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