Financial Analysis of OGDCL & PPL

Abstract

The objective of this project is to analyze the financial statements of Pakistan Petroleum Limited and Oil & Gas Development Corporation and comparatively analyze both the companies financially. Both the companies that are being analyzed are public limited companies in which majority stake is of Government of Pakistan. To analyze the financial statements of both the companies i. e. OGDCL & PPL using balance sheet, income statements items and sol vency ratios. The data was collected through the annual reports and figures issued by both the companies i.e. OGDCL and PPL. In October 1997, the Corporation was converted into a Public Limited Company as Oil and Gas Development Company Limited. Later 300% bonus shares were issuedby capitalizing the accumulated earnings of the Company in September 2003. Company Information -PPL pp~ inherited all the assets and liabilities of he Burmah Oil Company (Pa k'stan Conce ssi ons) Limited and commenced 1st business on July 1952. The Company also operates a Baryte mine in Balochistan province. The Government of Pakistan (GoP) in September 1997 purchased the entire equity interest of Burmah Castrol PLC, formerly Burmah Oil Company, in the Company (Comprising 21 million ordinary shares of Rs.10 each) representing 63.91 percent of the Share Capital thereby increasing i ts holding in the Company to 93.35 percent . After analyzing the overall solve ncy of OGDCL and PP L il can be safely said that the liquidity position of PPL is far more superior and many times better thought off then of OGDCL. OGDCL although has performed well in this fiscal year by increasing sales and stockholders equity but PPL seems to have outperformed them by some margin