Wednesday 10th March 2004 Oman Oil Marketing Company SAOG (OOMCO) held their first Annual General Meeting (AGM) at Muscat Securities Market since the launch of the new company in October 2003. OOMCO were the first SAOG company to announce their financial results to the public. Present at the AGM were members of the board of directors and Shareholders keen to find out how the new company had performed during this transition year.

David Douglas, Chairman Oman Oil Marketing Company confirmed that OOMCO’s profit before tax results were in line with the forecast and that after tax results were significantly increased following a tax provision write back. “Even more pleasing is that this performance has been achieved in an increasingly competitive market and while we were going through the process of separating our operations from BP,” said Douglas.

2003 was an active period for OOMCO with the opening of the first ‘omanoil’ service station, swiftly followed by the conversion of the majority of service stations in the Capital region and four new builds by year end. The new logo and design has been received well by the motoring public and has provided the Company with a fresh look to take into the future.

Given that turnover was down by around RO 7 million, gross profit percentage to sales is up 0.5%, giving a positive pre tax profit at RO 2.2 million with an after tax profit of RO 2.6 million. The balance sheet remains strong with debtors and cash management receiving added attention that resulted in debtors reducing by close to RO 1 million. The continuing focus on business improvements and new opportunities has led to an aggressive capex spend of RO 1.7 million thereby increasing the asset base and giving a net asset value per share increase to RO 1.892 from RO 1.737 in 2002. Earnings per share have risen from RO 0.338 in 2002 to RO 0.405 in 2003, with dividend yields (at offer price) up by 0.5% to 13% from 2002.

Focus on Health, Safety and Environmental issues continues to receive significant attention with excellent results. The joint terminal at Mina Al Fahal operated by OOMCO has now achieved a record 11 years without any injuries or reportable incidents in addition to attaining recertification for ISO 9000-2001, placing the terminal amongst the best run in the world.

Levels of performance achieved by OOMCO have been exceptional given the pressures placed on all staff to perform; undoubtedly the sheer dedication and enthusiasm from them has ensured the Company’s excellent financial, safety and operational performance. Omanization rate is now at 74% with the composition of the management team changing with the first Omani Operations Manager being appointed in 2003.

Looking to the future Mike Wilson, Managing Director OOMCO forecast “OOMCO is well placed to continue its high level of performance both operationally and financially. 2003 has been a challenging year with the Company re-branding and the marketplace becomingly increasingly competitive. The fallout of this has created a new sense of excitement within the Company and within our customer base; with the energetic support of our staff and further innovative programmes planned, 2004 will be an exciting year.”