Al Maha Petroleum Products Marketing Co has won a major 15-year contract from Petroleum Development Oman (PDO) for fuel supply and construction and operations of new filling stations.
‘The management of Al Maha Petroleum is pleased to inform shareholders and investors that the company has been awarded a major long-term contract by PDO for the construction and operation of new retail filling stations and fuel supply to PDO and its contractors,’ Al Maha Petroleum said in a disclosure to the Muscat Securities Market (MSM).
The PDO contract envisages an initial capital investment of RO8mn and the expected revenue is about RO35mn per annum including non-fuel revenue generated from this contract, Al Maha Petroleum said.
The 15-year contract is from August 23, 2020 to August 22, 2035, with the option to extend for five more years till August 22, 2040, the company added.
‘The contract is expected to contribute to the growth of the small and medium enterprises sector and benefit the local community significantly,’ Al Maha Petroleum’s disclosure said.
At a time when Oman’s oil marketing firms have witnessed a big slump in sales revenues and profits due to the COVID-19 pandemic, this long-term contract from PDO is likely to provide a much-needed boost to Al Maha Petroleum. With plummeting sales in retail and aviation fuel segments amid the COVID-19 crisis, Oman’s all three oil marketing companies reported sharp declines in their profits and revenues this year.
Al Maha Petroleum’s net profit dropped by 89 per cent during the January–September period of 2020 at RO328,000 compared to RO3.03mn net profit reported in the same period of 2019, according to the company’s financial report submitted to the MSM on Sunday.
Al Maha Petroleum’s total sales during the first nine months of 2020 dropped by about 28 per cent to RO254.5mn compared to RO352.5mn in the corresponding period of last year, mainly due to the drop in sales in retail and aviation segments.
‘The retail segment continues to be our main focus as we strengthen our approach to modernise the existing retail infrastructure and at the same time look forward to increasing our retail network throughout Oman by developing new sites,’ Al Maha Petroleum said in its financial report.
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