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Oil marketing firms report sharp decline in 2019 net profits

23 Jan 2020

Oman’s all three oil marketing companies – Shell Oman Marketing Co, Al Maha Petroleum Products Marketing Co and Oman Oil Marketing Co – have reported significant declines in their net profits for 2019, mainly due to softening of demand from large consumers.

For the full-year 2019, all three companies together reported RO20.36mn total net profit which is much lower than the RO25.3mn net profit registered by oil marketing companies in the previous year.

The steepest decline in net profit for the year under consideration was reported by Oman Oil Marketing, whose group net profit for 2019 fell 32.3 per cent to RO5.47mn compared to RO8.09mn reported in 2018, according to the company’s preliminary financial results announced to the Muscat Securities Market (MSM).

Similarly, Al Maha Petroleum reported a 24.2 per cent decline in its net profit for the year ended December 31, 2019 at RO3.9mn compared to RO5.15mn in the corresponding period a year ago. Shell Oman Marketing also reported a 8.9 per cent decline in net profit for the year 2019 at RO10.99mn against RO12.05mn net profit reported in the previous year.

All three firms also reported declines in total sales. Oman Oil Marketing’s total revenue fell 6.7 per cent to RO583.25mn in 2019 compared to RO625.39mn in the previous year.

Al Maha Petroleum’s total sales for 2019 dropped by 4.6 per cent to RO465.13mn as against RO487.55mn in 2018. Shell Oman’s revenue remains nearly unchanged at RO524.83mn, registering a marginal decline of just 0.8 per cent from RO528.88mn in the previous year.

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