Engen, the third largest petroleum company in the country, shrugged off concerns over the turbulent crude oil markets that dominated international headlines this year by posting strong results in half year results to end of September.
According to the six-months financial results to the end of September turnover shot-up by 73 percent to P 720.9 millionÔÇöjust shy of its previous full year results of P921 million.
However, the company was faced with a raft of challenges over the years, such as sky rocketing pump prices and the unstable foreign exchange environment.
“The first half of the year has been quite difficult from price point of view, as was experienced in other markets. Pump price which was at P6.33 per liter for petrol rose to the peak of P 8.94 per liter before the current decline.
“Because petrol is a primary household transport fuel, the average fill rate for motorists declined noticeably,” the company said in a statement.
It also pointed out that it was hit by the global exchange rate problem which wiped P 10 million from its balance sheet as against P 3 million during the corresponding period last year.
However, the company whose business has largely been supported by the commercial sectorÔÇöespecially the minesÔÇö said it is aggressively working on plans to increase its foot-print in the retail section.
“The commercial sector did not experience such major impact in terms of volume performance. This mainly because the bulk of the projects are being undertaken by government which remained committed to the projects despite the fuel price increase,” the company said.
Competition is expected to intensify on the commercial front as mines in the north are positioning themselves to open. With new mines in the pipeline, including AK6 diamond mining company’s fuel tender which is expected to open soon, petroleum companies are already burning their mid night oil over it.
The company was at 470 thebe at Friday close on the BSE.