The oil and gas sector of Pakistan is on the rise and working hard to fulfil the national demand. Oil and gas are the two of the key components of the energy mix contributing around 80% share to the 64 million TOE of energy requirement in the country.
Industry is growing very quickly and the drilling activities in the country are going above the average. There were 76 well drilled in the last year and it was never ever seen in the past years to drilled so may wells in a single year.
According to last Economic Survey 2013, Pakistan estimated that there are 27 million barrels of reserves available that are recoverable for the use and Pakistan’s consumption is 19.21 million tones. The average oil production was 66,032 barrels per day in 2013 and it was the growth of around 13% over the last year. There are total 7 oil Refineries, 6772 petrol stations are operating in Pakistan and 258 oil & gas discoveries and 803 wells drilled till now.
The liquidity ratios of Pakistan oil industry is not much efficient as it should need to be. Current ratios give us the sense about the ability of a company to turn its product into cash. The current ratio of industry is decreasing with the passage of time which means the ability of industry to pay its short term liabilities is getting low as compare to past few years. Also the cash ratio of the industry is not much stronger as the industry has to pay high debt to its suppliers.
It means that ratio of cash and marketable securities against current liabilities is very low but cash ratio is increasing with the passage of time and working hard to pay its liabilities. There are several reasons behind lowness of these ratios. The main reason is the high amount debt taken by industry from its suppliers and in order to pay those debts, industry does not have much cash in hand. As per profit of the industry concern, it is increasing with the passage of time.
Profit of oil industry has been increased in the ninth month or 3rd quarter of fiscal year 14 while it was decreasing before. It is come to know that the earning of oil and gas explorers increase by 18% in third quarter of FY14 while in the previous quarter ended in Dec 2013, the earning of the sector declined due to the appreciation of Pak rupee against dollar. Major oil and gas exploration and production companies working in Pakistan include Pakistan Oilfield (POL), Gas development Company and Pakistan Petroleum.
WASHINGTON - International Monetary Fund (IMF) has approved to make available a $1.1 billion loan ...