Oman Oil Annual General Meeting
Oman Oil Marketing Company (omanoil) announced a breakthrough financial performance year for 2011 during its Annual General Meeting (AGM), held at the Crowne Plaza Hotel Muscat.
The company recorded its best-ever year for financial performance with sales at approximately RO 278.2 million, an increase of 29% compared to RO 216.2 million in 2010. The pre-tax profit increased by 18% to RO 9.2 million. After providing for corporate tax, the company’s net profit amounted to RO 8.1 million, and earnings per share stood at 126 baisas.
During the Annual General Meeting, the proposed final cash dividend of 62 baisas per share amounting to RO 4.0 million for the financial year ended 31st December 2011 was approved, representing a 48% increase as compared to last year.
“Our accomplishments are a result of dedicated collective efforts as we climb great heights with the support of our spirited staff. The omanoil family is passionate, persevering and committed to continued operational efficiency, excellence in convenience and world class service, and passionately meeting customer needs to ensure total customer satisfaction,” said Sheikh Salim bin Abdullah Al Rawas, Chairman of Oman Oil Marketing Company.
Oman Oil Marketing Company closed 2011 with over 1 billion liters in fuel sales. An aggressive growth strategy focused on closing retail network gaps resulted in ten new high-volume sites strategically located in the Sultanate. The number of retail filling stations reached a total of 132 in 2011, additionally three existing sites were renovated to maintain customer satisfaction.
"Our retail network expansion invests in strategic locations across Oman to reinforce the nation’s long-term development ambitions," said Al Rawas. “The country’s developing infrastructure is accommodating the growing population and has inspired our expansion plan to reach our customers across the Sultanate, providing consistently excellent re-fuelling and shopping experiences at all our filling stations as loyal friends on the road to motorists and local communities.”
The fuel cards business grew over the year with sales to new customers in the Government and private sectors significantly contributing to overall sales of the Retail business. omanoil aims to expand the fuel card business as a main growth factor within Retail, as it will accommodate high government spending projected in 2012.
As a part of the strategic expansion, omanoil renewed the Convenience Store Agreement with its two partners, Enhance and Khimji Ramdas to sustain the ahlain business. A total of nine ahlain convenience stores were commissioned in 2011 with new outlets planned to complement the existing retail network and provide added convenience to customers. "The framework of our retail network expansion strategy focuses on total convenience, allowing us to redefine the one-stop-shop concept, while introducing best-in-class customer service,” said Al Rawas.
A remarkable year for omanoil, 2011 witnessed vast improvement of economic conditions and increased Government spending on infrastructural developments, projects of which omanoil successfully secured while retaining existing projects.
The Aviation business continued its success in 2011 with over 50% market share at Muscat International Airport. The company’s position as a market leader in aviation fuel supply is maintained by securing exclusive contracts with a number of international carriers such as Thai Airways and Biman Bangladesh. New airline customers include Lufthansa and Swiss Air.
With the country’s high investments in tourism development, it is envisaged that the future’s new Muscat International Airport will receive higher passenger and air traffic, resulting in greater aviation fuel demand.
Joint venture company omanoil Matrix Marine Services has grown exponentially in volume as the sole active bunker fuel supplier at Port Sohar. The company is expanding its presence in emerging ports in the Sultanate hoping to see the same results as Port Sohar.
Oman Oil Marketing Company achieved financial targets in 2011 due to excellent sales in both construction and rig segments. While base oil prices remained stable, improving the company’s market share in the commercial lube segment, omanoil further increased sales with new accounts. Additional markets obtained include Afghanistan and Kuwait, and in strengthening brand awareness in new markets, the company looks to the future of export lubricants in the African continent and the GCC.
Lying at its heart, excellent customer service provides a platform for continued growth as the foundation of omanoil’s corporate reputation. Repeat and loyal customers are a result of effectively understanding customer needs and concerns, and efficiently responding by dynamically exceeding expectations.
Al Rawas said, “Where customer service is the heart of the company, Health, Safety, Security and Environment (HSSE) is the backbone. We celebrate 19 years of safe operations without Loss Time Injury at our Mina Al Fahal terminal, indicative of the world-class operational standards we have in place and the commitment of staff who implement best practices at all times. Our focus on HSSE and improving industry benchmarks will enrich our successes as we grow.”
Aiming to be a model corporate citizen advocating best practices, omanoil continues to pioneer social initiatives and programs through creative collaborations with local associations and organizations. Engaging the local community and the youth through various road safety initiatives, issues concerning the youth, sports, education and health has gained omanoil the trust and goodwill of stakeholders and investors.
Al Rawas conculded, “As a fully-pledged Omani company, our Omanisation rate is one of the highest in the industry at 86% at all levels of employment. Investment in Omani staff is a crucial asset to move the company forward with the benefit of an intimate understanding of local market sensibilities, coupled with best international practice that results in trust, confidence and loyalty among stakeholders. We aim to develop the talent pool to ensure continuity of leadership and skilled resources.”