Corporate Finance

Bang College of Business (BCB)

MBA Program

FN5202 Advanced Corporate Finance

Project Work

Analysis of Financial Condition of

JCS “Mangistaumunaigaz”

Spring

Almaty, 2013

Acknowledgment

The authors very thankful to Prof. Dr. William Callahan, for teaching the Advanced Corporate Finance course.

Executive summary

The project assigned to us was to study the financial health of JSC “Mangistaumunaigaz” , listed on KASE and with available financial statements for the last three years.

We have decided to choose Kazakhstani oil and gas company JSC “Mangistaumunaigaz”.

The main purpose of this report is to perform an analysis and evaluation of the financial condition of JSC Mangistaumunaigaz. The analysis is based on a comparative approach of the profitability, liquidity, leverage, coverage, and financial stability of the company with performance of its main competitors from the same industry, and provides recommendations for the future improvements. The paper also includes information on long-term, short term planning strategies, CAPM and cost of capital analysis, capital structure and dividend policy and observation on internal and external financial operations.

Methodology of analysis includes time-series, trend, comparative and ratios analyses. Resources for the calculations are taken from the financial statements of the companies for the last five years. Findings of the analyses show that company’ performance during these years was positive in general with some fluctuations in some periods as the result of decreased profitability mainly due to volatile situation on the world economies and global markets of the pharmaceutical industry development. Furthermore, this paper includes information about which dividend policy this company try to follow. As a result, analysis of all these important things can help managers to find the strong and weak sides of any business operations, improve limitations and correct some...