Fuel marketing companies are optimistic this year with improved economic growth and recovery from the pandemic

27% increase in regular fuel production during the first quarter

Ordinary motor fuel production from the Sultanate of Oman refineries increased by 27 percent to 2.865 million barrels at the end of the first quarter, compared to 2.252 million barrels in the same period last year, while premium motor fuel production fell to 2,855 has. million barrels from 4.347 million barrels at the end of the year. Last March, jet fuel and diesel production also declined to 1.356 million barrels and 5.390 million barrels, respectively. Refinery production generally decreased by 25% at the end of the first quarter compared to the same period last year. Companies involved in marketing fuel in the Sultanate of Oman have shown an improvement in their performance efficiency during the current year due to the economic growth associated with high oil prices, and the gradual recovery from the effects of the Corona pandemic .

She said her focus is on providing innovative, high-quality products, launching initiatives to attract customers, in addition to operational excellence, reliability of information systems and interest in non-fuel retail business.

The companies achieved good sales and profits at the end of last year, as their net profit amounted to more than 9 million Omani riyals.

Despite Oman Oil Company’s optimism this year, he expects many challenges he can overcome by innovating in new products, reorganizing business strategies and improving operational and service excellence, making it better to handle future changes.

Oman Oil said: Our focus is on human capital development, reliability of information technology systems, and good practices for occupational health and safety, and quality. In addition to focusing on product quality, cost efficiency and delivery without compromising customer service. Retail sites will also be launched in collaboration with Ahleen stores at strategic locations in the Sultanate of Oman, Saudi Arabia and Tanzania.

As part of Oman Oil Marketing’s commitment to the distribution of clean and sustainable energy in its operations, the company has supplied eight of its stations with solar energy, and also has a device for charging electric vehicles at the environmentally friendly station “the integrated station at Sultan “installed. Qaboos University “. The company is looking at the future of environmentally friendly cars in line with the strategy to reduce carbon dioxide emissions.

The company achieved a 27% increase in its sales revenue last year, equivalent to 560.7 million riyal, mainly due to the increase in sales in the retail business, cost rationalization, effective working capital management and positive crude oil prices. The company’s profit before tax also increased to 4.38 million rials, while the increase in net profit after tax was 3.61 million rials compared to 2020.

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Shell Oman Marketing expected this year to be a year full of stability due to the good economic conditions associated with the rise in oil prices. The company said: The impact of the Corona pandemic on demand levels in the energy sector continued into 2021, which is mainly due to the reduction in commercial activity due to movement restrictions during different stages of the year. Uncertainty is expected to continue over the pace of recovery in demand levels in 2022 due to the emergence of new cases locally and internationally.

Shell has made clear that the acquisition of a stable balance sheet during 2021 qualifies it to be in a position to invest in new business opportunities this year, while maintaining financial strength that gives it flexibility in the face of possible challenges may arise at demand levels.

The company also focuses on other aspects, including information risk management, and the opportunities and risks associated with new business in the direction of the energy transition. This year, the company completed the launch of the second solar-powered service station and the pilot operation of the first electric charging unit. It is part of the energy transformation journey to a more sustainable environment, aimed at achieving the company’s ambition to reduce carbon emissions.

The company is scheduled to open 4 integrated stations on the Al Batinah Highway by the end of the first quarter of this year. The company said: The retail sector is one of the company’s largest business sectors, still providing customers with an excellent transport experience through a wide network of service stations. Despite the difficult market challenges posed by the Corona pandemic and the challenges it has posed to mobility and commercial activities since the beginning of the year, the business has remained resilient, with a focus on providing high quality products. .

The company explained that one of the challenges the company has faced in the past year is Hurricane Shaheen, which hit the northern part of the Sultanate of Oman in early October, affecting half of the business network, whether partially or completely, but the company was able to change all the damaged facilities in less than two days ago.

As for the non-fuel retail business, it is getting a big focus on improving the customer experience, as a new Shell “Select” store has been opened in addition to the branch network.

In the commercial fleet solutions business sector, the company is committed to customers in the process of accelerating the journey of digital transformation, automation and smart experiences to meet the needs of customers. The company also continued its efforts to expand its customers and acquire new customers. by taking advantage of the card management system to provide an excellent fleet customer experience.

In terms of the commercial fuel business sector, the company has made clear that this sector remains characterized by challenges due to the impacts caused by the economic landscape as a whole, but the focus remains on seizing new opportunities, operating excellence and service presence to maintain key customers. As for the oil sector, the rise in oil prices has affected the total cost of manufactured oils and its profit margin, but the company was able to boost its growth by introducing new co-branded products manufactured specifically for ISO and Hyundai cars. The company also benefited from the oil factory which obtained the international quality certificate in Mina Al Fahal to improve the local added value.

The company generated good revenue in the past year as it increased by 9% to 398,429 million riyal, and total profit increased by 10% to 30,039 million riyal, mainly due to the movement in the value of inventory due to the increase in the prices of petroleum products and the profit margin. The net profit and comprehensive income amounted to 3,611 million riyal.

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Al Maha Oil Products Marketing has during the current year expressed its optimism to take advantage of the opportunities arising from the changing business environment, with the rise in oil prices and growth in the gross domestic product, the reduction of restrictions on movement and the high rate of immunization against the Corona epidemic.

The company said that the aviation sector is one of the sectors most affected during the epidemic, due to the severe restrictions imposed on international travel, and that this sector is expected to recover again in 2024, i.e. with the return of airport traffic and an increase in the number of travelers.

This year, the company will continue its efforts to digitize all its stations, and to launch initiatives that attract the commercial sector, such as the “Violi” initiative to transport fuel at the customer’s door. The company achieved high sales at the end of last year, estimated at 12%, equivalent to 372.9 million riyal, due to the partial recovery of economic activities due to the decrease in the impact of the Corona epidemic, and the recovery of oil prices. Net profit also increased to 2,760 million riyals, or 220%, compared to 2020.

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