Presentation on theme: "Shell Oman Marketing Company SAOG 1 10 th November 2009 Businessmen Hall, CMA Building Represented by Faisal Al Hashar – Managing Director Achilles Sklivaniotis."— Presentation transcript:
Shell Oman Marketing Company SAOG 1 10 th November 2009 Businessmen Hall, CMA Building Represented by Faisal Al Hashar – Managing Director Achilles Sklivaniotis – Finance Director Investors Briefing
Shell Oman Marketing Company SAOG 2 Caution to the Reader This presentation may include forward looking statements based upon current expectations, estimates and projections of future capital spending and project start-ups, that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company. These risks and uncertainties include, but are not limited to, changes in market conditions, laws or government policies, operating conditions and costs, project schedules, operating performance, demand for fuel and related products, price and exchange rate fluctuations, commercial negotiations or other technical and economic factors.
Shell Oman Marketing Company SAOG 3 Contents of this presentation Corporate Strategy Progress against strategy Business Performance Highlights – Retail Business – Commercial Business – Aviation Business – Lubricants Business – Contribution by Business Growth Opportunities Issues & Challenges Financial Performance YTD 2009 Summary Q&A
Shell Oman Marketing Company SAOG 4 CUSTOMER PORTFOLIO OPERATIONAL EXCELLENCE & COSTS PEOPLE Corporate Strategy Develop new customers value propositions.Provide a level of service designed to ensure that the Company is the supplier of first choice in all business segments Upgrade and expand the retail service station network to provide the most customer-friendly service and the widest range of facilities, at the most convenient locations Actively pursue new opportunities that complement and enhance existing business Continue focus on enhancing our operations and cost reduction initiatives Improve efficiency within the Company and benefit from sharing of services and resources with other Shell companies High focus on selection and development of talent Effective motivation and retention
Shell Oman Marketing Company SAOG 5 Progress against Strategy CUSTOMER PORTFOLIO OPERATIONAL EXCELLENCE & COSTS PEOPLE Successful roll out of Improved Shell Super refresh across the country Growth of inland lubricants (increased market penetration) New Volumes in Aviation through Oman Air and RAFO and Air India Customer Service Center launch Continue to enhance retail forecourt services through PMTDR NTI programme in progress (5 opened, 2 under construction) KDR programme in progress (2 opened, 4 under construction) Oman Air and RAFO Contracts Improve HSSE in our premises Improve LOBP efficiency Improve operations at Seeb Airport Resolved License Fee Issue Focused frontline execution Maintained existing tight control on cost/spending Customer Feedback score increased to 93% Deliver lower construction costs on our sites Continue focus on credit management by monitoring closely market conditions ( addressing customers on a regular basis) Implemented competencies framework Continued talent sourcing & development Diversity & Inclusiveness Improved EVP
Shell Oman Marketing Company SAOG 6 Business Performance Highlights
Shell Oman Marketing Company SAOG 7 Retail Business - Highlights Retail Fuels growth 1% Mogas 95 grew by 6.3% Card volume growth 13% 5 new stations opened and 2 under construction 2 rebuild stations completed and 4 under construction Launch of New Shell Super August 2009 Customer Satisfaction Index : 93% Improved CR business performance
Shell Oman Marketing Company SAOG 8 We made the customer smile… More and more customers are smiling at our sites….
Shell Oman Marketing Company SAOG 9 Commercial Fuels Business - Update Secured Electricity fuel business till 2011 Added more major projects to its customer portfolio Enrolling Customer Value Proposition and Sales Tools which resulted in understanding the customer buying behaviour in each segments. This enabled us to offer the customer with best offers in each segment.
Shell Oman Marketing Company SAOG 10 Commercial Fuels Market Size Significant presence in all segments
Shell Oman Marketing Company SAOG 11 Aviation Business - Update Oman Air has introduced the new wide range aircrafts for the long distances which increased the Jet-A-1 fuel volumes at Muscat Int. Airport, SOM is currently supplying 75% of that volume. SOM has Secured 4 bases of RAFO for the next 5 years till 2013 Highly competitive international pricing environment and attractiveness of Muscat airport are key factors to further growth. SOM has secured Air India contract for 3 years
Shell Oman Marketing Company SAOG 12 Total lubricants volume dropped by approx. 30% compared to same period last year mainly due to export sales reduction. Local lubricants business has witnessed good growth in recent quarter. The exports lubricants business, which has been affected during the economic crisis previously, showed some recovery despite its dependency on global demand. Lubricants Business - Update
Shell Oman Marketing Company SAOG 13 Increasing Lubricants sales performance – Local & Exports We deliver value through EFFICIENCY… 2003200420052006200720082009 Q3 YTD Total VolumeGross Margin
Shell Oman Marketing Company SAOG 14 Contribution By Business Turnover RO K 51% 24% 11% 9% 5% Retail FuelCommercial FuelAviation Export LubricantsInland Lubricants
Shell Oman Marketing Company SAOG 15 Growth Opportunities Developing emerging geographic segments and revenue streams. – Continued expansion of Retail network – NTIs and KDRs New road network New residential and commercial development Development of marine business at Sohar, Salalah & Duqm Government airport expansion program(Seeb, Salalah, Sohar, Sur etc) Resource optimisation through operational excellence Introduce automated processes(Direct Debit, Fleet card enhancements etc) Infrastructure & tourism related development Hotels, Resorts, Golf Course, International Games & Conferences
Shell Oman Marketing Company SAOG 16 Issues and Challenges Sohar Refinery price increase The license tariff structure was revised by the government and the company pays increased fees vs previous years. Recent Global Economic crisis impacts some projects / customers in Oman
Shell Oman Marketing Company SAOG 17 Financial Performance Highlights
Shell Oman Marketing Company SAOG 18 Excellent Q3 09 YTD performance… Net Income After Tax Jan-Sep 2009 at RO 10.14 mln (up 4.3%) Cash returned to shareholders in 2008 RO 11.5 mln (up 4.5%) Share price at 31/10/09 RO 2.050/share Despite the depressed global economic environment, emphasis on continued operational excellence delivery and growth. Focus on Cost Management All in RO mln unless otherwise stated YTD Sep 2008 YTD Sep 2009 Var. (%) Net Income After Tax9.7210.144.3 Earnings per share (RO/share) 0.0970.1014.3 Cash from operation (excl. w/c changes ) 13.0514.097.9 Total Capital Employed24.025.56.3
Shell Oman Marketing Company SAOG 19 Growth in Profitability Levels Sales drop mainly attributed to international prices (Aviation/Lubricants) and reduced export Lubricants sales
Shell Oman Marketing Company SAOG 20 Shareholders perspective DECLARED DIVIDEND PER SHARE IN BZSHARE PRICE PERFORMANCE Maintaining strong performance even during market crisis SOM MSM
Shell Oman Marketing Company SAOG 21 Summary Excellent business performance Very Good growth potential coming from – portfolio activities (e.g. Retail network, Aviation contracts) – Improved efficiency – Enhanced Credit management procedures – Cost Control mechanism
Shell Oman Marketing Company SAOG 22 Questions & Answers