Business
A close look at the financials reveals that the retail
sales delivered a significant 27 per cent growth in 2005
vis-à-vis the previous year. It was a volume game
coupled with the rise in the selling price in mid-2005.
As a strategy, like other oil marketing corporates in
Oman, Al Maha is also adding to its “Souk”
outlets in filling stations, which stands at a grand 50.
Bulk sales shot up by 12 per cent last year, purely driven
by an increase in selling price. Al Maha witnessed a 13
per cent upsurge in aviation fuel sale in 2005.
Best Practices
KPMG, the statutory auditors to Al Maha, have given
a clean chit on the implementation of Code of Corporate
Governance as per the norms laid down by the Capital
Market Authority in the Sultanate. Besides, the company
is focused on ensuring competence, behaviour-based programmes,
commitment at all levels and managing change as far
as health, safety and environment commitments are concerned.
While Al Maha has effortlessly notched up a 85 per cent
Omanisation target, the company’s HR polices,
admits Chairman Suwaidi, seek to identify, develop and
reward employees “who demonstrate the qualities
of individual initiative, drive, determination, hard
word and loyalty in his/her job”. Nevertheless,
a lot more is currently underway. A considerable amount
of work on the business process and business re-engineering
study, including the review of manuals to review efficiency
and to ensure full compliant with the Code of Corporate
Governance, has been completed.
The year 2005 had a lot of challenges that impacted
overall HSE performance. As compared to previous years,
2005 was a busy year by any standard. The HSE Management
system was completely revised to suit to the present
organization set up. New manual was prepared. Along
with this, there were continuous efforts to drive HSE
to reach the hearts and minds of every one involved
in Al Maha and its contractors operations.
Forecast
Al Maha anticipates that the retail sales will go up
by 16 per cent in 2006. Adding more “Souks”
is a certainty given the fact that hardly 50 out of
150 filling stations sport such a facility. Chairman
Suwaidi does not mince words and admits that bulk sales
will remain flat in 2006. However, he forecasts a 10
per cent rise in aviation fuel sales this year. Both
analysts and the company are confident that in 2006,
Al Maha will once again cross the RO 100-million mark.
What about the investors? Reasonable cash dividend is
what Chairman Suwaidi promises in the early days. Is
he playing safe by under-promising, but over-delivering?
One wishes, he does.
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