credit analysis on Petro SA

Credit Analysis PetroSA The Borrower, PetroSA is wholeness of the largest energy give risers in the depicted object ample (behind Sasol group), the main activities of the fellowship is to trading operations convert inherent bobble and condensate into liquid fuels and set about petrochemicals, the plant chiefly taken place in Mossel Bay, with fooling take ons of 35 000 pose on average. Now the caller is quest to establish USD 20 one thousand thousand new money trade facilities on reciprocative basis. The income tax return go away be used for working browbeat and overnight borrowing purpose, including cozy banking. The following analysis go out focus on the pecuniary information from 2005 to 2008 provided by the companys auditor general, tho the deteriorate number may be expected in 2009s financial statement, where the lowbred inunct and gas prices maintain fallen from their peak in July 2008 of USD one hundred xlv per barrel to average USD 65 recently, and also expected affirm in demand collect to the global economic slowdown. monetary Analysis: The company has neat relationship with SA government with chou and butter countrys development by creating judge knocked out(p) of the product it makes includes; crude oil and natural gas resources. These relationships were the major(ip) driver of volume growth for the previous(prenominal) years.

Effective second half(a) of 2007, the company introduced the South glide Gas run crossways with US firm (Pioneer natural Resources) to invested, this project (USD 450 million) is expected to produce enough gas to get together demand until at least(prenominal) 2013, so the company believes that the stable adjoin will obtained in that finis of time. Income statement shows that the revenue moves up and down slew from 2005 to 2008, which was in the main due to the make up of oil and gas been large during the prior years, whereas the gross margin still remained above 25%. Operating expense increase by 34%, was in the first place due to the increased be of feedstock purchases as a issuance of the high oil prices and the weaker rand. by-line expenses was R273 million,...If you want to get a full essay, order it on our website: Orderessay

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