Preview

Investing Analysis for Royal Dutch Shell vs. British Petroleum

Powerful Essays
Open Document
Open Document
5483 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Investing Analysis for Royal Dutch Shell vs. British Petroleum
INTERNATIONAL FINANCE

INVESTING ANALYSIS FOR:
ROYAL DUTCH SHELL & BP

PREPARED BY:
ARMI ARFIFI BIN AZMI
ATMAN BIN KHAIRULFAZI
MOHD NAZRUL BIN AGOS
MUHAMMAD AMIRUL MUKMIN BIN NOR HIDAN

CONTENTS

PREFACE 3 1.0 INTRODUCTION 4 2.0 COMPANY DESCRIPTIONS 6 2.1 SHELL 6 2.2 BP 7 3.0 PROBLEM DEFINITION 8 3.1 Research Problem 8 3.2 Project Objective 9 3.3 Research Question 9 4.0 PEST ANALYSIS 9 5.0 SWOT ANALYSIS 11 6.0 FINANCIAL ANALYSIS 14 6.1 Pyramid Of Key Ratios 14 6.2 Profitability Ratio 15 6.3 Activity ratios 17 6.4 Liquidity Ratios 18 6.5 Gearing Ratios 19 6.6 Investors Ratios 20 6.7 Return Over Period 21 6.8 Altman Z score. 22 7.0 INTER COMPARISON 25 7.1 Royal Dutch Shell 26 7.2 British Petroleum 28 8.0 INDUSTRY COMPARISON 30 9.0 CONCLUSION & RECOMMENDATION 32 9.1 Conclusion 32 9.2 Recommendation 32 10.0 APPENDIXES 33

PREFACE

As a part of our MLA2 International Finance Analysis, for our assessment we are required to complete this report project on financial analysis of two competing companies with the purpose of finding which company is the best to invest.
We decided to choose oil and gas industry because most world top 10 companies by profit and revenue are from this industry and its much related with our home country, Malaysia. At first we want to pit PETRONAS, a Malaysian oil company with BP but it’s not possible because PETRONAS is a national owned company and not public listed. Thus we change to BP against SHELL.
The material has been compiled from various online sources, mostly from the company’s website itself for the company annual report and financial statement review, as well from finance websites for share performance, market and industry related.
We hope this report will be beneficial to those reading it and especially to Ms. Grotenrath in her decision making the right investment.
We hereby take this opportunity to put on records our sincere thanks to Mr. Matthias

You May Also Find These Documents Helpful

  • Satisfactory Essays

    the main purpose of the report is to provide the year’s financial data, which comes from the corporation’s…

    • 453 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Xacc 280 Final

    • 2014 Words
    • 9 Pages

    We will be comparing two companies; both are strong and have great credibility. Ideally with a solid competitor we want to show differentials and make a solid contrast. In this case we want to compare at least two years of financial data. A great way to exemplify this is to compare Coke to Pepsi. To say which one is better to drink is debatable, but what we are looking at is which is better to invest in. We will analyze the information provided in the appendixes and make a conscience decision as to which company is stronger, therefore a smarter investment choice. After all, I wouldn’t want you to throw your money down the drain.…

    • 2014 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years.…

    • 2784 Words
    • 12 Pages
    Satisfactory Essays
  • Good Essays

    In this report there are vertical analysis and horizontal analysis with these two companies. The comparison between the two companies could be beneficial for an investor who wants to invest their money with either company. Although if a person were to invest in either company they would need to do more extensive searches on their own to know that they are investing in the company wisely.…

    • 1261 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    This analysis will discuss the history of the two companies, explore their differences and similarities (both operational and financial), and assess the risk of owning stock in both companies, as well as derive some predictions about the future of both companies based on the analysis.…

    • 5515 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    Capstone Project

    • 1471 Words
    • 6 Pages

    To make a proper financial analysis of a specific company, you must compare 2 years of financial data, with a good competitor in the same industry. For instance when doing research on the PepsiCo. Inc. company, research must also be done with its well-known competition, Coca-Cola. The examples provided in this paper will show that Coca-Cola as it turns out is better speculation option. All financial data is from Appendices A & B of McGraw Hill Financial Accounting textbook used in XACC 280.…

    • 1471 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Verizon vs Att

    • 1488 Words
    • 6 Pages

    You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.…

    • 1488 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    OUTLINE 1

    • 1373 Words
    • 8 Pages

    Introduction to Financial Analysis for Corporations, 3’rd Edition (dark grey cover), by George W. Blazenko. A hard-copy can be purchased from the SFU bookstore. An electronic version of this manuscript is available free of charge from the course website. Documents…

    • 1373 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    This project has the student select a company from the Dow Industrials Average (there are 30 companies represented in the Dow Industrials) and perform a business analysis of the company and several financial analyses of the company to assess important factors that impact its viability as well as a comparison of the company to a competitor or an industry average.…

    • 831 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Van Heusen

    • 7106 Words
    • 29 Pages

    The history of PVH can be traced back to 1876, when G. H. Bass began his shoe manufacturing company in Maine. Separately, John M. Van Heusen and Isaac Phillips met and formed the Phillips-Van Heusen Corporation, and Vin Draddy acquired the rights to the Izod name in the early 1900s. In 1881, Moses Phillips and his wife Endel began sewing shirts by hand and selling them from pushcarts to local Pottsville, Pennsylvania, anthracite coal miners. This grew into a shirt business in New York City that placed one of the first ever shirt advertisements in the Saturday Evening Post.…

    • 7106 Words
    • 29 Pages
    Powerful Essays
  • Satisfactory Essays

    - Size, Share, Global Trends, Company Profiles, Demand, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2014…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    The oil refining industry poses high barriers to entry and exit due to the high capital investment required. Thus, this industry is oligopolistic in nature and is dominated by only a few large players. In fact, much of the energy industry is ruled by large, vertically integrated oil companies. These companies look after all factors of production, refining and marketing.[1]…

    • 2101 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Gap Case Analysis

    • 3466 Words
    • 14 Pages

    Before going on analyze this case I would like to high light that I had read some extra things from the internet specially from Wikipedia in order to flourish the data will be used in such mission and to get better know about both companies in order to have the right decision to know which company had used the better strategy for the long run to score higher profits. And since any top management who are involved for such decision’s gather as much data as possible about any dilemma faced I have searched the net for more details might help me to take the right decision. Any quotations from the net will be mentioned between inverted commas and if there will be any citations it will be mentioned in its proper place. I Proms that to stick to all data available in the case. Hope my analysis would meet your expectations and not to let you down, If any mistakes or miss understanding in my analysis is because of me and the less efforts I have gave from my time to this great subject thanks a lot Dr. for your efforts with us Khaled shams…

    • 3466 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    Shezan Strategic Analysis

    • 14318 Words
    • 105 Pages

    We would like to express our gratitude to all those who helped us during the whole of our project. We gratefully acknowledge the help of my supervisor, Mr. Fareedy who offered us invaluable advice throughout the project. He has spent time and energy to aid in the completion of this project and none of this would have been possible without his patient instructions, insightful criticisms and expert guidance.…

    • 14318 Words
    • 105 Pages
    Powerful Essays
  • Good Essays

    Cascade Inc

    • 9405 Words
    • 38 Pages

    Cascades Inc. (Cascades) is a Canada based packaging company, carries out operations in production, conversion and marketing of packaging and tissue products of recycled fibers. The company has a leading operations in green packaging and tissue paper products. The company operates in two sectors: Packaging Products and Tissue Papers.…

    • 9405 Words
    • 38 Pages
    Good Essays