Slight drop in net income of Shell Oman Marketing Company
Shell Oman Marketing Company SAOG announced Tuesday that its Board of Directors would recommend a final dividend of 530 baizas per share, which is subject to approval by the shareholders at the Annual General Meeting in March 2005. This will be in addition to the interim dividend of 400 baizas per share paid out earlier in Nov 2004. This brings the total dividend declared for 2004 to 930 baizas per share (2003: 600 baizas per share), representing an increase of 55 %.
The Company has delivered RO 5.3 million net income after tax (NIAT) for the full year 2004. Although slightly lower than last year’s results of RO 5.6mln, this is an impressive result given the earlier projection of a substantial decline in the profitability level due to the loss of once-off Aviation volumes and the fuel supply business in the power generation sector. The Company was able to achieve this performance through improved efficiency in the Retail business as well as being able to grow the portfolio in Commercial Fuels, Aviation and the Lubricants export market. The Company has also benefited from a leaner cost structure.
The Company has also managed its working capital effectively during the period. Despite intense competition and its pressure on the terms of trade, the trade debtor level at RO 10.6 million is the best in the industry, given the sales turnover volume Shell Oman has. This will ensure that the financial asset of the Company remains protected for a long time to come.