Financial Analysis of China National Petroleum Corporation

Rui Cheng

Bachelor's thesis

Abstract:

The objective of this thesis is to analyze the financial position of China national petroleum corporation in the selected period. Especially we will concentrate on CNPC’s running situation. Because according to report of CNPC we can basically tell that there are lot of changes of CNPC. The whole thesis includes five parts to describe different information about CNPC and some theories. In the first chapter, it will be an introduction about the whole thesis. This chapter is going to show the whole structure of the thesis. Moreover, it will inform the reader about the basic information and headline about the thesis. In chapter 2, it will describe the theoretical methods of financial analysis which include financial analysis, financial statement (balance sheet, income statement, cash flow statement), Common-size analysis (horizontal common-size analysis, vertical common-size analysis), financial ratio analysis (profitability ratios, liquidity ratios, solvency ratios, assets management ratios), and pyramidal decomposition. It will be extremely useful to introduce this theory. And the following calculation will all base on chapter 2. In chapter 3, we will introduce characterization of China national petroleum corporation which means all kinds of basic information about CNPC will be mentioned in this chapter. The details will include overview of CNPC, organization structure of CNPC, major events of recent years, some profile of CNPC (mission, values, strategy, goal) and technology and innovation of CNPC. It will be a fulfilling information for readers to get known deeper about CNPC. In chapter 4, there will be a lot of financial ratios calculation according to theories of chapter 2.we will calculate different financial ratios and make the result into a table and figure. So, we can easily compare the situation in different years. we will explain why this ratio is increasing or decreasing as well. And it will be a small analysis after each calculation. Hence, we can see more details about the financial situation of CNPC. Finally, in chapter 5, it will be a conclusion in the end of this thesis. We will summarize what we found about CNPC. Also, we will summarize the main work about this thesis.

Abstract:

The objective of this thesis is to analyze the financial position of China national petroleum corporation in the selected period. Especially we will concentrate on CNPC’s running situation. Because according to report of CNPC we can basically tell that there are lot of changes of CNPC. The whole thesis includes five parts to describe different information about CNPC and some theories. In the first chapter, it will be an introduction about the whole thesis. This chapter is going to show the whole structure of the thesis. Moreover, it will inform the reader about the basic information and headline about the thesis. In chapter 2, it will describe the theoretical methods of financial analysis which include financial analysis, financial statement (balance sheet, income statement, cash flow statement), Common-size analysis (horizontal common-size analysis, vertical common-size analysis), financial ratio analysis (profitability ratios, liquidity ratios, solvency ratios, assets management ratios), and pyramidal decomposition. It will be extremely useful to introduce this theory. And the following calculation will all base on chapter 2. In chapter 3, we will introduce characterization of China national petroleum corporation which means all kinds of basic information about CNPC will be mentioned in this chapter. The details will include overview of CNPC, organization structure of CNPC, major events of recent years, some profile of CNPC (mission, values, strategy, goal) and technology and innovation of CNPC. It will be a fulfilling information for readers to get known deeper about CNPC. In chapter 4, there will be a lot of financial ratios calculation according to theories of chapter 2.we will calculate different financial ratios and make the result into a table and figure. So, we can easily compare the situation in different years. we will explain why this ratio is increasing or decreasing as well. And it will be a small analysis after each calculation. Hence, we can see more details about the financial situation of CNPC. Finally, in chapter 5, it will be a conclusion in the end of this thesis. We will summarize what we found about CNPC. Also, we will summarize the main work about this thesis.

Keywords

CNPC, Financial analysis, Financial ratio, Financial statement, Financial position

Keywords

CNPC, Financial analysis, Financial ratio, Financial statement, Financial position

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2018

Thesis defence

• Date of defence: 4. 6. 2018
• Supervisor: Tomáš Tichý
• Reader: Aleš Kresta

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance