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Report Date : |
15.04.2014 |
IDENTIFICATION DETAILS
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Name : |
PAKISTAN PETROLEUM LIMITED |
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Registered Office : |
PIDC House, Dr. Ziauddin Ahmed Road, P.O. Box 3942, Karachi 75530 |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
1950 |
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Com. Reg. No.: |
0000378 |
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Legal Form : |
Public Parent Company |
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Line of Business : |
Subject is engaged in exploration, prospecting,
development and production of oil and natural gas resources |
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No. of Employees : |
3,050 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Pakistan |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
PAKISTAN - ECONOMIC OVERVIEW
Decades of internal political
disputes and low levels of foreign investment have led to slow growth and underdevelopment
in Pakistan. Agriculture accounts for more than one-fifth of output and
two-fifths of employment. Textiles account for most of Pakistan's export
earnings, and Pakistan's failure to expand a viable export base for other
manufactures has left the country vulnerable to shifts in world demand.
Official unemployment was 6.6% in 2013, but this fails to capture the true
picture, because much of the economy is informal and underemployment remains
high. Over the past few years, low growth and high inflation, led by a spurt in
food prices, have increased the amount of poverty. As a result of political and
economic instability, the Pakistani rupee has depreciated more than 40% since
2007. The government agreed to an International Monetary Fund Standby Arrangement
in November 2008 in response to a balance of payments crisis. Although the
economy has stabilized since the crisis, it has failed to recover. Foreign
investment has not returned, due to investor concerns related to governance,
energy, security, and a slow-down in the global economy. Remittances from
overseas workers, averaging about $1 billion a month since March 2011, remain a
bright spot for Pakistan. However, after a small current account surplus in
fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to
deficit in the following two years, spurred by higher prices for imported oil
and lower prices for exported cotton. Pakistan remains stuck in a low-income,
low-growth trap, with growth averaging about 3.5% per year from 2008 to 2013.
Pakistan must address long standing issues related to government revenues and
energy production in order to spur the amount of economic growth that will be
necessary to employ its growing and rapidly urbanizing population, more than
half of which is under 22. Other long term challenges include expanding
investment in education and healthcare, adapting to the effects of climate
change and natural disasters, and reducing dependence on foreign donors.
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Source
: CIA |
PAKISTAN PETROLEUM LIMITED
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Registered
Address |
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PIDC House, Dr. Ziauddin Ahmed Road, P.O.
Box 3942, Karachi 75530, Pakistan |
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Tel # |
92 (21) 111-568-568 |
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Fax # |
92 (21) 35680005,
35682125 |
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Website |
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Address |
House No. 12, Street 72, F-8/3, Islamabad,
Pakistan. |
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Tel # |
92 (51) 2260770, 2250870 |
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Fax # |
92 (51) 2261466 |
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a. |
Nature of Business |
Engaged in exploration, prospecting,
development and production of oil and natural gas resources |
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b. |
Year Established |
1950 |
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c. |
Registration # |
0000378 |
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M/s Ernst & Young Ford Rhodes Sidat
Hyder (Chartered Accountants) |
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Pakistan Petroleum Limited (PPL) was
incorporated in Pakistan in 1950. During the year the Government of Pakistan
(GOP) disinvested its equity equivalent to 15% of the paid-up share capital of the Company through an
initial public offering. The Company was listed on all the three stock
exchanges of Pakistan. |
|
Names |
Designation |
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Mr. Asim Murtaza Khan Mr. Sajid Zahid Mr. Saquib H. Shirazi Mr. Mohsin Aziz Mr. Amer Sheikh Mr. Zain Magsi Mr. Saeedullah Shah Mr. Javed Masud Mr. Javed Akbar |
Chief Executive / Managing Director Director Director Director Director Director Director Director Director |
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Categories |
Percentage (%) |
|
Directors, CEO and their spouses and minor
children Associated Companies, Undertakings and
related parties NIT & ICP Banks, Development Finance Institutions,
Non-Banking Finance Institutions Insurance Companies Modarabas and Mutual Funds Government of Pakistan General Public
Local
Foreign Others |
--- 7.41 0.17 0.57 0.44 1.98 71.06 3.63 0.02 14.72 |
Pakistan Petroleum
Provident Fund Trust Company (Pvt) Limited
Bolan Mining Enterprises
PPL Europe E&P Limited
PPL Asia E&P B.V.
Engaged in exploration, prospecting,
development and production of oil and natural gas resources
3,050
Considering the nature of the Company’s
business, it is impracticable to provide the information regarding capacity.
|
Mainly from U.S.A.,
European Countries, Korea, Taiwan, Singapore, U.K., China, Japan & Canada |
|
Mainly Oil Companies, Refineries, Oil
Marketing Companies |
|
(1) Allied bank
Limited, Pakistan. (2) Askari Bank
Limited, Pakistan. (3) Bank Alfalah
Limited, Pakistan. (4) Bank Al-Habib
Limited, Pakistan. (5) Barclays Bank PLC (6) Citibank N.A. (7) Deutsche Bank AG,
istan. (8) Faysal Bank Limited,
Pakistan. (9) Habib Bank
Limited, Pakistan. (10) Habib
Metropolitan Bank Limited, Pakistan. (11) MCB Bank
Limited, Pakistan. (12) National Bank of
Pakistan. (12) Standard
Chartered Bank, Pakistan. (13) United Bank
Limited, Pakistan. |
Extremely Sound
The sales revenue of Rs. 102.3 billion for
the year was higher by 6.3% compared to Rs. 96.2 billion of previous year,
resulting in increased profitability of Rs. 41.9 billion for the year as
compared to Rs. 40.9 billion during the pervious year. The increase in sales
revenue mainly due to the impact of higher international oil prices and
depreciation of Pak Rupee against US Dollar.
PPL has achieved outstanding success in
expanding its exploration portfolio by embarking upon many new ventures to
augment its reserves base. While pursuing an aggressive exploration programme,
PPL also aims to maintain highest standards of HSEQ by ensuring high standard
results. PPL currently maintains a portfolio of operated and partner-operated
areas with a mix of low to medium and high risk areas, with an upside potential
of discoveries in structural and stratigraphic entrapments, in both
conventional and unconventional reservoirs. Besides the Company also endeavors
to acquire undeveloped and partly-developed reserves. Furthermore, the company
also plans to evaluate prospectivity of deeper potential in its producing
assets.
All Pakistan Petroleum Exploration and
Production Companies Association.(PPEPCA)
|
Currency |
Unit |
Pakistani Rupee |
|
US Dollar |
1 |
Rs. 98.00 |
|
UK Pound |
1 |
Rs. 161.75 |
|
Euro |
1 |
Rs. 134.00 |
Subject Company is well known and directors are
resourceful and experienced businessmen. Payments to creditors are reported as
normal. Subject can be considered for normal business dealings at usual trade
terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.27 |
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|
1 |
Rs.101.10 |
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Euro |
1 |
Rs.83.74 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.