Investors

Performance

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.

Overview (Yearly 2015)

(Last Updated :- 28-02-2016)

Low oil prices which prevailed throughout 2015 affected Oman's economic growth, resulting in significant reduction in Government revenues and decline in GDP. The drastic fall in oil prices have resulted in a higher government deficit, lower government spending and slowing down of overall economic activities.

The year 2015 was a challenging year for your Company. Driven by strong domestic demand and better performance in the retail & commercial segments, sales in terms of volume grew up by 5 % in 2015 when compared with 2014. However, due to the declined international oil prices that mainly affected the aviation and commercial sales segment, the total sales in terms of value has decreased by 5% from 368.9 million in 2014 to 349.4 in 2015.

The net profit achieved in 2015 stood at RO 9.2 million registering a decrease of 14% over 2014, mainly due to the increase in operating and administration expenses during 2015 as a result of increased operational activities.

Total equity has increased to RO 50.2 million at the end of 2015 from RO 48.6 million at the end of 2014, registering a growth of 3 %.

As a result of drop in the net profit, earnings per share have decreased to RO 0.133 in 2015, compared to RO 0.155 in 2014.

Major events during the year

1) Our retail sales segment achieved a steady growth during the year. The expansion of road network and growth in the automobile sector have further contributed to the growth of our retail segment. We continue to expand our filling stations network by opening 6 brand new filling stations in 2015, taking the number of filling stations at the end of 2015 to 193, with another 9 filling stations in various stages of construction. Continuing our successful retail rebranding programme , now a total of 104 filling stations have new look offering quality customer service.

2) Despite the challenging competitive environment, the commercial sales segment also performed well. Your Company has managed to secure several projects during the year and widened its customer base through combination of competitive prices and operational excellence.

3) The aviation sales segment has seen a reduction in sales mainly on account of continued fall in international aviation prices and on account of reduction in consumption by one of our major customers.

Overview (2015-Q3)

(Last Updated :- 03-11-2015)

The plunging oil prices, which has been cut roughly in half since June 2014, has been putting pressure on economies mainly in the GCC region, making the economic performance & outlook uninspiring. However, Oman's economy has been able to withstand short and medium term pressures due to high fiscal reserves and assets.

Lower oil prices represent a real challenge to our business and we need to be prepared and adopt strategies that take advantage of the new reality.

The negative impact of falling oil prices on our revenue stream is clearly evident from the fact that despite 7% growth in sales volume achieved during Jan-Sep 2015 in comparision with same period of 2014, the sales growth in terms of value has decreased by 4% during the same period.

The net profit achieved during Jan-September 2015 stood at RO 7.95 million, registering a decrease of 10% when compared with the same period of 2014, mainly due to increase in operating & administration expenses during the period as a result of increased operational activities.

During the period from October 2014 to September 2015, six new filling stations with the new brand have been opened.

Material changes in the financial position of the Company during Jan-September 2015 compared with the same period of 2014.

Performance (2015-Q3):

Below are the main variances in the statement of profit or loss and other comprehensive income:

1)Driven by strong domestic demand and better performance in  the Commercial & retail segments, sales  growth in terms of volume grew-up by 7% during Jan-September 2015 when compared with the same period last year.

However, due to the declined oil prices which mainly affected the aviation & commercial sales segments, the total sales in terms of value has decreased by 4% from RO 273 million in Jan-September 2014 to RO 262 million in the same period of 2015. 

2)As a result of increased activity resulting in the sales volume growth,  Operating & administration expenses have also increased by RO 1,182 k (9%), mainly due to the increase in transportation costs, depreciation, provision for impairment of receivables, employee costs and maintenance expenses, which were partly offset by the decrease in technical fees, license fees & other expenses.

Below are the main variances in the statement of financial position:

1)Trade and other receivables have decreased by RO 7.4 millon (12%) mainly as a result of decrease in sales value during Jan-September 2015 compared to the same period in 2014.

2)Trade and other payables have decreased by RO 6.4 million (16%) due to the decrease in purchases value of petroleum products from Oman Refineries & Petrochemicals Co. in September 2015, as a result of fall in international oil prices.

Overview (2014)

Even though oil prices have declined during the last quarter of 2014, the Oman's economy continues to remain strong and looks well placed to mitigate the risks caused by the oil price fall.

2014 was a year when your Company continued to progress at a faster pace. For the financial year ended 31 December 2014, your Company recorded sales of RO 369.7 million, an increase of 16.1% (RO 51.2 million) over 2013 and net profit has reached RO 10.7 million, an increase of 3.1% over 2013.  

Total equity has increased to RO 48.6 million at the end of 2014 from RO 44.8 million at the end of 2013, registering a growth of 8.5 %.

Earnings per share have also increased to RO 0.155 in 2014, compared to RO 0.151 in 2013(earnings per share of 2013 were restated due to splitting of each share into 10 shares on 25 March 2014) 

Performance (2014):

1) Capitalising on the rapidly growing demand for petroleum products, we expanded our filling stations network by opening 6 brand new filling stations in 2014. Now there are 188 retail outlets in various locations in Oman, with another 6 stations in various stages of construction. 

As part of the ongoing rebranding programme, your Company, during the year, continued its dynamic and innovative approach to offer our customers various services and products in a modern ambience. Since the commencement of the rebranding process, 59 existing filling stations have been rebranded & refurbished till the end of 2014. 

2) The commercial sales segment continued to deliver strong sales performance during the year in a challenging business environment through effective marketing strategies and responsiveness to changing customer needs.

3) Backed up by new contracts won during the year, the aviation sales segment also recorded a significant growth.

4) With the objective to make your Company's shares more attractive and affordable to investors, the Extraordinary General Meeting of the Company held on 25 March 2014 resolved to split each share having nominal value of one Riyal Omani into 10 shares with a nominal value of one hundred Baisa per share. As a result of this, the total number of issued & paid-up shares of the Company has increased from 6.9 million shares to 69 million shares.

5) On 24 December 2014, the Managing Director (at that time) & the Senior Marketing Manager (at that time) of the company were called & questioned by the concerned authorities. Subsequently, a court case was initiated against the two employees in their personal capacities.  The Board of Directors resolved on 28 December 2014 to suspend the services of the two employees until further notice & nominated on 30 December 2014 Al Sayyid Munther Saif Hamed Al-Busaidi - the Deputy Chairman, to take over the responsibilities of the managing director until further notice .

Based on an independent legal opinion, the company cannot be held liable for the wrongful acts of these two employees especially because if the allegations against them are proved, it will be a case where the two employees were acting outside the scope of their lawful authority & will be liable to any party who suffers loss arising from their actions.

The Board of Directors has taken necessary measures to ensure that internal controls are in place in all business areas.

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

  • Replacement of Director16.11.16
  • Unaudited Financial Statement for the period Jan-Sep 201625.10.16