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Shell Oman Marketing Company SAOG recently held a meeting with local investors at the Businessmen Hall in the Capital Market Authority premises at CBD.
The meeting was attended by a number of investors, brokers, fund managers and media representatives. The meeting was part of the Company’s ongoing communication programme with its shareholders and investors with the objective of engaging them on the current performance of the Company.
During the meeting, Mr. Faisal Al-Hashar, Managing Director, Shell Oman Marketing Company SAOG and Mr. Shaiful Zainuddin, Finance Director, gave a presentation on the Company’s corporate strategy, and year-to-date business performance.
The overall business performance showed a healthy trend due to the current growth in the market that is mainly attributed to infrastructure development in the country. The growth of the company was directly aligned to the total industry growth from local demand. Mr. Al-Hashar indicated “ For example, in our Commercial Business, the majority of our customers are all based in Oman and we have ensured that our business activities is in accordance to the direction and guidance of the relevant authorities, and therefore the fuel that we sold is indeed for industries that are based in Oman and for local consumption.”
The Retail business in Oman has grown significantly during the past few years. Sites that are located across the border did see a slightly higher increase in sales – due to the price disparity between Oman and it’s neighboring country. “ Imagine you are driving across the border, your natural instinct will tell you to fill your car’s tank prior to being exposed to higher fuel prices – which was the opposite trend when prices were lower there” Mr. Al-Hashar explained. “This is a short-term phenomena and unsustainable, and the impact is marginal to our business” Mr Al-Hashar continued.
Furthermore, in the Retail business, the continuation of the new Shell petrol with Better Mileage Formula has continued to add sales volumes to the Shell Service Stations. Also, during the year the company injected four new Shell Service Stations and another two new stations are scheduled to be completed later this year.
Similarly, the Company has been able to leverage its lubricants blending plant capacity to increase its sales significantly. This was possible with the introduction of a second shift and therefore increasing the plant’s capacity by over 40%.
Mr. Al-Hashar also commented that the combination of all of the above has enabled the Company to register a good sustainable performance for the period ending 30 September 2007. The result as published at the end of October 2007 showed the Company generating a Net Income After Tax of RO 8.07 million (YTD September), compared to RO 7.05 million in the same period the previous year with increase of 14.5%. The Company continued to generate the highest Return on Capital Employed in excess of 40% during the last 12 months.
On the outlook for the rest of the year, Mr. Al-Hashar said that the Company was confident of maintaining the current performance. The Company would continue to focus on servicing its customers’ requirements through a robust Customer Value Proposition ensuring them best quality of products and services.
External Affairs Department,
Shell Oman Marketing Company SAOG