Financial Analysis of Listed E&P companies of Pakistan

Abstract

The Purpose of this project is to understand the Oil & Gas Sector of Pakistan. This includes the three major industries of this sector: Upstream which has E & P companies, Mid-stream which has refineries and distribution industries and Downstream which includes the oil marketing companies. All these industries are being regulated through government institutions i.e., Petroleum Division under the secretary petroleum. The Project focuses on the Exploration and Production industry of Pakistan which includes OGDCL, PPL, MPCL and POL. These companies are listed companies of Pakistan and major contributor in the stock market of Oil and Gas sector. OGDCL and PPL are majorly state own companies while MPCL and POL are private equity holder companies. These companies explore hydrocarbons from government allotted exploration blocks under the approval of Director General Petroleum Concession (DGPC). The Exploration activities includes seismic survey, drilling, Production and transportation to the refinery or mid-stream industry. All these activities involve approval from regulator at different levels. The market performance and financial performance of the listed companies have been evaluated which clearly shows OGDCL is the leading company followed by PPL, MPCL and POL. The analysis provides the performance of E & P sector of Pakistan in comparison of international leading E & P companies. Where learning curve can be drawn to learn the financial strategies from global E &P global leaders in terms of debt financing. However, international companies are more effected by global events as compared to Pakistani E & P companies.