(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
|Net Profit after tax
|Earnings Per Share - RO
|Net Assets Per Share - RO
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%).
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
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.
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
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
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.
(Last Updated :-
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
Material changes in the
financial position of the Company during Jan-September 2015
compared with the same period of 2014.
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
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
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
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.
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)
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
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
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
The Board of Directors has
taken necessary measures to ensure that internal controls are in
place in all business areas.