Bahria University Islambad Campus Pakistan

MASTER IN BUSINESS ADMINISTRATION

(1A)

Submitted By :

Arslan Khalid 01-120161-003

Submitted To:

Ms. Saher ZeastFinancial Accounting

Introduction:Shell Pakistan Limited (SPL) is a subsidiary of Royal Dutch Shell Plc and has been in South Asia for over 100 years. Shell’s flagship business in Pakistan is the downstream retail marketing company, Shell Pakistan Limited, which has interests in downstream businesses including retail, lubricants and aviation

Shell Pakistan has a primary listing on Karachi Stock Exchange. It is also listed on Lahore and Islamabad Stock Exchange.

History:Royal Dutch Petroleum Company spent almost 12 years exploring oil and getting production under way before being registered as an enterprise in 1890. In February 1892 these efforts were rewarded by crude oil flowing from the company’s wells in the north Sumatran jungles. The remote location of these wells required Royal Dutch Petroleum to emerge as an integrated oil company from well-head to consumer, exporting its products around Asia. To do this, Royal Dutch Petroleum reached an agreement with merchant trading company M Samuel & Co to operate the Asian arm of their transportation business. The fleet formed an integral part of Shell’s entrance into Asian oil market by shipping kerosene in bulk from Russia via the Suez Canal. In 1897, the venture was incorporated as Shell Transport and Trading Company. In 1907 Royal Dutch Petroleum Company merged with Shell Transport and Trading Company. Though the two companies originated from different positions – Royal Dutch as an upstream producer and refiner, and Shell Transport a midstream transporter and wholesaler of oil – because both companies were focused on Asian markets, they were able to combine their marketing operations in Asia to form a joint venture called Asiatic Petroleum.

Shell Businesses/Stakeholders:Shell Pakistan 

Lubricants Retail Pakistan Refinery Limited. (PRL) Pak Arab Pipeline Co. (PAPCO)

Management:Farooq Rehmatullah succeeded David M Weston in 2001, to become the first Pakistani national CEO of SPL. He retired in 2006. SPL Managing Directors

Farooq Rehmatullah – April 2001-June 2006

Quentin D’Silva – May–August 2006

Zaiviji Ismail bin Abdullah – September 2006-July 2011

Sarim Sheikh – April 2011-July 2012

Omar Y Sheikh – June 2012 – present

On June 17, 2012, Omar Y Sheikh became the new Country Chair/Managing Director for Shell Pakistan Limited. Omar has worked for Shell since 1995 in Retail, Commercial Lubricants and Downstream

Strategy Portfolio roles. Omar also worked at Shell Internationals Ltd. In London with senior Downstream leadership on developing business strategy and implementing portfolio transactions. In his current role as MD, he is also General Manager Lubricants.

Board of Directors

Omar Y Sheikh (Chairman)

Rafi H Basheer

Farrokh K Captain

Chong Keng Cheen

Imran R Ibrahim

Nasser N S Jaffer

Zaffar A Khan

Michael Noll

Haroon Rashid

Badaruddin F Vellani

Shell Oil Company Annual Reports:

Statement of IncomeShell Oil Company

For ended Year 2012, 2013, 2014

Revenue   421,105 451,235 467,153

Share of profit of joint ventures and associates 6,116 7,275 8,948

Interest and other income 4,123 1,089 5,599

Total revenue and other income   431,344 459,599 481,700

Purchases   327,278 353,199 369,725

Production and manufacturing expenses   30,038 28,386 26,215

Selling, distribution and administrative expenses   13,965 14,675 14,465

Research and development   1,222 1,318 1,307

Exploration   4,224 5,278 3,104

Depreciation, depletion and amortization   24,499 21,509 14,615

Interest expense 1,804 1,642 1,757

Income before taxation   28,314 33,592 50,512

Taxation 13,584 17,066 23,552

Income for the period 14,730 16,526 26,960

(Loss)/income attributable tonon-controlling interest   (144) 155 248

Income attributable to Royal Dutch Shell plc shareholders   14,874 16,371 26,712

Balance SheetShell Oil Company

For Year Dec 31, 2013,2014Assets      Non-current assets      Intangible assets 7 7,076 4,394Property, plant and equipment 8 192,472 191,897Joint ventures and associates 9 31,558 34,613Investments in securities 10 4,115 4,715Deferred tax 16 8,131 5,785Retirement benefits 17 1,682 3,574Trade and other receivables 11 8,304 9,191    253,338 254,169Current assets      Inventories 12 19,701 30,009Trade and other receivables 11 58,470 63,638Cash and cash equivalents 13 21,607 9,696    99,778 103,343Total assets   353,116 357,512Liabilities      Non-current liabilities      Debt 14 38,332 36,218Trade and other payables 15 3,582 4,065Deferred tax 16 12,052 11,943Retirement benefits 17 16,318 11,182Decommissioning and other provisions 18 23,834 19,698    94,118 83,106Current liabilities      Debt 14 7,208 8,344Trade and other payables 15 64,864 70,112Taxes payable 16 9,797 11,173Retirement benefits 17 377 382Decommissioning and other provisions 18 3,966 3,247    86,212 93,258Total liabilities   180,330 176,364Equity      Share capital 20 540 542Shares held in trust 21 (1,190) (1,932)Other reserves 22 (14,365) (2,037)Retained earnings   186,981 183,474Equity attributable to Royal Dutch Shell plc shareholders   171,966 180,047Non-controlling interest   820 1,101Total equity   172,786 181,148Total liabilities and equity   353,116 357,512