSD), furnace oil
(FO),
jet fuel , kerosene oil,
Compressed natural gas (CNG),
petrochemicals and lubricants

5. Business
profile
PSO
Employees
Over around 3,000 employees
Competitors
Shell, Attock, Caltex etc
Outlets
It has a network of 3,689
petroleum filling stations
35000 outlets serve public retail
189 as wholesale bulk customers
Market share
PSO holds 54.8% share in
petroleum industry

6. Financial position
Company
Market
Capital
Enterprise
value Revenue Gross profit Net Income EPS
Cash From
Operations
Capital
Expenditure Free Cash Flow
PSO 97,944 234,306 993,289 39,071 17,286 50 -36,635 -1,573 -38,208
APL 46,428 38,362 170,185 9,846 5,650 68 5,688 -1,676 4,012
SPl 296,651 366,716 366,716 56,992 18,267 2 32,737 -21,328 11,409
HPl 51,969 47,060 153,808 5,806 1,394 11 2,619 -3,599 -980

7. Customers
Bargaining power of buyers is low they cannot compete with
industry prices.
Large number of customers.
Indutry Demanding better quality and high performance.
Major buyers:
SUI northern gas
Water and power development
Kot Addu Power Co.
K-Electric Ltd.
Threat of New Entrants
Threat to new entrants is low
Barriers to entry is very high
Existing competitors becoming stronger
Substitute Products
Threat of substitute product was moderately low.
Natural gas is a substitute of heavy furnace oil and
diesel
Coal is another substitute of furnace oil
Suppliers
Bargaining power of suppliers is high
Number of suppliers is low
Pakistan Refinery
Oil & gas development
Industry Rivalry
Competitors are not of same size and magnitude
Hold 54.8 % of shares of the market.
Threat of competitors is moderately high
Product is not unique but brand recognition plays
vital role to sustain in industry

8. Top competitors

10. Top Competitors of PSO
Hascol Petroleum Limited (HPL) is a fully integrated Oil Marketing Company
(OMC) engaged in the marketing and distribution of petroleum products through
its Petrol Pumps and to industrial customers. Hascol is the 4th largest OMC in the
country in terms of market share and the second largest importer of fuels in the
country after PSO. The Company has a Retail Outlet network of more than 300
throughout Pakistan.
Shell is the Dutch company and it has been in south Asia for 100 years. Shell
have 850 retail stations in more than 330 cities. They grew from a small shop
in London nearly 200 years ago. In Pakistan, Shell is the second largest OMC
and employs 400+ people directly and over 12,000 indirectly. Shell Pakistan
has an efficient retail network of strategically located 780+ sites and enjoys
the highest brand share preference amongst peers.

11. Top Competitors of PSO
Attock Petroleum Limited is Pakistani oil marketing company based in Rawalpindi, Pakistan.
It started its operations in 1998. It has filling stations in Khyber Pukhtunkwa, Punjab and
Sindh. It also provides CNG at selected stations. Other facilities include tire shop,mosques,
and resting areas. Attock Petroleum Limited (APL) is the 4th Oil Marketing Company in
Pakistan. sectors. APL is the only oil marketing company in Pakistan belonging to a fully
vertically integrated group covering all aspects of the Oil and Gas sector of Pakistan; from
exploration, production and refining to marketing of a wide range of petroleum products.
Offering a broad spectrum of petroleum products and having over 600 retail outlets.
Caltex is a petroleum brand name of Chevron Corporation used in more than 60 countries in
the Asia-Pacific region, the Middle East, and Southern Africa. Total PARCO Pakistan Ltd. today
formally acquired Chevron Pakistan Limited, whose name will change to Total Parco
Marketing Limited (TPML). In the coming months, TPML will convert its fuel stations to the
colors of Total PARCO. The acquisition will increase Total PARCO’s network to 765 stations,
making Total PARCO the 3rd largest oil marketing company in Pakistan

12. Internal Constraints

13. External Constraints

14. Competitive Profile Metrix
Based On General Management Prospective
Keuy Success factors
Weighting
s PSO Hascol Attock Shell
Rating Score Rating Score Rating Score Rating Score
Financial Position 0.10 4 0.40 3 0.30 4 0.40 3 0.30
Management 0.10 3 0.30 2 0.20 2 0.20 2 0.20
Local Filling Stations 0.11 3 0.33 2 0.22 2 0.22 4 0.44
Customer Loyality 0.11 4 0.44 3 0.33 3 0.33 3 0.33
Foreign Filling Station 0.10 2 0.20 3 0.30 4 0.40 3 0.30
Employees 0.07 3 0.21 3 0.21 3 0.21 1 0.07
E-commerce &
Technology 0.10 3 0.30 3 0.30 2 0.20 3 0.30
Advertisement 0.10 2 0.20 1 0.10 1 0.10 4 0.40
Product & Price
Competition 0.10 4 0.40 3 0.30 2 0.20 2 0.20
Market Share 0.11 4 0.44 2 0.22 2 0.22 3 0.33
Total 1.00 32 3.22 25 2.48 25 2.48 28 2.87

15. Based on General Product Perspective
Keuy Success factors
Weighting
s PSO Hascol Attock Shell
Rating Score Rating Score Rating Score Rating Score
Petrol 0.20 4 0.80 2 0.40 2 0.40 2 0.40
Deisel 0.20 3 0.60 3 0.60 3 0.60 3 0.60
Mobile Oil 0.10 2 0.20 2 0.20 2 0.20 4 0.40
Investments 0.20 3 0.60 2 0.40 3 0.60 3 0.60
Total Assets 0.20 4 0.80 3 0.60 2 0.40 3 0.60
No. of Employees 0.10 3 0.30 2 0.20 3 0.30 2 0.20
Total 1.00 19 3.30 14 2.40 15 2.50 17 2.80

16. SWOT & TWOS

17. Financial Analysis

18. •
Market Capitalization
Enterprise Value
Revenue
Gross Profit
EBIT
Net Income,
EPS
Cash from Operations
Capital Expenditures
Free Cash Flow
2016
Market Capitalization
Enterprise Value
Revenue
Gross Profit
EBIT
Net Income,
EPS
Cash from Operations
Capital Expenditures
Free Cash Flow
Market Capitalization
Enterprise Value
Revenue
Gross Profit
EBIT
Net Income,
EPS
Cash from Operations
Capital Expenditures
Free Cash Flow
20182017
102,007
201,384
677,940
22,525
13,519
10,254
31
4,368
-1,280
3,088
105,238
187,650
878,147
37,199
27,836
18,215
56
-22,684
-1,377
-24,061
97,944
234,306
993,289
39,071
26,377
17,286
50
-36,635
-1,573
-38,208

29. Recommendations
• Launching new marketing initiatives like quality and service plus loyalty cards to protect its
position in the retail fuel product categories.
• PSO has done very well in the financial sector, since its new vision period will continue with
the pace. Innovations and updating of the outlets in accordance with the needs of the changing
world is a very important step towards both marketing and financial prosperity.
• Optimizing product portfolio with greater focus on high margin product such as auto
lubricants, CNG and LPG.
• There should betterment in the quality of transportation system and increase the number of
vehicles for availability of oil into distance places.
• To eliminate the misconception that Shell as a foreign company is providing better quality oil.
PSO should do something about it like printing brochures about the sources of oil available in
Pakistan.
• Finding a stable oil supply source (backward -integration) in future.