oil and gas industry final

8/6/2019 Oil and Gas Industry FINAL

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MINI PROJECT 1

RATIO ANALYSIS AND INTERPRETATION OFFINANCIAL STATEMENTS

OIL AND GAS SECTOR

ANOOP C

JIJU MATHEWJOJU MATHEW

SHINAZ V S

SOORAJ K J

Presented by


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OIL AND GAS SECTOR

The oil and gas industry has been

instrumental in fuelling the rapid growth of

the Indian economy. It contributes about45 per cent of the total energy

consumption of the country, and is the fifth

largest energy consumer in the world.


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Companies Taken For Analysis From BT

1.OIL AND NATURAL GAS CORP 1

2.INDIAN OIL 6

3.GAIL INDIA 8

4.BPCL 16

5.HPCL 22

6.MANGALORE REFINERIES 24

7.ESSAR OIL 87

8.PETRONET LNG 128

9.CHENNAI PETROLEUM 183

10.GUJARAT STATE PETROLEUM 234

NAME OF COMPANIES RANK


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RATIOS TAKEN FOR CALCULATION

LIQUIDITY RATIO

1.Current Ratio

2.Acid-test Ratio

3.Inventory turnover Ratio(times)

4.Debtors turnover Ratio(times)

SOLVENCY RATIO

1.Debt-Equity Ratio

2.Total Debt-Equity Ratio

3.Proprietary Ratio

4.Interest coverage Ratio(times)

PROFITABILITY RATIOS

1.Gross profit Ratio(%)

2.Net profit Ratio(%)

3.Operating profit Ratio(%)

4.Operating Ratio(%)5.Return on Assets(%)

6.Return on capital employed(%)

7.Return on Networth(%)

EFFICIENCY RATIO

1.Total Assets turnover(times)

2.Fixed Assets turnover(times)


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RATIOS TAKEN FOR COMPARISON

1.Current Ratio

2.Inventory turnover Ratios

3.Debtors turnover Ratios4.Debt-Equity Ratio

5.Interest Cover Ratio

6.ROCE (%)7.RONW (%)

8.Fixed Assets turnover Ratios


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CURRENT RATIO

Current ratio is defined as the ratio of current assetsto current liabilities. It shows the relationship between totalcurrent assets and total current liabilities.

CURRENT RATIO = CURRENT ASSETSCURRENT LIABILITIES

Higher the current ratio ,the greater is the firms abilityto meet short term debts. An unusually current ratio indicates

funds are not being economically used in the firm. Low currentratio indicates that the firm may have some difficulties in payingoff its debts.

A current ratio of 2:1 is considered satisfactory.


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CURRENT RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 1.47 1.56 1.67 1.37 1.14 1.15 1.22 1.22 1.33

ONGC 1.540501 1.657817 1.603197 1.612968 1.492028 2.117957 1.765594 1.705952 1.627443

INDIAN OIL 1.349274 1.473216 1.670867 1.218868 1.299072 1.267055 1.356914 1.347642 1.274773

GAIL INDIA 0.863338 1.052461 1.117057 1.277677 1.368068 1.172996 1.369257 1.41022 1.70185

BPCL 1.116708 1.21839 1.34784 1.121984 1.038454 0.991841 1.132337 1.413951 1.209023

HPCL 1.192097 1.444354 1.617431 1.275569 1.081844 1.231873 1.359672 1.384052 1.132933

MANGALORE REFINERIES 7.321359 2.944885 0.891193 0.995708 1.337447 1.555915 1.392165 1.515293 1.424887

ESSAR OIL 1.257623 0.904325 0.775022 0.611033 0.565378 0 1.01794 1.046558 1.164403

PETRONET LNG 0 0 0 0.17474 0.074517 3.396424 1.599102 3.305908 1.851938

CHENNAI PETROLEUM 1.16711 1.98191 2.490591 2.129456 1.713457 1.613809 1.606496 1.727379 1.489917

GUJARAT STATE PETROLEUM 2.75199 0.894707 2.158259 2.250783 1.691393 1.856262 1.210064 0.742651 1.007607


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INVENTORY TURNOVER RATIO

Inventory turnover ratio establishes therelationship between cost of goods sold and average

inventory. It shows the rate at which inventories are

converted into sales.

INVENTORY TURNOVER RATIO = NET SALES

INVENTORIES

INVENTORY HOLDING = 365 /PERIOD (INVENTORY TURN OVER RATIO IN TIMES )

A ratio of 6 to 7 times is considered satisfactory.


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INVENTORY TURN OVER

RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 8.73 12.87 15.5 14.91 21.82 16.3 19.75 18.05 16.37

ONGC 9.420881 12.69182 15.20473 15.77257 21.79992 13.33823 19.38071 15.78932 16.7043

INDIAN OIL 9.943285 7.480363 10.90943 9.702121 7.761564 7.829655 7.138265 7.173564 8.762083

GAIL INDIA 29.42259 19.68844 25.76858 24.30052 27.09862 25.14693 28.25189 29.92481 29.03286

BPCL 13.89008 9.733503 12.57681 12.11173 9.806891 11.16133 9.247718 8.351046 11.14813

HPCL 13.66701 7.119528 11.50639 10.97728 9.501931 9.535531 10.61741 9.128176 11.07933


ESSAR OIL 15.09714 12.37298 10.89105 16.422 11.43093 0 7.764059 17.4467 0.138673

PETRONET LNG 0 0 0 0 0 0 15.35812 36.93138 26.24184


GUJARAT STATE PETROLEUM 0 0 0 0 0 0 4896.636 2494.817 2201.913


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DEBTORS TURNOVER RATIODebtors turnover ratio relates net credit sales to sundry

debtors. It measures how fast debts are collected.

DEBTORS TURNOVER RATIO = (NET CREDIT

SALES) / ( DEBTORS INCLUDING BILLSRECEIVABLE )

AVERAGE COLLECTION PERIOD = 365 /

( DEBTORS TURNOVER RATIO )

A shorter collection period indicates prompt payment of

debtors, while a longer period indicates the

inefficiency of credit collection.


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Debtors turnover Ratios 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 11.89 13.54 12.52 9.86 9.71 9.07 12.9 11.4 14.74

ONGC 13.35733 11.51687 13.47825 10.1766 8.701402 13.84401 12.43308 12.95142 20.5243

INDIAN OIL 24.72948 17.93667 23.74662 25.73458 27.13057 29.46344 24.46991 26.00142 32.13258

GAIL INDIA 19.50304 15.15468 14.78484 13.48888 15.98739 16.57097 16.52965 19.19037 20.28125

BPCL 25.5097 32.41745 41.36684 35.88406 51.23739 58.26262 67.72613 57.40091 63.57736

HPCL 49.73841 49.39491 79.2794 50.74046 56.44215 51.50105 57.53365 51.20717 56.86778


ESSAR OIL 1.911722 2.177401 1.30978 2.260292 2.984984 0 10.24025 7.848003 2.680276

PETRONET LNG 0 0 0 0 0 16.25792 30.03656 16.62828


GUJARAT STATE

PETROLEUM - 859 413.5882 - 39.11276 8.491807 14.68257 15.16452 16.77176


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DEBT-EQUTIY RATIODebt-equity ratio shows the relationship between

total debts and owned capital. It is the ratio of th

amount invested by outsiders to the amount

invested by the share holders.

DEBT-EQUITY RATIO=LONG TERM DEBT

NET WORTH( EQUITY

Ideal or standard ratio is taken to be 1 : 1 for publi

sector and 2 : 1 in private sector.


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DEBT EQUITY RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 0.37 0.3 0.2 0.17 0.2 0.34 0.44 0.36 0.3

ONGC 0.336105 0.264648 0.147791 0.118122 0.022391 0.281374 0.21168 0.23578 0.243994

INDIAN OIL 0.820142 1.046407 1.292079 1.245506 0.765802 0.528413 0.666564 0.901089 0.776959

GAIL INDIA 0.477035 0.502088 0.494683 0.454472 0.322934 0.28656 0.231553 0.192169 0.117428

BPCL 0.551732 0.741891 1.019304 0.962816 0.692134 0.459803 0.6076 0.916207 1.05409

HPCL 0.276669 0.502712 0.550321 0.537761 0.204516 0.219662 0.258902 0.762824 1.09573


ESSAR OIL 2.106602 2.373056 2.748664 3.286444 3.670363 ____ 2.126858 2.407073 2.861792

PETRONET LNG 0 0 0 39000 20390 1.390332 1.436558 1.175325 1.08442


GUJARAT STATEPETROLEUM 1.182125 0.901967 0.848171 0.199369 0.069009 0.00807 0 0.210722 0.565885


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INTEREST COVERAGE RATIO

The interest coverage ratio relates the fixedinterest charges to the operating profit or the

earnings before interest and tax. It indicates

whether the firm has earned sufficient profit

to pay periodically the interest charges.

INTEREST COVERAGE RATIO = E B I T /

( INTEREST )


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INTEREST COVERAGE RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 5.15 10.33 22.3 35.64 93.59 115.5 217.18 182.75 228.09

ONGC 6.142088 13.58046 26.76337 45.74391 150.1324 309.5779 539.8688 516.5439 641.6565

INDIAN OIL 4.101504 5.820978 3.465058 4.804844 13.34436 25.56065 14.28762 9.460804 9.513846

GAIL INDIA 18.65629 10.13351 11.84935 11.64179 17.96024 26.21121 29.47371 33.70341 33.08031

BPCL 8.854683 9.295633 7.919522 6.880026 11.00105 31.33773 14.93105 5.743397 8.690261

HPCL 15.16849 11.48311 5.524695 6.912499 20.49889 65.4345 29.15997 6.545429 7.315098


ESSAR OIL 5.151037 4.18638 4.251845 7.830914 7.95614 2.209877 0 -3.13387 -3.69859

PETRONET LNG 0 0 0 0 0 0 1.496846 4.548069 6.395703


GUJARAT STATE PETROLEUM 22.63043 3.544725 3.378519 16.78932 76.04941 58.17236 1921 1749.333 144.841


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RETURN ON CAPITAL

EMPLOYED

The term capital employed refers to long term

funds supplied by the lenders and owners of the

firm. The ratio illustrates how much return is

earned in the form of net profit after taxes out ofthe total capital employed.

RETURN ON CAPITAL EMPLOYED = [ E A T /TOTAL CAPITAL EMPLOYED ] * 100


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RETURN ON NETWORTH ( % )

RETURN ON NETWORTH = [ E A T / NETWORTH ] * 100


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RONW (%) 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 11.61 13.89 18.7 20.13 31.31 23.3 29.49 23.34 20.29

ONGC 11.33941 13.53777 17.25228 20.86677 29.46619 21.35377 27.71466 25.95107 24.75274

INDIAN OIL 18.05241 17.34051 17.09007 18.86281 32.95791 30.63377 18.87004 15.67803 17.90822

GAIL INDIA 25.56895 18.23213 20.55145 22.23247 25.86995 25.12266 22.66769 23.19044 20.94504

BPCL 23.2096 20.1346 20.44301 21.34023 26.2679 28.8048 15.4653 3.170114 17.85042

HPCL 18.06218 18.36862 16.77867 13.36797 23.06101 24.61393 15.43174 4.665546 16.52732

MANGALORE REFINERIES 1.116484 -31.0108 -34.1073 -105.364 -40.2152 31.03437 40.67424 15.53022 19.11752

ESSAR OIL 1.299763 1.852101 0.673421 1.650851 -0.38726 0 0.410426 -3.2197 -2.25332

PETRONET LNG 0 0 0 0 0 0 -3.54268 17.89449 23.77854


GUJARAT STATEPETROLEUM 36.59407 20.09284 18.60496 46.28928 47.9947 35.73087 26.25568 23.46349 15.19578


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FIXED ASSETS TURNOVER

RATIO

FIXED ASSETS TURNOVER RATIO = NET

SALES / FIXED ASSETS

The higher the turn over ratio the more efficient is

the management and the utilization of fixedassets while low turnover ratio indicates under

utilization of available resources and presence

of ideal capacity.


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FIXED ASSET TURNOVER

RATIO 199903 200003 200103 200203 200303 200403 200503 200603 200703

KEY RATIO 0.48 0.61 0.7 0.63 0.89 0.81 1.1 1.04 1.03

ONGC 1.997896 3.103291 3.967959 4.090735 6.350675 1.116137 1.610115 1.354269 1.474593

INDIAN OIL 5.191151 5.667444 6.336428 5.401089 5.029515 5.309741 5.954913 6.959812 6.486233

GAIL INDIA 1.242159 1.486538 1.518859 1.577536 1.811407 1.466622 1.733596 1.913638 2.151301

BPCL 6.038055 7.109219 9.179053 6.83541 7.990835 7.912693 8.268058 7.61627 8.793043

HPCL 6.744985 5.299043 7.53166 6.137307 7.563715 7.831427 8.688578 9.71648 10.17192


ESSAR OIL 0.567657 0.576715 0.433081 0.744006 1.135961 0 6.850102 3.316127 2.324685

PETRONET LNG 0 0 0 0 0 0 1.074806 2.202245 3.351208


GUJARAT STATE

PETROLEUM 5.310811 3.834821 6.747601 14.68502 2.306062 2.761225 2.359153 3.045492 5.441846


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THANK YOU.

oil and gas industry final

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