Annual Report 2011

Annual Report 2011 Vivo Energy Mauritius Limited Cemetery Road Roche Bois Tel: (+230) 206 1234 Fax: (+230) 240 1043 www.vivoenergy.com Shell trademarks used under license ContentsNotes to the Financial Statements 1 Our Vision and Mission 3 Our Values 3 Chairman’s Message 4 Managing Director’s Report 5 Review of Operations 7 Aviation 7 Marine 7 Liquefied Petroleum Gas (LPG) 8 Retail 9 Commercial 10 Lubricants 11 Customer Service Centre 11 Product Supplies and Distribution 12 Human Resources 12 Health, Safety, Security and Environment 13 History of Vivo Energy in Mauritius 15 Directors’ Report 18 Secretary’s Report 21 Corporate Governance Report 22 Independent Auditor’s Report 45 Statement of Comprehensive Income 47 Statement of Financial Position 48 Statement of Changes in Equity 49 Statement of Cash Flows 50 Notes to the Financial Statements 51 Vivo Energy Mauritius Limited Annual Report 2011 2 Vision and Mission 3 Our Vision and Mission Vision We make the difference through our people, a team of dedicated professionals, who value our customers, deliver on our promises and contribute to sustainable development. Mission To safely market and distribute energy and petrochemical products while offering innovative value added services. Our Values Vivo Energy employees share a set of core values – honesty, integrity and respect for people. We also firmly believe in the fundamental importance of trust, openness, teamwork and professionalism, and pride in what we do. Vivo Energy’s key principles are: • safety • entrepreneurial flair • ambition • dynamism • responsiveness • empowerment • social and ethical responsibility • environmental care Vivo Energy Mauritius Limited Annual Report 2011 Vivo Energy Mauritius Limited Annual Report 2011 4 Chairman’s Message Managing Director’s Report 5 Chairman’s Message Managing Director’s Report manner. Indeed, the challenge in 2011 was to keep the We have a good safety record as a result of our proactive focus to maintain the “Business as Usual” mindset, whilst the management of all risks. We have had three incident-free transformation was happening. years in a row. We have once again successfully delivered on our “Goal Zero” target as far as accidents and incidents I would like to congratulate and thank the staff of Vivo are concerned, causing no harm to people, assets and the Energy Mauritius Limited under the leadership of Mr Pawan environment. Juwaheer for the dedication and professionalism with which they have gone about their day to day business, never losing Our main achievement however remains the successful sight of the key business priorities, with an unrelenting focus transition from Shell Mauritius Limited to Vivo Energy on safety. I would like to thank the management for delivering Mauritius Limited in 2011. After more than a year of hard quality results. I also wish to thank the board of directors for work, we officially left the Shell Group on 01 December their guidance and direction towards Vivo Energy Mauritius 2011 to join Vivo Energy, made up of Vitol, Helios and Shell. Limited. At the root of this seamless transition remains our open communication to all our groups of stakeholders. Aware I am happy and excited to join the Now it is the time for us all to move on, with a real sense 2011 has been an eventful as well as that there would be questions asked and uncertainties board, and I am honoured to become of optimism and excitement at the future. A future that successful year. felt, we proactively and regularly engaged our employees, the chairman. I look forward to working combines the strength of the Shell brand and products customers, the authorities, the wider business community with all so that together we continue Vivo for our consumers with the greater growth ambition and Sales volumes were 15% better than 2010 thanks mainly to and the public at large. Energy Mauritius Limited’s successful aspiration of our new majority shareholders. Aviation and Marine. On an equally satisfying note, operating journey. profits have improved across the various segments of the Indeed, the fact that 90% of our minority shareholders Looking ahead, we aim to remain the leader in safety, to Company. Distribution costs were up by 16%, in line with remained with the new company is a mark of confidence For year 2011, Vivo Energy Mauritius Limited recorded a continue to add value to the business of our customers the growth in sales volumes, as cost efficiency continues to and trust in this new entity, Vivo Energy Mauritius Limited will 30.2% growth in revenue from Rs 9,454 million in 2010 while delivering profitable growth and creating greater value remain a pillar inside the operating structure. Administrative certainly be retaining what used to constitute our strengths: to Rs 12,313 million. The company’s profit after tax was as for our shareholders. We will work to make Vivo Energy the expenses have been contained to within 7% increase its people, the Shell brand and our Shell products. Coupled good as in 2010, Rs 325 million in 2011. most respected energy business in Mauritius and in Africa, a compared to last year. with the new shareholders appetite to grow in Africa, we business where the best people want to work. now have a useful combination of aspirations that is set for 2011 has been a very challenging year, on one hand 2011 has been a year of expansion and growth. We have exciting time to come. We have ended 2011 at the dawn with the economic downturn and on the other with the I look forward to our making it happen with enthusiasm, extended our retail network by opening a new service of positioning Vivo Energy as the most respected energy transition from Shell Mauritius Limited to Vivo Energy commitment, creativity and with the ambition to win. I am station at Ebene. We have acquired a new barge, Tristar company in Mauritius and Africa. Mauritius Limited. After weeks and months of hard work, confident that we have the portfolio, people and capabilities Glory, to replace l’Ami Constant. I have full confidence that the transition occurred in the most seamless and successful required to make the most of the opportunities ahead. these two investments will individually provide the building On this note, I would like to thank our stakeholders for blocks as we pursue our journey for sustainable growth. bearing patience with us. I have full trust that they will Honore Dainhi Chairman 18 April 2012 Vivo Energy Mauritius Limited Annual Report 2011 Vivo Energy Mauritius Limited Annual Report 2011 Review of 6 Chief Executive Officer’s Report Operations For the past 70 years, Vivo Energy Mauritius Limited keep collaborating for the betterment of the company. In Honore Dainhi. Honore Dainhi holds the position of Chief Aviation (formerly Shell Mauritius Limited) has been actively engaged particular, I am grateful to our staff for their full support and Operating Officer of Vivo Energy. He has successfully grown in the marine business and has operated a dedicated enthusiasm during the transition process. the business in a variety of roles and geographies. He brings The aviation business has shown a good recovery on bunkering depot in the heart of Port Louis. The State added value with his wealth of experience, new outlook and profitability in 2011 compared to 2010. The general aviation Trading Corporation (STC) exclusively imports fuels within We hold responsible citizenship close to our hearts and vision. I look forward to having him aboard as we continue industry recovered in 2011 with more flights in Plaisance Vivo specifications for fuel oil and gas oil. Our customers have worked with the community in the fields of education, to grow the company. though very far away from its peak in 2008. The industry can obtain a certificate of quality upon request after sports, civic responsibility and environment. We worked Finally, a special word of thanks to the board of directors for still faces many challenges and the sustained rise in fuel costs recertification in an approved laboratory. with local communities and the authorities on a national their continued support. is a constant issue to airlines. education campaign to sensitize the general public on safety Our aim at serving our customers with quality recertified precautions when using gas for domestic and automotive Having won a major share of the Air Mauritius tender late products, ensuring availability of products both marine purposes. We sponsored lifeskills training to vulnerable Pawan K Juwaheer 2010 contributed to an increase in volumes in 2011. Though gasoil, marine fuel oil and a range of marine lubricants, at an children in partnership with the NGO, Junior Achievement Managing Director there is a high level of competition in the aviation business optimum price, serviced either through the quays or through des Mascareignes. We supported the development of sports April 20, 2012 in Mauritius, resulting to very low margins, these volumes our barge, L’Ami Constant, whichever is more convenient to through our contribution to Club Maurice for the Indian helped us to decrease our unit costs and reversed the the customer has proved to be a winning formula. We have Ocean Islands Games. Our commitment to environment business financial trend. also seen a regain in activities at the port with more vessels protection remains high on our agenda. We continued with coming in for different purposes and at the same time, the our projects of embellishment of Roche Bois area and the The sales of Shell shares to Vivo Energy implied a change local marine business improved with more fishing vessels rehabilitation and development of the Rivulet Terre-Rouge in the strategy of the local aviation business. As from 1st calling at Port Louis and new players getting in the fishing Estuary Bird Sanctuary.

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