The company was just listed early this year and was targeting at reaching the market capitalization of SAR 10,000,000 millions by 2021. (taking into account the number of shares outstanding of 200,000 million shares)

Question 1

Required :

a.What should be the targeted share price at the end of 2021?

b.What should be the targeted Profit after Tax to be achieved to meet the targeted share price?

c.What should the targeted revenue to achieve the targeted share price?

d.If the current share price is achieved based on the average crude oil price of SAR 64, what should be the targeted crude oil price in 2021 (with 13172 total hydrocarbon production (million barrel per day)

Question 2

Based on the balance sheet presented above :

a.Determine what is the Net Tangible Asset (NTA) per share of the company in both 2019 and 2018? What is your evaluation of the NTA Value in relation to the share price?

b.Based on your evaluation, is the assets management of the company efficient?

c.Is the gearing/leverage ratio of the company optimal?

d. Based on the Degree of Leverage (DFL) of the company, is the company expected to benefit from the leverage level?

Question 3

a.Based on the Cash Flow Statement of the company, does the company show better performance as compared to what was presented in the income statement? What is the implications?

b.What is the Free cashflow of the company? What is the implication?

Question 4

a.Based on your analysis of the financial statement of the company above, what is the safety level of the company in terms of revenue level?

b.What is the performance potential ofthe company based on the upswing projection in the crude oil price?

c.If crude oil price go down as far as USD 15 per barrel compared to the current USD 25 per barrel, how bad will the company's performance be?

Question 5

The company received a long term contract proposal from a group of least-developed nations in Africa and South America to purchase the company's products at 45% discount as part of a Corporate Social Responsibility (CSR) contribution of the company to these countries. The contract is for 5 years and this will be about 10% of the companies' current output level. The company has the capacity to increase its production to meet the above contract obligation. There will be an extra cost of logistics and transportation that is estimated to be aboutRM 24,000 million per annum

a.Should the company sign the special contract? Show the financial implications?