Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A Project on
RATIO ANALYSIS OF
OIL & GAS DEVELOPMENT COMPANY
LIMITED, PAKISTAN
Project Advisor
Prof. FAHAD BASHIR
Department of Business Administration Session 2013-2017
FINANCIAL ACCOUNTING
This write-up has been prepared and submitted to fulfill the partial
requirement for the degree of Business Administration.
Submitted by:
Approved by:
Prof. FAHAD BASHIR
Department of Business administration
NCBA&E JANUARY 06, 2016
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Undertaking:
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Acknowledgments:
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Dedications:
Faria Anwaar
Zeeshan Shahzad
Declaration:
This project is the result of indigenous efforts and this will not be
presented in any other University/Institute for any other degree or
qualification.
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TABLE OF CONTENT
Sr. Pg.
Description
No No
1. Company Profile 6
i. Historical Overview 6
ii. Geographical Presence 9
iii. Product Portfolio 10
iv. Vision 10
v. Mission 11
2. Corporate Information 12
i. Board Of Directors & Their Profiles 12
ii. Future Projects 16
3. Corporate Social Responsibility 17
4. Balance Sheet 18
5. Profit & Loss Account 20
6. Ratio Analysis 21
i. Liquidity Ratios 21
i. Efficiency Ratios 21
ii. Profitability 21
iii. Solvency Ratios (Short And Long Term) 22
iv. Return On Investment Ratios 22
7. Ratio Analysis Solutions With Interpretations 23
8. Conclusions And Recommendations 24
9. Notes To Accounts 25
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1. COMPANY PROFILE
INTRODUCTION
Oil and Gas Development I. HISTORICAL OVERVIEW
Company Islamabad (OGDCL) is Oil and Gas Development Company Limited
the countrys leading provider in commonly known as OGDCL is a Pakistani multinational
Energy and Petrol Sector. This
company came into existence under oil and gas company. It has primary listing on Karachi
an Ordinance on 20th September Stock Exchange, and secondary listings on London,
1961 to ensure the promotion of
Lahore and Islamabad stock exchanges. Established in
Pakistans Oil and Gas products.
In its early days OGDCL has 1961 by the Government of Pakistan, it was turned into a
received loans and grants from
public listed company on 23 October 1997.
various donor agencies like Asian
Development Banks, Canadian
Today it is involved in exploring, drilling, refining
International Development Agency
and the World Bank. and selling oil and gas in Pakistan. It is the market leader
However, the company has in terms of reserves, production and land. It is based on
achieved its place in the developing
companies as between 1968 to 1982 Jinnah Avenue, Blue Area in Islamabad, with the
it discovered May oil fields. The Government of Pakistan holding 74% stake in the
OGDCL is responsible for research
company. Rests are held by private investors.
and development of Oil, Gas and
Energy products in the Country.
It strives to meet the future In 2013, it has revenue of PRs. 223.365 billion and
needs and make explorations profit before tax soaring at PRs. 90.777 billion. It has
throughout the country. The
repeatedly ranked among the Forbes Global 2000. Guided
company is listed in all stock
markets of the Country and also in by its vision and mission, OGDCL is "Exploring to serve
London Stock Market since the Country" by carrying out intensified exploratory
December 2006.
efforts which culminated in a record 2D and 3D seismic
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Moreover, fast track seismic data processing/ interpretation and active drilling campaigns
alongside working diligently for completion of ongoing development projects were limelight of the year.
Going on, the Company is committed to carry on the aggressive exploratory endeavors and accept new
challenges to continue playing a pivotal role in enhancing
Pakistan's energy security and ensure sustainable growth
2015
while safeguarding the business image as a socially Oil and Gas
responsible corporate citizen and safe operator. Development Company Limited
(OGDCL) is the national oil and
On May 4, 2009, the government of Pakistan gas Company of Pakistan and
flagship of the Country's Energy
appointed a Citigroup-led consortium to advise the state-run & Petroleum sector. The
Privatization Commission on the sale of 10 to 15 per cent Company is the local market
leader in terms of reserves,
(or 430 to 645 million shares) of the company. production and acreage.
It was established in 1961
OGDCL is the second Pakistani company to have as a Public Sector Corporation
been listed at the London Stock Exchange. The company is & later converted to a Public
Limited Company in October
also listed in Pakistan at all the three exchanges of the 1997.
country namely Karachi Stock Exchange (KSE), Lahore The Company was listed
on all three stock exchanges of
Stock Exchange (LSE) and Islamabad Stock Exchange Pakistan in October 2003 and its
(ISE). Global Depository Shares
started trading on the London
Stock
OGDCL is exposed to the following operational and Exchange in December
non-operational risks that can unfavorably affect its 2006. Government of Pakistan is
the majority shareholder and
operations and financial performance. owns 74.97% shares of the
Company as at 30 June 2015.
Crude oil price
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Environmental risks
2014
Exploration and drilling risks OGDCL was initially
Exchange rate created under an Ordinance in
1961 as a Public Sector
Law and order Corporation.
Legislation This subsequently in
pursuance of the Petroleum
Reserve Depletion Policy 1994 was converted
from a statutory Corporation
Under performance of oil and gas field
into a Public Limited
Company with effect of 23
The company managed to drill more than one third
October 1997.
of the total wells drilled in the country during 2010. The The Government of
Pakistan owns 74.97% of the
company managed to drill more than one third of the total
shares of the Company as at
wells drilled in the country during 2010. In addition to that, 30 June 2014
OGDCL was also joint venture partner in sixteen wells
drilled by other operators.
During the fiscal year ended June 30, 2006 the Company made several oil and gas discoveries,
including at Nim-1, Dars Deep-1, Tando Allah Yar North-1, Kunnar Deep-1 and Bahu-1. OGDCL's daily
production, including share from joint ventures averaged 39,659 barrels (6,305.3 m3) of oil; 937 million
cubic feet (26,500,000 m3) of gas, and 358 metric tons of liquefied petroleum gas.
The Company holds exploration acreage comprising 40 exploration licenses covering an area of
75,905 square kilometers, including 16 exploration licenses covering an area of 28,066 square kilometers
granted to OGDCL during fiscal 2006. During 2009-2010, the company acquired four new exploration
blocks (Channi Pull, Jandran west, Lakhi Rud and Mari east), covering area of around 4,795 Square
kilometers. Three exploration licenses namely Khiranwala, Thatta and Thatta east were surrendered and
operatorship of offshore Indus-S was transferred to BP Alpha.
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Lease Map
Summary of Leases
Province Operated Non-
Operated
Punjab 13 5
Sindh 48 24
Balochistan 5 -
KPK 3 5
Total 69 34
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Exploration Licenses
Summary of Exploration Licenses
Province/Area Operated Non-Operated
Punjab 15
Sindh 12
Balochistan 24 1
KPK 10 2
Offshore 2 3
Total 63 6
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This represents the largest exploration acreage held by any Energy & Petroleum Company in
Pakistan. Province/area wise breakdown of the Companys exploration licenses is as follows:
OGDCL Development and Production Leases (D&PLs) portfolio comprises sixty nine (69) owned
and operated joint venture D&PLs along with holding working interest in thirty four (34) leases operated
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by other exploration and production companies. These D&PLs are present in the aforesaid four (4)
provinces of the Country. Province wise breakdown of the Companys D&PLs is as follows:
IV.
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V.
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2. CORPORATE INFORMATION
the Punjab.
Has attended various management courses.
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COMPANY SECRETARY
MR. AHMED HAYAT LAK
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AUDITORS
M/s KPMG Taseer Hadi & Co., Chartered Accountants
Legal Advisor
TAX ADVISOR
M/s A.F. Ferguson & Co., Chartered Accountants
BANKERS
Allied Bank Limited
Citibank
Deutsche Bank
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2. FUTURE PROJECTS
Financial
Build strategic reserves for future growth/expansion
Growth and superior returns to all stakeholders
Double the value of the Company in the next five (5) years
Make investment decisions by ranking projects on the basis of best economic indicators
Maximize profits by investing surplus funds in profitable avenues
Reduce cost and time overruns to improve performance results
Learning and Growth
Motivate our workforce and enhance their technical, managerial and business skills through
modern HR practices
Acquire, learn and apply state-of-the-art technology
Emphasize organizational learning and research through effective use of knowledge
management systems
Fill the competency gap within the organization by attracting and retaining best professionals
Attain full autonomy in financial and decision making matters
Customers
Continuously improve quality of service and responsiveness to maintain a satisfied customer
base
Improve reliability and efficiency of supply to the customer
Be a responsible corporate citizen
Internal Process
Evolve consensus through consultative process interlinking activities of all departments
Excel in exploration, development and commercialization
Be transparent in all business transactions
Synergize through effective business practices and teamwork
Have well-defined SOPs with specific ownerships and accountabilities
Improve internal controls
Improve internal business decision making and strategic planning through state-of-the-art
Management Information System
Periodic business process reengineering
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TERMS OF REFERENCE
To meet all obligatory requirements as prescribed under the Petroleum Concession Agreement
(PCA);
To meet non-obligatory projects under OGDCLs CSR Policy viz., education, health, water supply
and sanitation, supply of gas, infrastructure, sports etc., as prescribed under the Companys CSR
policy;
The CSR committee will recommend the annual budget (along with a detailed list of all CSR
related initiatives), at the beginning of each financial year, to the Board of Directors. Any
deviation from this budget can only be made after approval from the Board of Directors;
In the event of an emergency/natural calamity, such as earthquakes, floods etc., the CSR Council
may recommend to the MD & CEO to approve a donation up to PRs 1,000,000/- (Rupees one
million). However, this must be in line with the approved CSR policy of the Company. The Board
of Directors shall be informed of this by circular, to be ratified at its next meeting;
The CSR Committee will review and monitor the progress of ongoing CSR projects on a quarterly
basis. A detailed report will be provided by Manager CSR to CSR Committee and Board of
Directors; and
All activities carried out under the head CSR will be audited by an external auditor (each financial
year) and the audit report will be circulated to the Board of Directors
SHARE PRICE
OGDCLS ORDINARY SHARES ARE LISTED IN PAKISTAN ON THE KARACHI, LAHORE AND THE ISLAMABAD STOCK
EXCHANGES UNDER THE TICKER CODE OGDC. OGDCL ALSO HAS GLOBAL DEPOSITARY SHARES LISTED ON THE
LONDON STOCK EXCHANGE UNDER THE TICKER CODE OGDC.
OIL & GAS DEVELOPMENT COMPANY LIMITED
Jan 1 to Jan 31 2016
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4. BALANCE SHEET
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Royalty
(23,736,702) (29,720,093) (25,899,469)
Operating expenses 25
(52,935,481) (48,833,114) (36,783,454)
Transportation charges
(1,985,814) (2,388,243) (2,250,087)
Other income 26
19,186,191 19,126,253 15,694,460
Exploration and prospecting expenditure 27
(11,627,518) (8,722,796) (14,979,612)
General and administration expenses 28
(4,308,255) (2,964,932) (2,401,627)
Finance cost 29
(2,550,067) (2,204,287) (2,315,324)
Workers profit participation fund
(6,685,550) (9,071,048) (7,726,763)
Share of profit in associate - net of taxation 14.1
1,043,741 113,911 104,892
Profit before taxation
127,025,453 172,349,905 146,808,506
Taxation 30
(39,776,421) (48,435,355) (55,535,887)
Profit for the year
87,249,032 123,914,550 91,272,619
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6. RATIO ANALYSIS
OIL & GAS DEVELOPMENT COMPANY LIMITED
AS AT JUNE 30TH, 2015, 2014 & 2013
2015 2014 2013
LIQUIDITY RATIOS
Quick 219778551 (317476 + 1393408) 194160 (420626 + 1315244) 134247356 (263204 + 1143595)
Ratio/Acid 61901977 48045567 58376592
Test Ratios
EFFICIENCY/ACTIVITY RATIOS
Fixed Asset
210624908 257014254 223365490
Turnover
Ratio 334012768 302072553 279681508
Receivables
Collection
number of days in the year 365 365 365
receivable turnover ratio
Period 1.73 2.54 3.9
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Creditors
Turnover Not Workable Not Workable Not Workable
Ratios
Average
Credit Period Not Workable Not Workable Not Workable
PROFITABILITY RATIOS
Operating
Not Workable Not Workable Not Workable
Profit Ratio 100
100
SOLVENCY RATIOS
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Debt Service
Not Workable Not Workable Not Workable
or Interest
Coverage
Ratio
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Creditors Turnover Ratios
Not Workable Not Workable Not Workable
Average Credit Period
Not Workable Not Workable Not Workable
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PROFITABILITY RATIOS
Gross Profit Ratio 100 62.65% 68.50% 70.92%
INTERPRETATION
Decreasing of the ratio indicates that there is a decrease in sales. In ODGCL scenario we can see that in
2013 it was 70.92% and in 2014 it was 68.50% and in 2015 it was 62.65%.. They were going good in
2013. The decrease in 2015 & 2014 is due to decrease in sales and production.
RECOMMENDATION
They should increase their sales and production in order to cover the gap.
Operating Profit Ratio 100 Not Workable Not Workable Not Workable
Net Profit Ratio 100 41.42% 48.21% 40.86%
INTERPRETATION
Decreasing of the ratio indicates that there is a decrease in sales an increase in taxes. In ODGCL scenario
we can see that in 2013 it was 40.86%and in 2014 it was 48.21%and in 2015 it was 41.42%. They were
going good in 2014. The decrease in 2015 & 2013 is due to decrease in sales and Increase in taxes.
RECOMMENDATION
They should increase their sales and ask government to give rebates on taxes..
100
100 11.26% 11.56% 11.59%
Expense Ratio
100 25.13% 19.00% 16.46%
100 0.94% 0.92% 1.00%
INTERPRETATION
It indicates the portion of sales consumed by various expenses. In ODGCL scenario we can see that in
2013 it the highest portion sales was consumed by operating expenses which is 16.46% and in 2014 it was
again operating expenses 19.00% and in 2015 it was again operating expenses which consumed 25.13% of
sales portion.. They were going good in 2013 though in that transportation and royalty cost was bit high
but it was negligible.
RECOMMENDATION
They should decrease their operating expenses..
SOLVENCY RATIOS
SHORT TERM SOLVENCY
Current Ratio 3:1 4:1 2:1
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INTERPRETATION
As a convention 2 : 1 is considered as satisfactory. It means the assets must be double then liabilities. In
ODGCL scenario we can see that in 2013 it was 2 : 1 and in 2014 it was 4 : 1 and in 2015 it was 3 : 1.
They were going good in 2014. The decrease in 2015 is due to increase in trade & other paybills.
RECOMMENDATION
They should reduce taking money on credit. There is a huge increase in all three year.
Quick Ratio/Acid Test
3.5 : 1 4:1 2.2 : 1
Ratios
INTERPRETATION
As a convention 2 : 1 is considered as satisfactory. It means the quick assets must be double then liabilities.
In ODGCL scenario we can see that in 2013 it was 2.2 : 1 and in 2014 it was 4 : 1 and in 2015 it was 3.5 :
1. They were going good in 2014. The decrease in 2015 is due to increase in current liabilities.
RECOMMENDATION
They should reduce taking money on credit. There is a huge increase in trade & bills in all three year due
to creditors.
LONG TERM SOLVENCY
Debt To Net Worth/Equity
Not Workable Not Workable Not Workable
Ratio
Debt Service or Interest
Not Workable Not Workable Not Workable
Coverage Ratio
Fixed Assets Ratios Not Workable Not Workable Not Workable
Debt To Total Funds or
1:1 1:1 1:1
Solvency Ratio
INTERPRETATION
It indicates the financial position of a company either they can meet their outside obligations in full out of
its own assets or not. In ODGCL scenario we can see that in 2013, 2014 & 2015 the companys financial
position is good and it shows they can fill their outside obligation on their own.
RECOMMENDATION
They should maintain the record in future years and try to improve it more.
Reserves To Capital Ratio 0.17 times 0.15 times 0.13 times
INTERPRETATION
It indicates the financial soundness of the company, that the unit is able to meet future loses when suffered
or the unit can grow, expand & diversify as if they desire. In ODGCL scenario we can see that in 2013,
2014 & 2015 the companys financial soundness in continuously improving which is a good sign.
RECOMMENDATION
They should maintain the reserves and keep up the good work.
Capital Gearing Ratio Not Workable Not Workable Not Workable
Proprietary Ratio 0.09 times 0.08% 0.11%
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INTERPRETATION
It indicates the company is reducing the portion of proprietors and outsiders in financing the business. The
index shows that in 2015 only 9% amount is of proprietors and rest 91% has been supplied by outside
creditors. in 2014 only 8% amount is of proprietors and rest 92% has been supplied by outside creditors.
And in 2013 11% amount is of proprietors and rest 89% has been supplied by outside creditors.
RECOMMENDATION
They should maintain the reserves and keep up the good work.
RETURN ON INVESTMENT RATIOS
Return On Capital &
15% 24% 22%
Employed (ROI)
INTERPRETATION
It indicates the company is reducing the portion of proprietors and outsiders in financing the business. The
index shows that in 2015 only 9% amount is of proprietors and rest 91% has been supplied by outside
creditors. in 2014 only 8% amount is of proprietors and rest 92% has been supplied by outside creditors.
And in 2013 11% amount is of proprietors and rest 89% has been supplied by outside creditors.
RECOMMENDATION
They should maintain the reserves and keep up the good work.
Earnings Per Share 2029 28.81 21.22
8. NOTES TO ACCOUNTS
NOTE: 4
SHARE CAPITAL
Rupees'000
2015 2014 2013
Authorized share capital
fully paid for consideration other than cash 10,752,321 10,752,321 10,752,321
fully paid bonus shares 32,256,963 32,256,963 32,256,963
43,009,284 43,009,284 43,009,284
NOTE: 5
Reserves
Rupees'000
General reserve 2015 2014 2013
Capital reserve 836,000 836,000 836,000
Self-insurance reserve 6,620,000 5,770,000 4,920,000
7,456,000 6,606,000 5,756,000
NOTE: 6
DEFERRED TAXATION
Rupees'000
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NOTE: 7
Deferred employee benefits
Rupees'000
2015 2014 2013
Postretirement medical benefits 8,083,396 6,770,977 3,418,293
Accumulating compensated absences 4,374,519 3,056,584 3,069,806
12,457,915 9,827,561 9,564,797
NOTE: 8
PROVISION FOR DECOMMISSIONING COST
Rupees'000
2015 2014 2013
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NOTE: 9
Trade and other payables
Rupees'000
2015 2014 2013
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NOTE: 11
Property,
plant and
equipment
Rupees'000
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COST
59, 2,0 10, 4,6
Balance as 244 2,1 3,6 1,4 679 564 2,2 4,34 1,82 93,7
419 02, 440 96, 60,
at 1 July ,61 22, 12, 93, ,61 ,98 60, 6,72 8,64 74,5
,87 43 ,90 726 32
2012 5 580 971 534 6 7 628 3 4 59
1 8 2 4
Additions 318 166 388 6,1 11 279 300 49 13,6 22,4
3,9 52, 13, 22, 472,
during the ,60 ,27 ,61 56, 6,9 ,14 ,70 7,2 31,9 20,8
95 437 060 888 157
year 0 9 5 815 09 2 5 43 98 43
Disposals/tr - - - - -
- - - -
ansfers 110 14 4,07 1,25 5,64
- - - - 41, 44 4,7 19, -42 -
during the ,37 0,9 0,69 1,30 2,48
500 0 88 359
year 0 80 6 5 0
-
654
655 79
Adjustments - - - - - - 179 ,43 - - - - -
,41 7
5
1
64, 2,1 10, 5,0
Balance as 248 2,4 3,7 1,8 727 1,5 109 2,2 13,9 1,04 110,
879 15, 609 17,
at 30 June ,61 41, 79, 82, ,44 00, ,74 83, 08,0 9,49 552,
,77 90 ,67 38
2013 0 180 250 149 4 768 4 516 25 6 922
5 7 4 4
64, 2,1 10, 5,0
Balance as 248 2,4 3,7 1,8 727 1,5 109 2,2 13,9 1,04 110,
879 15, 609 17,
at 1 July ,61 41, 79, 82, ,44 00, ,74 83, 08,0 9,49 552,
,77 90 ,67 38
2013 0 180 250 149 4 768 4 516 25 6 922
5 7 4 4
11, 2,9
Additions 527 973 1,4 195 35 18,6 1,30 37,7
190 50, 61, 12, 69,
during the 364 - ,42 ,44 25, ,84 2,6 84,0 8,57 52,6
,95 40 249 490 339
year 4 0 869 8 82 28 2 62
6 1
Revision - -
- - - - - - - - - - - - -
due to 241 241,
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-
630
630 11
Adjustments - - - - - - 189 ,52 - - - - -
,82 1
2
2
38, 1,1 4,0
Balance as 331 1,4 865 8,7 584 1,1 1,1 57,9
121 66, 78, 60, 190,
at 30 June - ,58 40, ,09 53, ,32 96, 57, - 47,6
,91 94 406 62 285
2013 4 527 2 808 9 264 930 96
0 1 0
41, 1,4 4,4
Balance as 1,6 1,3 9,1 632 1,3 1,2 63,2
48, 730 08, 88, 16, 172,
at 1 July - 69, 57, 47, ,64 46, 26, - 44,7
694 ,75 26 677 09 084
2014 085 479 748 4 977 261 73
7 9 8
Charge/(rev -
266 239 4,9 32 608 217 31 - 6,62
ersal) of 2,1 78, 8,9 302
- ,31 ,90 29, 3,3 ,46 ,69 9,5 - 69,1 2,26
charge for 45 107 37 ,38
2 4 190 94 8 9 94 01 8
the year 1
- -
- - - - -
18, 10
On disposals - - - - 45, 2,3 2,9 19, -81 - - - 193,
15 5,0
726 84 91 534 957
6 85
Adjustments - - -45 - - - - 52 45 - -52 - - - -
46, 1,7 4,6
Balance as 1,9 1,5 9,7 707 1,5 923 69,6
50, 614 13, 97, 30, 102,
at 30 June - 35, 97, 53, ,81 45, ,88 - 73,0
839 ,22 50 533 55 983
2015 352 383 832 2 187 0 84
1 7 5
IMPAIR
MENT
Balance as
at 1 July - - - - - - - - - - - - - - -
2013
135
Charge for 135,
- - - - ,00 - 333 - - - - 327 - -
the year 668
8
Balance as 135
135,
at 30 June - - - - ,00 - 333 - - - - 327 - -
668
2014 8
Balance as 135
135,
at 1 July - - - - ,00 - 333 - - - - 327 - -
668
2014 8
128
Charge for 61, 8,7 1,0 199,
- - ,38 - - - - - - - -
the year 204 09 79 378
6
Balance as 128 143
61, 1,0 335,
at 30 June - - ,38 ,71 - 333 - - - 327 - -
204 79 046
2015 6 7
26,
Carrying 248 2,1 2,3 1,0 94 1,8 143 304 95 1,1 13,9 52,6
757 31, 859,
amount - 30 ,61 09, 38, 17, 8,9 55, ,11 ,50 6,7 25, 08,0 05,2
,86 338 211
June 2013 0 596 723 057 66 866 5 4 64 586 25 26
5
Carrying 248 5,3 2,6 3,8 34, 3,6 2,8 151 334 33, 84 418 20,6 1,94 71,8
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amount - 30 ,97 45 05, 85, 206 39, 51, ,91 ,20 557 4,6 ,48 36,8 1,27 03,9
June 2014 4 782 251 ,88 09 735 8 4 30 5 57 5 94
4 7
45, 2,9
Carrying 254 2,3 3,6 5,5 311 240 76 415 44,0 3,81 109,
3,2 617 22, 38,
amount - 30 ,58 40, 58, 65, ,12 ,61 1,2 ,56 41,1 3,44 983,
00 ,93 08 183
June 2015 0 426 831 306 3 8 79 4 69 5 739
0 5
Rates of 421
3.3- 2.5- 2.5- 33. 2.5-
depreciatio - 14. 10 10 15 10 20 - - 0.00
4 8 8 33 10
n (%) 00
NOTE: 12
DEVELOPMENT AND PRODUCTION
ASSETS - intangible
Rupees'000
NOTE: 13
EXPLORATION AND EVALUATION ASSETS
Rupees'000
2015 2014 2013
Balance at beginning of the year 7,913,076 4,811,334 7,530,825
Additions during the year 12,512,724 8,784,888 8,860,761
20,425,800 13,596,222 16,391,586
Cost of dry and abandoned wells during the year -4,850,138 -4,438,935 -8,002,758
Cost of wells transferred to development and production
-9,472,118 -1,244,211 -3,577,494
assets during the year
-14,322,256 -5,683,146 -11,580,252
6,103,544 7,913,076 4,811,334
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Stores held for exploration and evaluation activities 2,035,892 1,724,712 2,463,995
Balance at end of the year 8,139,436 9,637,788 7,275,329
NOTE: 14
LONG TERM INVESTMENTS
Rupees'000
2015 2014 2013
Investment in related party 1,401,173 375,807 331,427
Investments held to maturity 129,792,155 140,017,701 140,085,376
131,193,328 140,393,508 140,416,803
NOTE: 14.1
Share of profit in associate - net of taxation
Rupees'000
2015 2014 2013
Mari Petroleum Company Limited (MPCL)
Cost of investment (22,050,000 (2014: 18,375,000) fully paid
ordinary shares of PRs 10 each including 14,700,000 (2014: 73,500 73,500 73,500
11,025,000) bonus shares)
Post-acquisition profits brought forward 302,307 257,927 221,133
375,807 331,427 294,633
Share of profit for the year - net of taxation 1,043,741 113,911 104,892
Dividend received -18,375 -69,531 -68,098
1,025,366 44,380 36,794
1,401,173 375,807 331,427
NOTE: 14.2
Investments held to maturity
Rupees'000
2015 2014 2013
Term Deposit Receipts (TDRs) 5,862,129 5,345,000 4,920,000
Investment in Pakistan Investment Bonds 52,180,026 52,672,701 53,165,376
Investment in Term Finance Certificates 82,000,000 82,000,000 82,000,000
140,042,155 140,017,701 140,085,376
Less: Current maturity of Term Finance Certificates - 0
129,792,155 140,017,701 140,085,376
NOTE: 15
LONG TERM LOANS AND RECEIVABLE
Rupees'000
2015 2014 2013
Long term loans:
Secured 5,692,868 4,931,060 3,979,115
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FINANCIAL ACCOUNTING
NOTE: 16
STORES, SPARE PARTS AND LOOSE TOOLS
Rupees'000
2015 2014 2013
Stores, spare parts and loose tools 19,251,264 18,903,577 17,229,896
Stores and spare parts in transit 216,764 1,982,914 1,563,751
19,468,028 20,886,491 18,793,647
Provision for slow moving, obsolete and in transit stores -2,620,996 -2,383,569 -2,165,068
16,847,032 18,502,922 16,628,579
NOTE: 17
Trade debts
Rupees'000
2015 2014 2013
Un-secured, considered good 121,411,485 100,510,995 55,874,924
Un-secured, considered doubtful 112,782 112,782 112,782
121,524,267 100,623,777 55,987,706
Provision for doubtful debts (112,782) (112,782) (112,782)
121,411,485 100,510,995 55,874,924
NOTE: 18
Loans and advances
Rupees'000
2015 2014 2013
Advances considered good:
Suppliers and contractors 1,070,013 3,102,805 1,806,067
Joint venture partners 2,463,683 731,317 670,653
Others 3,553,688 3,283,840 3,255,981
7,087,384 7,117,962 5,732,701
NOTE: 19
DEPOSITS AND SHORT TERM PREPAYMENTS
Rupees'000
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FINANCIAL ACCOUNTING
NOTE: 20
OTHER RECEIVABLES
Rupees'000
2015 2014 2013
Development surcharge 80,391 80,391 80,357
Claims receivable 31,504 16,089 606,937
Current portion of long term receivable - unsecured - 150,609 20,266
Workers profit participation fund - net - 346,775 443,282
Others 71,930 67,153 29,652
183,825 661,017 1,180,494
Claims considered doubtful 10,439 10,439 10,439
194,264 671,456 1,190,933
Provision for doubtful claims -10,439 -10,439 -10,439
183,825 661,017 1,180,494
NOTE: 21
INCOME TAX - ADVANCE
Rupees'000
2015 2014 2013
Income tax - advance/(provision for taxation) at beginning of
14,319,141 -2,238,065 -2,421,831
the year
Income tax paid during the year 50,613,873 53,272,836 53,639,424
Income tax recovered by tax authorities during the year 3,942,695 1,374,654 0
Provision for current taxation for the year - Profit and loss - -
-37,279,117
account 52,258,517 42,567,340
Tax credit related to premeasurement loss on employee
retirement
Tax credit related to premeasurement loss on employee
retirement benefit plans for the year - Other Comprehensive 624,129 13,204,249 0
Income
-
Provision for taxation - prior years -8,160,981 963,984
10,888,318
Income tax - advance at end of the year 24,059,740 14,319,141 -2,238,065
NOTE: 22
Other financial assets
Rupees'000
2015 2014 2013
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FINANCIAL ACCOUNTING
NOTE: 23
CASH AND BANK BALANCES
Rupees'000
2015 2014 2013
Cash at bank:
Deposit accounts 12,849,120 2,698,137 2,474,378
Current accounts 110,855 88,952 190,944
12,959,975 2,787,089 2,665,322
Cash in hand 42,773 65,071 44,553
13,002,748 2,852,160 2,709,875
NOTE: 24
SALES - net
Rupees'000
2015 2014 2013
Gross sales
Crude oil 94,317,109 133,629,099 119,046,724
Gas 139,478,446 141,898,570 124,906,242
Liquefied petroleum gas 6,751,228 5,807,851 4,372,696
Sulphur 377,987 577,336 387,761
Other operating revenue 61,771 186,280 93,115
240,986,541 282,099,136 248,806,538
Government levies
General sales tax -21,310,910 -21,557,429 -18,279,304
Gas Infrastructure Development Cass (GIDC) -5,734,982 -
Excise duty -3,315,692 -3,511,180 -3,298,740
Discount on crude oil price 0 0 -707
Development surcharge -49 -
Provincial sales tax - -16,273 0
-30,361,633 -25,084,882 -21,578,751
210,624,908 257,014,254 223,365,490
NOTE: 25
OPERATING EXPENSES
Rupees'000
2015 2014 2013
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FINANCIAL ACCOUNTING
NOTE: 26
Other income
Rupees'000
2015 2014 2013
Income from financial assets
Interest income on:
Investments and bank deposits 16,921,497 18,594,933 11,190,876
Delayed payments from customers 2,493 13,839 965,869
Delayed payments from joint venture partners 0 0 39,105
16,923,990 18,608,772 12,195,850
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FINANCIAL ACCOUNTING
NOTE: 27
EXPLORATION AND PROSPECTING EXPENDITURE
Rupees'000
2015 2014 2013
Cost of dry and abandoned wells 4,850,138 4,438,935 8,002,758
Prospecting expenditure 6,777,380 4,283,861 6,976,854
11,627,518 8,722,796 14,979,612
NOTE: 28
GENERAL AND ADMINISTRATION EXPENSES
Rupees'000
2015 2014 2013
Salaries, wages and benefits 4,710,471 4,088,287 3,739,241
Joint venture expenses 1,013,500 891,573 580,075
Unallocated expenses of technical services 1,323,643 725,013 356,224
Traveling and transportation 327,882 404,166 356,892
Repairs and maintenance 140,200 136,590 136,011
Stores and supplies consumed 123,062 136,192 60,842
Rent, fee and taxes 157,969 107,583 90,314
Communication 47,794 53,094 49,035
Utilities 64,177 65,408 60,316
Training and scholarships 30,359 29,003 22,584
Legal and professional services 44,354 32,152 31,663
Contract services 146,307 124,338 149,061
Auditors remuneration 18,016 19,838 12,468
Advertising 128,898 95,468 129,975
Insurance 3,759 3,315 2,262
Donations 330,000 50,200 -
Depreciation 197,940 199,409 219,246
Miscellaneous 48,818 17,077 21,229
8,857,149 7,178,706 6,017,438
Allocation of expenses to:
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FINANCIAL ACCOUNTING
NOTE: 29
FINANCE COST
Rupees'000
2015 2014 2013
Unwinding of discount on provision for decommissioning cost 2,536,838 2,189,397 2,305,246
Others 13,229 14,890 10,078
2,550,067 2,204,287 2,315,324
NOTE: 30
TAXATION
Rupees'000
2015 2014 2013
Current - charge/(credit)
- for the year 37,279,117 52,258,517 42,567,340
- for prior year 8,160,981 -963,984 10,888,318
45,440,098 51,294,533 53,455,658
Deferred - charge/(credit)
- for the year 706,322 303,381 2,080,229
- for prior year -6,369,999 -3,162,559 0
-5,663,677 -2,859,178 2,080,229
-39,776,421 -48,435,355 -55,535,887
NOTE: 31
EARNINGS PER SHARE - BASIC AND DILUTED
Rupees'000
2015 2014 2013
Profit for the year (Rupees 000) 87,249,032 123,914,550 91,272,619
Average number of shares outstanding during the year
4,300,928 4,300,928
(000) 4,300,928
Earnings per share - basic (Rupees) 20.29 28.81 21.22
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