Apr 09 2007
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Oman Oil Marketing Company joint venture to pursue business opportunities abroad
Last year, the JV established by OOMCO with the Al Sarooj Group made some headway in efforts to stimulate the company's business aspirations in overseas markets. In April, OOMCO announced plans for a partnership with Yemen Petroleum Co aimed at establishing a retail network in Yemen. The two sides had signed a Memorandum of Understanding for a feasibility study on this proposed initiative.
"The discussions with Yemen Petroleum Company for developing a retail network in Yemen are ongoing and pending resolution from their end in order to make the business a viable one for the parties involved," CEO Omar Ahmed said. But plans by the JV to develop retail sites in Baghdad had been shelved because of the volatile situation in Iraq. The joint venture company had already secured permits for building the retail sites in Baghdad, as well as to bid for a site at Baghdad airport. However, given the "unstable security situation" in Iraq, the OOMCO Board had decided not to pursue this plan, the CEO stated in the Annual Report.
Discussing OOMCO 's operational performance for the year, Omar Ahmed described 2006 as the "most successful year ever with record breaking sales helping contribute handsomely to the company's turnover and net profit". The company achieved a turnover of RO 121.4 million in 2006, compared to RO 90.2 million a year earlier. Gross profit rose to RO 11.8 million, as against RO 9.4 million in 2005.
This is due to change in the fuel mix, aggressive growth in the fuel card business and increased number of stations on the Dealer Owned Company Operated (DOCO) model," the CEO said. During 2006, nine new filling stations were opened -- the highest number achieved in any one year -- while three others received major refurbishments. The company has also significantly increased its presence in Salalah, with four stations at present with another due to be added in 2007.
By Conrad Prabhu
© Oman Daily Observer 2007
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