Omanoil employees during the Annual General Meeting
In line with projections of increased demand for petroleum products and the Sultanate’s expected 6% economic growth in 2011, Oman Oil Marketing Company (omanoil) announced historical financial performance for 2010 during its Annual General Meeting (AGM) which was held at Shangri-La’s Barr Al Jissah Resort and Spa.
The Company recorded its highest total sales in history of approximately RO. 216.2 million, an increase of 28% compared to RO 168.4 million in 2009. The pre-tax profit increased by 28% to RO 7.8 million from RO 6.1 million. After providing for corporate tax, the Company’s net profit amounted to RO 6.9 million. Earnings per share stood at 106 baisas.
During the Annual General Meeting, the proposed final cash dividend of 42 baisas per share amounting to RO 2.71 million for the financial year ended December 31st 2010 was approved. This represents a 20% increase as compared to last year.
“In 2010, the Company undertook a series of grass-root improvements and upgrading initiatives to ensure efficient and reliable logistics support systems to meet the demand growth by focusing on effective asset management, operational improvements, as well as the development of a knowledgeable and skilled workforce. These initiatives are crucial in supporting the Company’s various business portfolios to achieve their respective sales targets and remain competitive in product distribution to all locations nationwide,” stated Sheikh Salim bin Abdullah Al Rawas, Chairman of Oman Oil Marketing Company. “Customer Service which lies at the heart of our operations witnessed significant improvements across all business units through the creation of new internal and external systems and processes that promote superior customer care to dynamically exceed expectations.”
The Retail Business Unit’s network expansion continued with full force, and led local market growth by contributing more than 55% to the Company’s turnover. omanoil continued to dominate the commercial market and is poised for increased market share in 2011 through the acquisition of several notable government and private projects, including construction and infrastructure.
A record-breaking 10 new filling stations began operations in 2010, increasing the total of omanoil’s nationwide network to 122. Eight new Ahlain convenience stores were also inaugurated as well as two Quick Service Restaurants (QSRs). The innovative convenience store brand ‘Ahlain’ continues to grow at a rapid pace in the next five years.
“The main focus for 2011 will be on the continuous improvement of the retail plan as a key growth engine by upgrading our facilities to align with customer aspirations, seeking to obtain the latest and most efficient tools that ensure desirable outcomes. In light of Oman’s current economic outlook and projected record spending by the Government in 2011, omanoil will be more rigorous in its growth and expansion strategy to protect and further enhance shareholder value through a series of strategic investments,” added Al Rawas.
2010 was a remarkable year for omanoil’s Aviation Business. The Company successfully secured a two-year aviation fuel supply contract for Oman Air which positioned the Company as a market leader in aviation fuel supply at Muscat International Airport.
omanoil also secured an aviation contract with Ruslan International Airline (Volga Dnepr), one of the world’s leading heavy cargo specialists. With aviation fuel demand expected to grow positively in years to come, omanoil will continue to uphold its high international service and deliver high quality standards for all government and commercial airlines.
2010 also marked an exciting year for the Marine Business as the Sultanate moves towards becoming a vibrant trading nation. omanoil together with its joint venture German partner Matrix Marine Holdings GmbH, secured a bunker license from Sohar Industrial Port Company (SIPC) which led to the establishment of omanoil Matrix Marine Services (MXO), a specialized company that offers various grades of bunker fuel and lubricants to shipping companies at the deep-water port.
As for Operations, Engineering and HSSE, omanoil achieved yet another milestone by completing 18 years of safe operations without Lost Time Injury at the Mina Al Fahal Terminal, a testament to the Company’s world-class operations and a reflection of its ability to handle substantial increases in fuel volumes.
Export lubricants continued to witness large demand with the Gulf market showing vast acceptance, especially in Kuwait and UAE. In addition, Kenya distributorship, one of the chief expansion markets in Africa, commenced in 2010.
As the flagship of the nation and 100% Omani company, omanoil has also managed to increase its Omanization rate to 87% in 2010, making it the highest in the local fuel marketing and distribution industry.
Al Rawas highlighted that in order to meet the continuous challenges and demands of today’s industry, greater emphasis has been placed on developing capacities through sound human capital strategies that are envisaged to propel the Company to greater heights. He went on to say that numerous efforts have been exerted to attract and develop Omani talent to ensure the fulfillment of omanoil’s vision to become the leading fuels and lubricants marketing Company.
Moving forward, the Company will remain focused on achieving excellence in all areas and improving the quality of its wide range of products and services. The Company will also continue to play a visible and active role in contributing to the development of the local energy industry.
Al Rawas concluded, “Continued operational efficiency, superior convenience and best in-class service will remain the integral focus of the Company in 2011. Our journey towards achieving total customer satisfaction will remain persistent by ensuring that various expectations and needs are passionately met.”