Omanoil announces continued solid financial performance at annual general meetings

Muscat, April 2010

Despite a financial year characterized by widespread caution and uncertainty as a result of the economic downturn, Oman Oil Marketing Company (omanoil), proved its solid financial track record in 2009 with a promising outlook for the current year at the recently held Annual General Meeting at the Crowne Plaza Hotel.

The Company’s total revenue totaled RO 168.4 million and after providing for corporate tax, the Company’s net profit amounted to RO 5.4 million, with earnings per share at 83 Baisa. At the Annual General Meeting, the proposed cash dividend of 35 Baisa per share for the financial year ended December 31st 2009 was approved.

“In facing this challenging year, we undertook various improvement and upgrading initiatives to ensure an efficient and reliable logistics support system,” said Sheikh Salim Abdullah Al Rawas, Chairman of Oman Oil Marketing Company. “Focused on effective asset management, operational improvements as well as development of a knowledgeable and skilled workforce, these initiatives were crucial in supporting the Company’s various business portfolios to achieve respective sales targets and remain competitive in product distribution.”

The highest ever in omanoil history, the Retail Business Unit contributed more than 69% of the Company’s sales with a nationwide network of 113 service stations across the Sultanate. Given the Company’s holistic approach to total customer convenience, the non-fuel business significantly augmented overall performance with a notable increase of more than 25%. omanoil remains committed to continuously exploring new and potential business activities to strengthen and expand its retail network and offering with a focus on improved operational efficiency, convenience and best in-class customer service.

Aviation also proved to be a key growth sector, solidifying omanoil’s position as a partner of choice and a leading service provider at Muscat International Airport. In 2009, the Company secured six new aviation contracts, most notably Thai Airways and Turkish Airways.

The year 2009 witnessed very high growth against 2008 for the Company’s export lubricant business with the supply of turbine and transformer oil to Iraq being the biggest achievement since the introduction of omanoil branded lubricants two years ago.

One of the many milestones achieved in 2009 is the completion of 17 years of safe operations without Lost Time Injury (LTI) at Mina Al Fahal, a clear reflection of the Company’s prudent health, safety, security and environment practices in all its operations which is pivotal to the success of the business especially with the substantial increase in volumes.

As the flagship of the nation and 100% Omani company, omanoil prides itself on its young, indigenous and energetic workforce. Omanization is at an all time high at 88% with a continued focus on human capital development through specialized training programs across all levels of the organization.

Passionately addressing and delivering innovative products and services for customer needs continues to be a hallmark. The Company’s new convenience store brand “Ahlain” expanded across all regions, bringing the omanoil experience to life with the celebration of the opening of its 60th convenience store.

Continuing its stride to excellence, omanoil was ranked one of ‘Oman’s 130 Greatest Brands’ which further solidified the Company’s credentials as the leading brand in the oil industry in the number one spot, and second place amongst all other competing brands from a multitude of business sectors. The recent ranking by Oman Daily Observer complimented another important recognition which omanoil received by Superbrands Middle East and North Africa as a leading visionary fuel and lubricant marketing Company with unique national and regional brand attributes.

Sheikh Salim added, “We are poised for better performance in the coming year with strategies geared towards network expansion and increasing market share. Strong emphasis will be placed on cost efficiency to reduce cost of service and delivery without compromising customer service and quality.” The demand for petroleum products is also expected to grow in line with Oman’s projected economic growth and the new budgets for 2010 which reflect the Government’s relentless efforts in developing the country.