An Analysis of the Financial Situation of Bp P.L.C
Research and Analysis Report
An Analysis of the Financial Situation of BP P.L.C.
Prepared by Yuehua Song
Actual words: 4,952words
Date: September 2007
content
1.0 INTRODUCTION 2
1.1 Topic Chosen 2 1.2 Reasons for Choosing the Topic 2 1.3 Aims and Objectives 3 1.3.1 Aims 3 1.3.2 Objectives 3 1.4 Sources of Information 6 1.4.1 Annual Reports and Accounts of BP 2002-2006 6 1.4.2 Annual Reports of Shell 2002-2006 7 1.4.3 Analysts’ Reports 7 1.4.4 Newspaper Commentaries 7 1.4.5 The Information Released by In-house Brokers and Financial Advisors of BP 7 1.4.6 General Background Reading 8 1.4.7 Professional Magazines and Journals 8 1.5 Methods Used for Information Collecting 8 1.5.1 Library Reading 8 1.5.2 Website Visiting 9
2.0 ANALYSIS AND PRESENTATION 11
2.1 The Business 11 2.2 SWOT Analysis 11 Strengths 11 Weaknesses 12 Opportunities 14 Threats 14 2.3 Strategic Analysis and Major Features Review (SLEPT) 15 Strategic Analysis 15 Major Features Review (SLEPT) 15 2.4 Financial performance 18 2.4.1 Growth 20 2.4.2 Ratios 22 2.4.3 Investment 27
3.0 CONCLUSIONS 28
1. Strong strategic position with reputation challenge on safety issue 28 2. General financial healthy, challenge the market leader 28 3. Middle to long-term investment 29
Bibliography 30
1.0 INTRODUCTION
1.1 Topic Chosen
For this research and analysis project, Topic 8 “An Analysis of the Financial Situation of BP P.L.C. (BP)” has been chosen as the topic. To assist the study, the Royal Dutch Shell P.L.C. (Shell) is been chosen for a comparison.
1.2 Reasons for Choosing the Topic
One of my friends, an employee of BP, was given a chance to enter the company’s share option saving scheme. He asked me should he take this option or not. After a roughly study I found that BP is the second-largest global oil group of Europe. During the last decade, the company has
An Analysis of the Financial Situation of BP P.L.C.
Prepared by Yuehua Song
Actual words: 4,952words
Date: September 2007
content
1.0 INTRODUCTION 2
1.1 Topic Chosen 2 1.2 Reasons for Choosing the Topic 2 1.3 Aims and Objectives 3 1.3.1 Aims 3 1.3.2 Objectives 3 1.4 Sources of Information 6 1.4.1 Annual Reports and Accounts of BP 2002-2006 6 1.4.2 Annual Reports of Shell 2002-2006 7 1.4.3 Analysts’ Reports 7 1.4.4 Newspaper Commentaries 7 1.4.5 The Information Released by In-house Brokers and Financial Advisors of BP 7 1.4.6 General Background Reading 8 1.4.7 Professional Magazines and Journals 8 1.5 Methods Used for Information Collecting 8 1.5.1 Library Reading 8 1.5.2 Website Visiting 9
2.0 ANALYSIS AND PRESENTATION 11
2.1 The Business 11 2.2 SWOT Analysis 11 Strengths 11 Weaknesses 12 Opportunities 14 Threats 14 2.3 Strategic Analysis and Major Features Review (SLEPT) 15 Strategic Analysis 15 Major Features Review (SLEPT) 15 2.4 Financial performance 18 2.4.1 Growth 20 2.4.2 Ratios 22 2.4.3 Investment 27
3.0 CONCLUSIONS 28
1. Strong strategic position with reputation challenge on safety issue 28 2. General financial healthy, challenge the market leader 28 3. Middle to long-term investment 29
Bibliography 30
1.0 INTRODUCTION
1.1 Topic Chosen
For this research and analysis project, Topic 8 “An Analysis of the Financial Situation of BP P.L.C. (BP)” has been chosen as the topic. To assist the study, the Royal Dutch Shell P.L.C. (Shell) is been chosen for a comparison.
1.2 Reasons for Choosing the Topic
One of my friends, an employee of BP, was given a chance to enter the company’s share option saving scheme. He asked me should he take this option or not. After a roughly study I found that BP is the second-largest global oil group of Europe. During the last decade, the company has
Bibliography: Armstrong. M. (2006). A handbook of Human Resource Management Practice. 10th Edition, London, Kogan Page Castro, N Catanand, T. and Harvey, F. (2005) BP Earmarks $8bn for Green Investment. The Financial Times, November 29 Crooks, E Crooks, E. (2007) BP Seeks More Joint Ventures in Russia. The Financial Times, July 23 Crooks, E Cygnus Business Consulting & Research (2004) ‘Global Oil and Gas’, November, pp.5 en.wikipedia.org Fabozzi, F. J. and Peterson, P. P. 2003. Financial Management & Analysis. 2nd Edition. New Jersey: John Wiley & Sons, Inc. Foster, G. 1986. Financial Statement Analysis. 2nd Edition. New Jersey: Prentice-Hall Hillman, A Holmes, G., Sugden, A. and Gee, P. 2005. Interpreting Company Reports and Accounts. 9th Edition. Essex: Person Education Limited Mautz, R Zittel, W. and Schindler, J. (2003) Future World Oil Supply. http://www.peakoil.net/Publications/International-Summer-School_Salzburg_2002.pdf -----------------------