apl ful final
TRANSCRIPT
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ATTOCK PETROLEUM LIMITED
ATTOCK PETROLEUM LIMITED
INTRODUCTION
Attock Petroleum Limited (APL) is an associate company of the Attock Oil Group of
Companies, which is the only fully vertically interated Group in the Oil ! Gas sector of
Pakistan involved in "#ploration ! Production, $efinin ! %arketin& APL's corporate
head office is reistered in Islamaad&
Our Vision
o ecome a world class, professionally manaed, fully interated, customer focused, Oil
%arketin Company, offerin value added *uality and environment friendly products and
services to its customers in Pakistan and eyond&
Our Mission
o continuously provide *uality and environment friendly petroleum products and related
services to industrial, commercial and retail consumers, and e#ceedin their e#pectations
throuh reliaility, economy and *uality of products and services& +e are committed to
enefitin the community and ensurin the creation of a safe, responsile and innovative
environment eared to client satisfaction, end user ratification, employees' motivation
and shareholders value&
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AUTHORIZE CAPITAL
DEFINITATION OF AUTHORIZE CAPITAL
he authori-ed capital of acompany(sometimes referred to as the authori-ed share
capital or the nominal capital) is the ma#imum amount of share capitalthat the
company is authori-ed y its constitutional documentsto issue to shareholders&
he money made y a company from the sale of authori-ed shares of common and
preferred stock& It is measured y multiplyin the numer of authori-ed shares y their
par value&
VALUE OF AUTHORIZED CAPITAL OF COMPANY
Value in 200
75,000,000 ordinary shares of Rs 10 each
Value in 200!
750,000,000 ordinary shares of Rs 10 each
Value in 200"
750,000000 ordinary shares of Rs 10 each
Value in 200#
750,000,000 ordinary shares of Rs 10 each
I$$UED CAPITAL%Issued capital is the value of the shares issued to shareholders& his means the nominal
value of the shares rather than their actual worth& A company may increase its issued
capital y allottin more shares, ut only up to the ma#imum allowed y its authori-ed
capital (i&e& a company.s issued share capital cannot e#ceed its authori-ed share capital)&
/
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$U&$CRI&ED CAPITAL%
0uscried share Capital is nothin ut the share Capital which is issued to the eneralpulic& It is the amount of capital raised y issuin remainin shares to the eneral pulic
after issuance to promoters, vendors and shareholders&
PAID UP CAPITAL%
Paid1up capital is that part of the suscried capital that is collected y the company as a
part payment aainst call up amount& he due part will e collected y the company in
the immediate future&
O$
It is the issued capital which has een fully or partly paid1up y the shareholders&
CAPITAL RAI$IN' TREND$ FROM 200#(200%
Accordin to the aove information) i* is +een anal,-e. */a* */e o1an, /as sa1e
*ren.s in raisin3 ai*al 4ro1 200#(200!56/ereas in 200 */ere is a risin3 *ren. in
issuane o4 s/ares5 Co1an, is in a s*a+le 3ro7in3 on.i*ion5 2espite the stiff
competition, APL manaed to increase its market share in white oil from /&3 durin
the last year to /&453 durin the current year&
RECENT INVE$TMENT$ REVIE6%
he Oil %arketin Companies (O%Cs) also carried the urden of diesel susidy throuh
Price 2ifferential Claim (P2C) on hih speed diesel which increased from $s 4&/ per
liter in 6une /775 to $s 84&78 per liter in 6une /779& As a conse*uence, the companies
faced li*uidity prolems due to pilin up of its workin capital on account of P2C
$/are Cai*al 200 200! 200" 200#
Issue.8$u+sri+e.8Pai.
u ai*al
90)000)000 900)000)000 900)000)000 900)000)000
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receivale from the Government of Pakistan (GOP)&he successful launch of the new
arranements for e#ports to Afhanistan has improved profitaility of the company
despite ma:or loistic difficulties& he company is also facilitatin e#port of naphtha to
the %iddle "ast, ;ar "ast and 0outh Asia& 0use*uent to the year1end, the overnmenthas s*uee-ed O%Cs marin on reulated products, which will affect the profitaility of
the O%Cs and investment plans& APL is not a det1financed company< instead it relies on
e*uity financin&
COMPANY:$ INVE$TMENT TREND$ FROM 200#(200%
200#%
LON' TERM INVE$TMENT$
APL had commitment for lon term investment in (===,899) shares of >ational $efinery
Limited $s& /84&4= million i1e& the whole amount of advance was paid at the end of the
year to et the ownership of the shares&
$HORT TERM INVE$TMENT$
here was no trend of short term investment in /774 like those had een in practise in
previous years in the form of ;C.s&
200"%
LON' TERM INVE$TMENT$
APL has invested in the fully paid ordinary shares of >$L and Attock Information
echnoloy 0ervices Private Limited of $s& 7 each&
>$L ===,899 shares
AI0L ?47,777 shares
200!
?
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LON'TERM INVE$TMENT$
hereare no lon term investments made y APL in the current year due to the sameamount of capital from last three years and ecause of the fact that they have done a hue
invested in >$L and AI0 I> /77=&
$HORT TERM INVE$TMENT$
APL is maintainin its short term investments in /775 in the form of income
funds&
A%@ Income ;und (7/ thousand units at a cost of $s& 77,777 thousands)
60 Income ;und (9 thousand units at a cost of $s& 77,777 thousands)
;urther, another milestone was achieved y commissionin first international retail
outlet at 6alalaad, Afhanistan in >ovemer /775&
200
Company has invested $s& 895,/?= million in associated companies durin the
year&
APL continued its previous year short term investment in A%@ Plus Income ;und
with ,9 (hiher than in /775) thousand units at a cost of $s&/77,777 thousands&
60 Income ;und with ,7=? (hiher than in /775) thousand units at a cost of $s&
77,777 thousands&
o strenthen e#istin network of retail outlets, 8/ pumps were commissioned
durin the year rinin the total numer of operational petrol pumps to /7 as on
6une 87, /779& he company's investment in these pumps stands at $s& /98
million& In addition, 4? retail outlets are currently under construction and an
additional =? are at different staes of securin the necessary licenses&
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DEFINITATION OF RETAINED EARNI'
In accountin, retained earnins refer to the portion of net incomewhich is retained y
the corporation rather than distriuted to its owners as dividends& 0imilarly, if the
corporation makes a loss, then that loss is retained and called variously retained losses,
accumulated losses or accumulated deficit& $etained earnins and losses are cumulative
from year to year with losses offsettin earnins&
O$
$etained earnins are reported in the shareholders' e*uitysection of thealance sheet&
Companies with net accumulated losses may refer to neative shareholders' e*uity as a
shareholders' deficit& A complete report of the retained earnins or retained losses is
presented in the 0tatement of retained earninsor 0tatement of retained losses&
RETAINED EARNIN'$ CALCULATION
$etained earnins are calculated simply with the followin e*uation
VALUE$ IN YEAR 200
RUPEE$ ;0000) 200! 8,78=,/8
;inal dividend B ?73 relatin to (4=7,777)
year ended 6une 87, /775
=
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Issue of onus shares (97,777)
Profit for the year ended 6une 87, /779 /,=?,44/
ransferred to special reserve y
associated companies (84,/=9)
&alane as a* =une >0) 200 #)002)#!!
VALUE$ IN YEAR 200!
RUPEE$ ;0000) 200! >)0>")2?>
VALUE$ IN YEAR 200"
RUPEE$ ;0000) 200#1 as previously reported =8,8
Chane in accountin policy for investment in
associates (?=)
alance as at 6une 87, /774 1 restated =8,794
Profit for the year ,8/,=7=
ransfer to special reserve y an associated company (8,79/)
;inal dividend B 473 relatin to /77?1/774 (/77,777)
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Interim dividend B ?73 relatin to /7741/77= (=7,777)
&alane as a* =une >0) 200" @)">2)"0?
VALUE$ IN YEAR 200#%
RUPEE$
alance as at 6une 87, /77? 1 as previously reported /4/,=9,7
Chane in accountin policy for dividend /7,777,777
alance as at 6une 87, /77? 1 restated 85/,=9,7
;inal dividend B ?73 relatin to /7781/77? (/7,777,777)
Issue of onus shares (77,777,777)Profit for the year ?=7, ??9, =
&alane as a* =une >0) 200# "@>)@>0)!
TREND$ IN RETAINED EARNI'
$etained earnins refer to the portion of net incomewhich is retained y the corporation
rather than distriuted to its owners as dividends&akin /774 as a ase year there is an increase of $s& D7?59// in year /77=, $s&
/?/8=/// in /775 and $s& ?89??=//D in /779 which shows that the retained
earnins increased y /==D 3 in /77=, D?4D3D in /775 and D94&3DD in /779& he
reason for increase in retained earnins is that the trend of net profit is increasin year to
year& "ven there is increase in dividend in each year e#cept in /775 ut still there is
increase in retained earnin due to increase in net income&
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If we compare retained earnin on year to year asis then, D/==3D is increase in /77= as
compare to /774& DD94& is increase in retained earnin in /775 as compare to /77=and
DD=?&5 3 is increase in /779 as compare to /775&&his shows that there is hih increase
in retained earnin in /77= as compare to previous year& here is increase in /775 ut
that is not as hih as it was in /7741/77=&0imilarly,there is increase in retained earnin in
/779 ut less then previous year /775 & this show there is increase in retained earnin utkeep on decreasin as compare to previous years and that is due to increase in dividends
amount&
EARNIN' PER $HAREE
"arnin per share is ased on earnins after preferred dividends i&e&, on the net income
availale to common shareholders&
Earnin3 er s/are Ne* Ino1e
Co11on s/ares ou*s*an.in3
"arnin per share (/774) F ?=7?79777 ?7777777
F $s&4
"arnin per share (/77=) F 8/=7=777
?7777777
F $s8?&9
"arnin per share (/775) F 5/9=7777
?9777777
F $s8=&7
"arnin per share (/779) F //=?44777
?9777777
F $s44&78
TREND$ IN EARNIN' PER $HARE
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+e are takin /774 as a ase year& here is an increase /8&8 times in /77=, a decrease of
&/ times in /775 and an increase of &7/ times in /779 which shows that earnin per
share increased y 87/&? 3, decreased y 8/&93 in /775 and increased y ?55& 3 in
/779& here is an increase in net income of the shareholders every year so "P0 increases&
EARNING PER SHARE
0
20
40
60
2005 2006 2007 2008
YEARS
Rs EARNING PER
SHARE
PRICE PER EARNIN' RATIO%
he priceearnin ratio shows how much investors are willin to pay per dollar of
reported profit&
Prie er earnin3 ra*io Prie er s/are
Earnin3 er s/are
Price per earnin (/774) F 7
&4
F 7&9=9 times
Price per earnin (/77=) F 7
8?&9
F 7&/95 timesPrice per earnin (/775) F 7
8=&7
F 7&/55 times
Price per earnin (/779) F 7
44&78
F 7&9 times
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TREND$ IN PRICE PER EARNIN'
+e are takin /774 as a ase year& here is an decrease of 7&49 times in /77=, a
decrease of 7&7 times in /775 and an increase of 7&7= times in /779 which shows that
price per share decreased y 88 3 in /77=, decreased y 8/ 3 in /775 and increased y
/ 3 in /779&here is an increase in "P0 of the shareholders every year so P"
decreases&
Price per Earning
0
0.20.4
0.60.8
1
2005 2006 2007 2008
Years
Times
Price per Earning
CA$H FLO6 PER $HARE
Cas/ 4lo7 er s/are Ne* Ino1e 8 Dereia*ion
Co11on s/ares ou*s*an.in3
Cash flow per share (/774) F ?=7?79777 H 8/97777
?7777777
F $s/&88
Cash flow per share (/77=) F 8/=7777 H 44594777
?7777777
F $s?&95=
Cash flow per share (/775) F 5/9=7777 H =8?/9777
?9777777
F $s?&//
Cash flow per share (/779) F /=?44777 H 5595777
?9777777
F $s5&
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TREND$ IN CA$H FLO6 PER $HARE
+e are takin /774 as a ase year& here is a decrease of 5&?85 times in /77=, an
increase of 7&7?= times in /775 and an increase of /& times in /779 which shows that
cash flow per share decreased y 8&= 3, increased y 8&3 in /775 and increased y
45&5 3 in /779& here is an increase in net income and depreciation of the shareholders
every year so C;P0 increases&
Cash f!" per share
0
5
10
15
2005 2006 2007 2008
Years
Rs Cash f!" per share
PRICE PER CA$H FLO6%
he pricecash flow shows how much investor is willin to pay per dollar of cash flow&
Prie er as/ 4lo7 Prie er s/are
Cas/ 4lo7 er s/are
Price per cash flow (/774) F 7
/&88
F 7&9/ times
Price per cash flow (/77=) F 7
?&95=
F /&747 times
Price per cash flow (/775) F 7
?&//
/
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F /&78 times
Price per cash flow (/779) F 7
5&
F &?7= times
TREND$ IN PRICE PER CA$H FLO6
+e are takin /774 as a ase year& here is an increase &/8 times in /77=, a decrease of7&7 times in /775 and an decrease of 7&=/ times in /779 which shows that price per cash
flow increased y /4/&? 3, decreased y /47&3 in /775 and decreased y 58 3 in
/779& here is an increase from /77=1/775 ut suddenly due to increase in cash flow per
share so price per cash flow decreases&
Price per Cash f!"
0
0.5
1
1.5
2
2.5
2005 2006 2007 2008
Years
Times
Price per Cash f!"
&OOK VALUE PER $HARE%
he ook value is a record of the past, showin the cumulative amount that stockholders
have invested, either directly y purchasin newly issued shares or indirectly throuh
retain earnins&
&ooB alue er s/are To*al Co11on Eui*,
Co11on s/ares Ou*s*an.in3ook value per share (/774) F 78794777
?7777777
F $s/4&8/
ook value per share (/77=) F /7?4=777
?7777777
F $s4&?
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ook value per share (/775) F 44849?777
?9777777
F $s4&88
ook value per share (/779) F 878=/8777
?9777777
F $s=8&/4=TREND$ IN &OOK VALUE PER $HARE
+e are takin /774 as a ase year& here is an increase /4&9/ times in /77=, an increase
of =?& times in /775 and a decrease of 4/&79 times in /779 which shows that ook
value per share increased y /7& 3, increased y ?44&?3 in /775 and decreased y
/?&9 3 in /779 as compared to /774& here is an increase in total common e*uity of the
shareholders from /7741/775 which results in increase in ook value per share and
decreases in /779&
#!!$ %a&e per share
0
50
100
150
2005 2006 2007 2008
Years
Rs #!!$ %a&e per share
MarBe* *o +ooB ra*io MarBe* rie er s/are
&ooB alue er s/are
%arket to ook ratio (/774) F 4=
/4&8/
F//&?5 times
%arket to ook ratio (/77=) F 454
4&?
F&/? times
%arket to ook ratio (/775) F 47
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4&88
F4& times
%arket to ook ratio (/779) F 87/
=8&/4=
F?&55 times
TREND$ IN &OOK VALUE PER $HARE+e are takin /774 as a ase year& here is a decrease &/? times in /77=, a decrease of
=&8 times in /775 and an decrease of 7&8? times in /779 which shows that market price
per share decreased y 47&7 3, decreased y //&53 in /775 and decreased y /&// 3 in
/779 as compared to /774& here is an increase in /774 and decrease in /77=1/775 and
suddenly increased in /779&
'ar$e( price per share
0
5
10
15
20
25
2005 2006 2007 2008
Years
Times
'ar$e( price per
share
RETURN ON COMMON EUITY%
he ratio of net income to total common e*uity measures the return on common e*uity ($O")
after ta#es and interest&
Re*urn on Co11on Eui*, Ne* Ino1e aaila+le *o Co11on $*oB /ol.ers @00
Co11on Eui*,
$eturn on common e*uity (/774) F ?=7?79777 77
F ?4&?? 3
$eturn on common e*uity (/77=) F 8/=7=777 77
/7?4=777
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F =9&75 3
$eturn on common e*uity (/775) F 5/9=7=777 77
44849?777
F 8&// 3
$eturn on common e*uity (/779) F /=?44/777 77
878=/8777 F 9=& 3
TREND$ IN RETURN ON COMMON EUITY
+e are takin /774 as a ase year& here is an increase of //&=8 3 in /77=, a decrease of
8=&94 3 in /775 and an increase of 44&553 in /779 which shows that return on common
e*uity increased y ?&97 3, decreased y =9 3 in /775 and increased y &?8 3 in
/779& here is a decrease in /775 ecause there is a decrease in net income of the
shareholders& In all other years there is an increase in the return on common e*uity
ecause the net income is increasin&
R)E
0
20
40
60
80
100
2005 2006 2007 2008
Years
% R)E
RE$ERVE$J$eserve means an account with a credit alance, often a component of shareholders'
e*uity, ut more often a liaility or an asset contra&K
T,es o4 Reseres
Oera*in3 resere ;OGM resere) or 7orBin3 ai*al resere