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SIDRA KHALID

CASE ANALYSIS

BYCO petroleum pakistan Ltd

Country

Pakistan

Date of Incorporation

January 9, 1995

Registered Under

The Companies Ordinance 1984.

Location

Status

Chief Executive Officer

Registered Address

Mujtaba Jafarey

9th Floor, The Harbour Front, Dolmen City, HC-3, Block-4, Marine Drive, Clifton, Karachi-75600, Pakistan.

Listed Company

Mouza Kund, Hub, Baluchistan, Pakistan

Company name

Marketed products

oil and gas

INTRODUCTION OF BYCO

Byco is Pakistans emerging energy companies engaged in the businesses of oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Headquartered in Karachi, we are serving our mission to fulfill the energy demand within and beyond borders

The company also operates 254 retail outlets. In addition, it provides bulk storages services of petroleum products.

The company was formerly known as Bosicor Pakistan Limited.

Byco Petroleum Pakistan Limited was incorporated in 1995 and is based in Karachi, Pakistan.

It carries out the refining and production of petroleum products.

The company refines crude oil into various saleable components such as high speed diesel, liquefied petroleum gas (LPG), motor spirits, lubricants, high octane blending components, kerosene, jet fuels, furnace oil and naphtha.

The company's product portfolio includes Light Petroleum Gas, Light straight Run Naphtha, Heavy Naphtha, Kerosene, High Speed Diesel, Furnace Oil, Jet Fuel-1, and Jet Fuel-4 It also sells its products in the United Arab Emirates, Taiwan, Oman, India, and Afghanistan

REMARKABLE HISTORY

Byco held Long Service Awards and the Safety Awards ceremony.

Dec 2012, the first ever oil tanker berthed at its newly-established deep sea Single Point Mooring (SPM) facility constructed by BTPL.

Petroleum Pakistan Limited built the largest capacity StoraByco ge Tanks in the country.

OWNERSHIP STRUCTURE

CORPORATE STRATEGY

Manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards to address the environment, health and safety requirements.

CURRENT STRATEGIC DIRECTION

VISION

Our vision is to bea leading energy company through delivering the core business, achieve sustainable productivity and profitability to deliver a superior shareholder return.

MISSION

Our mission is to proactively invest in the development of infrastructure, in order to become a single source supply chain for meeting the economys energy, petroleum and petrochemical needs thereby providing the best possible return to all our stakeholders.

VALUES

Byco values are the guiding principles that define how it conducts its business and what it stands for as a company. This includes:

Setting high standards of care for environment, health and safety.

Investment in human capital, offer competitive employment terms and provide safe and congenial working environment and an equal opportunity for all our employees.

Entail human resource development and promotes openness, professionalism, teamwork and trust.

Enhancing value addition, implementing conservation measures and growth up-gradation through addition of newer generation technologies.

Credibility, goodwill and reputation earned through ethical practices, honesty, integrity and respect for people.

Safeguarding of shareholders' interest and providing them with a consumer rate return on equity is an integral part of our business ethics.

These values are the basis of our commitment to operate as a sustainable energy company.

COMPETITORS OF BYCO:

PSO

SHELL

CALTEX etc

BYCO PESTEL Analysis

According to (Byco), Macro environmental analysis is find out the external forces that affect accompany to produce and sell, which are consisted of Political, Economic, Social, Technological, Legal and Environmental factors that affect externally a business.

Political Analysis:

Political factors refer to government policy such as the degree of intervention in the economy. This might include trading policies, lobbying, inter-countries relations, and that can affect the business.

Economic Analysis:

Economical factors that might affect a business can be world economy or national economy of the environment where the business is running

Technological Factor:

Technology is another environmental and external force that affects a business. In case of Byco, as we can see on many sources of information, such as websites and newspapers, we can find out Byco has the advantage of having advanced technology in deep water exploration of the oil.

Legal factor:

Legal factors are those legislations that affect a business, such as employment law, anti-trust law and etc.

Environmental factor:

Environment is very important and environmental activists are playing more important roles in the business. Sometimes the environmental activist can put pressure to the government and make new legislations

INTERNAL FACTOR EVALUATION MATRIX

WeaknessesWeightRatingW.Scorehigh loan rates are possible0.0820.16Marketing operations lost $95 million in second quarter0.1530.45stop drilling new gas wells in US continent.0.0520.10decrease in revenue.0.1340.52strengthsSkilled work force0.1730.51technology0.1940.76Customer loyalty0.1840.72expansion0.0520.1Total1.003.32

OpportunitiesWeightRatingWeighted Score1Increase usage for energy 0.1540.602Increasing price of energy 0.1230.363Increasing propensity of people to spend 0.1030.304Increasing mobility of labor, capital and technology 0.0940.365Demand shifts for renewable energy 0.1030.30Threats6Depletion of natural energy resources 0.1120.227PSO is rivalry in the industry 0.0840.328Regulations restricted excessive emission of CO2 0.0740.289The credit crisis and volatile commodity prices 0.1030.3010OPEC restrictions, civil wars and hurricanes.0.0820.16Total1.003.2

Critical success factorsweightRatingScoreratingscoreAdvertising0.2030.1230.60Product quality0.1030.3020.20Management0.0740.2830.21Financial position0.1030.2030.30Customer loyalty0.0540.3030.15Global expansion0.2030.6040.80Market share0.0930.2740.36Logistics0.1530.4530.45Production capacity0.0430.6040.16Total1.003.123.23

BYCO PSO

COMPETITIVE PROFILE MATRIX

RATIO ANALYSIS

Ratio Analysisis a form of Financial StatementAnalysisthat is used to obtain a quick indication of a firm's financial performance in several key areas. Theratiosare categorized as Short-term SolvencyRatios, Debt ManagementRatios, Asset ManagementRatios, ProfitabilityRatios, and Market ValueRatios.

LIQUDITY RATIOS

2012CURRENT RATIO QUICK RATIOCASH RATIO0.359000000000000324.3500000000000004E-21.8000000000000026E-22013CURRENT RATIO QUICK RATIOCASH RATIO0.620000000000000995.1000000000000073E-35.1000000000000073E-3

PROFITABILITY RATIO

ROAROEGROSS PROFIT MARGIN -3.1000000000000017E-2-0.1292.5000000000000001E-2ROAROEGROSS PROFIT MARGIN -0.63000000000000045-0.265000000000000018.5000000000000006E-2

EFFICIENCY RATIOS

2012ACCOUNT RECEIVABLE TURN OVERACCOUNT RECEIVABLE IN DAYS ACCOUNTS PAYABLE IN DAYS22.97999999999998615.8790000000000160.792013ACCOUNT RECEIVABLE TURN OVERACCOUNT RECEIVABLE IN DAYS ACCOUNTS PAYABLE IN DAYS79.74.583.16

SOLVENCY RATIOS

2012TIME INTEREST EARNED RATIO DEBT TO EQUITYDEBT TO TOTAL ASSET 0.465.41.19300000000000012013TIME INTEREST EARNED RATIO DEBT TO EQUITYDEBT TO TOTAL ASSET 0.8720000000000014.281.0940000000000001

INVESTORS RATIO

2012DFLEPSDIVIDEND YEILD 0.26-57.4400000000000119E-22013DFLEPSDIVIDEND YEILD 0.67000000000000126-37.4400000000000119E-2

STRENGTH

Increase profitability and revenue

Monetary assistance provided

Reduced labor costs

Barriers of market entry

Different technology

Best quality petrol

SWOT ANALYSIS

Byco announced completion of the country largest oil refinery installation. This newly commissioned petroleum Refinery has an installed refining capacity of 120, 000 barrels per day.

Petroleum Pakistan Limited built the largest capacity Storage Tanks in the country.

The success of Byco industrial lubricants are due to their international quality and customer care, said by Tausef Bari, Chairman Faisalabad Dry Port

The strength of Byco industrial lubricants is in its high product quality.

The state of the art lab facility backed by sales services and technical support to its customers .

Byco Petroleum Pakistan Limited have captured the market share lost by the PSO.

Byco Petroleum Pakistan Limited (BYCO) announced a substantial increase in net sales of 281 percent over the nine-month period ended March 31, 2013. Byco Industries Incorporated (BII) has identified great potential and opportunities in energy sector in this region and has invested in related businesses in Pakistan and United Arab Emirates.

ERP (SAP) software is used together the information.

WEAKNESSES

investments in research and development

Unknown

costshigh loan rates are possible

future profitability may decline due to instable

economic conditions

Costs of environmental hazards

Not well known brand

CHALLENGES

CURRENT CHALENGES OF HR Extending capacity from 30,000 barrels to 115,000 barrels.

Search for organization fitted employee not job fitted.

Recruit more than 300 employees. Time period 2 to 3 months.

Biblography

http://www.brecorder.com/fuel-a-energy/193:pakistan/1167779:byco-organises-seminar-on-industrial-lubricants/?date=2015-04-01

http://www.thenews.com.pk/Todays-News-6-237380-PSO-denies-allegations-of-misleading-customers

http://www.byco.com.pk/index.php?option=com_content&view=article&id=22&Itemid=55

www.byco.com