Investors

Performance

Overview (2016-Yearly)

(Last Updated :- 30-03-2017)

The performances of these major segments are discussed below:

Retail sales

The retail business unit of Al Maha is oriented towards delivering better and faster service to its customers. With a network of 200 retail stations, Al Maha reaches every corner of the country, emerging as a one stop destination for retail customers with ever-changing needs. Al Maha's ubiquitous presence across the country makes it one of the Oman's top corporate brands.

Fuel prices were deregulated/market-linked in mid Jan 2016, phasing out subsidies and brought uniformity in fuel prices throughout Oman. This presented many challenges and opportunities to your Company and we are working in close coordination with the Government to face these challenges which are critical to maintain the growth in this segment.

The increasing trend of fuel prices during the year is represented below:

FuelPriceRise

Despite the decrease in sales volume due to decrease in demand, the retail sales value has increased by 15% in 2016 when compared with 2015 due to the increase in fuel unit prices during the year, post subsidy removal in mid Jan 2016, as indicated above.

Higher retail fuel prices affected our retail sales volume growth in 2016 and rising inflation next year might hit consumer demand. However, Al Maha sees immense potential for growth in retail business in the years ahead and is strategically positioned to increase market share in this segment by opening more new stations and renovating / rebranding existing stations.

Commercial sales

Al Maha continued its growth in the Commercial & Industrial segment, driven by increased demand from the public utility sector and other major customers. Further, increase in fuel unit prices from mid Jan 2016, significantly pushed up Commercial sales, as the new commercial pricing is linked to the retail pump rates announced by the Government on a monthly basis. Overall, we achieved an increase of 24% growth in this business segment in the year 2016 over 2015.

Deregulation of fuel prices from mid Jan 2016 has brought up exposures which resulted in higher volume in Accounts receivables. A review of new credit policy & procedures to reduce the time of "Order to Cash Cycle" has been done and will be implemented.

Other sales

Other sales comprise aviation fuel and lubricants sales.

Aviation sales segment has seen a reduction of 11% in 2016 mainly on account of significant drop in international oil prices, despite increased fuel supplies to other commercial airlines at the Muscat International airport.

Although, we encounter aggressive competition in lubricants business, plans are in place to improve lubricants business in 2017.

Financial performance

 

2016
RO-Million

2015
RO-Million

Increase/
(decrease)

RO-Million %

Sales 402.2 349.3 52.9 15%
Expenses 21.5 19.96 1.54 8%
Net Profit after tax 8.1 9.2 (1.1) (12%)
Net assets 51.4 50.2 1.2 2%
Earning Per Share - RO 0.118 0.133    
Net assets per share - RO 0.745 0.727    
Return on equity - % 15.8% 18.3%    

Sales have increased to RO 402.2 million in 2016 (2015: RO 349.3 million), an increase of RO 52.9 million (15%) on account of increase in retail and commercial businesses after setting off decrease in aviation & lubricant sales.

Expenditure rose by RO 1.54 million (8%) mainly due to the increase in transportation expenses, employees cost, depreciation, License fees, maintenance expenses, technical fees, provision for impairment of receivables and other expenses offsetting the decrease in filling stations operating expenses.

Net profit after tax decreased to RO 8.1 million in 2016 (2015: RO 9.2 million), a decrease of RO 1.1 million (12%) mainly due to the increase in operating & administration expenses.

Return on equity decreased in 2016 when compared with 2015 due to decrease in net profit in 2016 despite increase in net assets during the same period.

Below is a chart which indicates the net profit, dividend and net equity since 2011:

ProfitDividendEquity2016

Overview (2016-Q3)

(Last Updated :- 25-10-2016)

Despite the prevalence of low oil prices and the challenges it offers and the cost push pressures resulting from subsidy reforms, Your Company continues to focus on growth and remain positive about future prospects. The gradual recovery in oil prices and the wise economic policies of the Government of Sultanate of Oman has a clear impact in guiding the overall economy of the Sultanate in the coming years.

Summary of Financial Performance (RO '000)

- I Quarter 2016 II Quarter 2016 III Quarter 2016 Jan-Sep 2016 Jan-Sep 2015 Variance %
Sales 84,404 101,854 108,620 294,878 262,355 12%
Gross Profit 6,308 7,723 8,189 22,220 21,205 5%
Other Income 518 453 688 1,659 1,410 18%
Total Expenses (4,774) (5,688) (5,713) (16,175) (14,664) 10%
Net Profit after tax 2,052 2,488 3,164 7,704 7,951 (3%)
Earnings Per Share - RO - - - 0.112 0.115 (3%)
Net Assets Per Share - RO - - - 0.739 0.709 4%

Salient features

Total sales during Jan-Sep 2016 has increased to RO 294.9 million from RO 262.4 million, an increase of RO 32.5 Million (12%).

Retail sales increased during the period mainly due to increase in domestic fuel prices from mid Jan 2016, despite drop in product demand mainly in the border areas. Continuing our focus on increasing filling stations net work throughout Oman, 5 new filling stations have been opened during the period taking the number of filling stations to 198, with another 4 filling stations in various stages of construction.

Commercial sales increased further due to the increased demand from the public utility sector and other major customers. With the Government continuing its focus on infrastructure development, we look forward positive growth in this segment.

Aviation sales volume registered a positive growth during the period due to increased fuel supplies to Oman Air & other commercial airlines operating in the Muscat International airport.

Main variances in the statement of financial position

Trade and other receivables have increased by RO 35.7 million, compared to the same period last year, mainly as a result of increased commercial sales value due to increase in domestic fuel prices since mid Jan 2016 and due to decline in cash inflows during the period as a result of the current market conditions, especially those relating to the circumstances of the Gulf States.

Trade and other payables have increased by RO 6.1 million due to the increase in purchases value of petroleum products from Oman Oil Refineries and Petroleum Industries Company (ORPIC) in September 2016, compared to the same period last year.

Financial Statements

Financial Statements

Despite the prevalence of low oil prices and the challenges it offers and the cost push pressures resulting from subsidy reforms, our Company continues to focus on growth and remain positive about future prospects...

Performance

In 3rd Quarter of 2016 total sales (Jan-Sep) has increased to RO 294.9 million from RO 262.4 million, an increase of RO 32.5 Million (12%)...

Performance

News

  • Unaudited Financial Statements for the first quarter ended 31 March 201723.04.17
  • Annual Report 201630.03.17