Annual Report Mauritius
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REPORT 2017 ANNUAL MAURITIUS VIVO ENERGY VIVO ENERGY MAURITIUS ANNUAL REPORT 2017 Vivo Energy Mauritius VivoEnergyMtius Cover2018_Choisi.pdfCover2018_Choisi.pdf 2 24/9/18 4/9/18 5:09 5:09 PM PM C C M M Y Y CM CM MY MY CY CY CMY CMY K K Who we are 3 Our Vision 4 Our Values 5 Chairman’s Message 6 Managing Director’s Report 8 Strategic Review 12 Review of Operations 13 Retail 13 Commercial 14 Aviation 14 Marine 14 Liquefied Petroleum Gas (LPG) 14 Lubricants 15 Customer Service Centre 15 Product Supplies and Distribution 16 Human Resources 16 Community Investment 17 Health, Safety, Security and Environment 17 History of Vivo Energy in Mauritius 18 Our Shareholders 19 Financial Statements 20 Directors’ Report 21 Secretary’s Report 24 Corporate Governance Report 26 Statement of Compliance 53 Independent Auditor’s Report 54 CONTENTS Income Statement 61 Statement of Comprehensive Income 62 Statement of Financial Position 63 Statement of Changes in Equity 64 Statement of Cash Flows 65 Notes to the Financial Statements 66 Notice of Meeting of Shareholders 111 Proxy Form 113 Vivo Energy Mauritius Limited Annual Report 2017 1 WHO WE ARE A strong and growing presence across Africa Focused on fuelling Africa’s future, we make our customers’ lives easier and their experience with us more convenient, enjoyable and rewarding. We offer high-quality products and services to our customers, setting new standards for safety, innovation and service, wherever we operate. Vivo Energy is the company behind the Shell brand in Africa and is jointly owned by Vitol and Helios Investment Partners. The company has a strong and growing retail presence in countries across Africa. It sources, distributes, markets and supplies Shell’s high-quality fuels and lubricants to retail and commercial customers across the continent. Vivo Energy was established on 1st December 2011 to distribute and market Shell-branded fuels and lubricants. Vivo Energy operates in Retail, Commercial Fuels, Marine, Aviation (in partnership with Vitol Aviation), Liquefied Petroleum Gas and Lubricants in Mauritius. The Shell brand has been present in Mauritius since 1905. Vivo Energy Mauritius Limited (VEML) is a public interest entity as defined by law. It employs 124 people, operates 47 service stations under the Shell brand and has access to 41,191 metric tonnes of fuel and 4,175 metric tonnes of LPG storage capacity. Ownership and our shareholders’ commitment Vivo Energy is jointly owned by the energy and commodities company Vitol and the Africa focused private investment firm Helios Investment Partners Their commitment is to: • invest to grow, • enhance the Shell brand and • drive performance through local accountability. INTRODUCTION Vivo Energy Mauritius Limited Annual Report 2017 3 Review of Operations OUR VISION Becoming Africa’s most respected energy business OUR VALUES We are judged by how we act and our reputation is upheld by how we put into practice our core values of honesty, Our vision is to become Africa’s most respected energy business. integrity and respect for people. To become Africa’s most respected energy business is not an end in itself. It is the logical consequence of doing things the These values underpin all the work we do and are the foundation of our business. We always strive to uphold them, in right way, realising the full potential of our people and our business partners, and creating a new benchmark for quality, whatever situation we find ourselves in. Indeed, they are crucial to our success and growth as a company, and to achieving excellence, safety and responsibility in Africa’s downstream energy marketplace. our vision. We know that respect is earned and that actions speak louder than words. We strive constantly to behave ethically, These core values are encapsulated in our General Business Principles and Code of Conduct, which outline clear, responsibly and honourably in everything we do. We take care of our people, our customers and the local communities concrete and detailed principles and ethical actions by which we should conduct ourselves, and drive the behaviour and the environment in which we operate. expected of every employee, in every Vivo Energy operation, at all times. We meet the highest international Health, Safety, Security and Environmental (HSSE) standards. We continue to invest We employ a diverse group of people and value the benefits this brings. We respect the human rights of our employees in our operations, building stronger partnerships and implementing world-class safety practices. We set an example for and strive to provide them with safe working conditions, promote the development of their talents and give them others to follow. channels to report concerns. Above all, we grow our business by hiring, training and motivating the best local people, sharing the rewards of success We also firmly believe in the fundamental importance of trust, openness, teamwork, professionalism and pride in what and investing in the communities in which we operate. we do. 4 Vivo Energy Mauritius Limited Annual Report 2017 Vivo Energy Mauritius Limited Annual Report 2017 5 ReviewChairman’s of Operations Message Dear Shareholders, Following my recent appointment as My focus as Chairman will be on Chairman of the Board of Directors of taking advantage of VEML’s distinctive Vivo Energy Mauritius Limited (VEML) combination of experience and in May 2017, I am pleased to present innovative capability, where expertise the Company’s annual report and is captured and applied to new financial statements for the year ended technologies that generate more value 31 December 2017. for our customers and shareholders. VEML continued to perform solidly in I would like to thank my other board 2017, with sales increasing by Rs 1.37 members for their service, and billion (15%) between 2016 and 2017. particularly pay tribute to our previous Chairman, Mr Christian Chammas, With a continued challenging economic for everything he has done for our environment in 2017, VEML managed company during his period as Chairman. to maintain its competitive advantage and stayed ahead of competition, with It is gratifying to see the management almost all parts of the business growing team, led by Managing Director Kiran volumes compared to the previous Juwaheer, relentlessly exploring new year. Only Marine volumes were less opportunities and addressing the than the previous year, attributed to challenges for the business. I would like an exceptional performance in this to thank them and all the staff of VEML sector during Q1 2016 and significant for their hard work, dedication and MESSAGE competitive intensity. contribution to our success. Despite these volume increases, 2017 With such a strong team in place, and profit decreased by Rs 41 million the values that employees and the (-13%) compared to the previous year. management continue to demonstrate The difference is largely attributed to at Vivo Energy Mauritius, I am highly Marine volume loss and the negative optimistic that they will take the impact of exchange rate losses, due to company to even greater heights the declining dollar versus the rupee. and one step closer to achieving Vivo Energy’s vision of becoming Africa’s VEML has continued to invest to most respected energy business. CHAIRMAN’S become more efficient, strengthen and grow the existing business and build Thank you for continuing to put your the reputation of the company with faith in us. customers and other stakeholders. The company has an excellent track record, and has consistently performed well David Mureithi over recent years. Chairman 6 Vivo Energy Mauritius Limited Annual Report 2017 Vivo Energy Mauritius Limited Annual Report 2017 7 ManagingReview Director’s of Operations Report 2017 was a good year for VEML overall, In the regulated inland environment, despite the economic growth of the we finally obtained a slight margin country being less than expected. The increase in August 2017, although we company faced many challenges, yet were justifiably expecting a higher we seized new opportunities with margin review. Still, this increase vigour to further grow the business. helped the company in mitigating the effect of costs hikes. Economic environment The inland market continued to We kept investing by opening a quick grow at a healthy but slow rate, service restaurant at Arsenal, a shop although some sectors such as the at Relays in Quatre-Bornes and a new Construction and Transport industries station at Diolle junction in Vacoas. lagged behind. Retail customers With regard to the international Retail customers enjoy convenience, market, the increase in the number of and are now looking to do more than tourists and the signing of new airspace just refuel when they visit our service agreements had a direct impact on the stations. We continued on our journey REPORT number of flights to Mauritius in 2017. of innovation and convenience to This resulted in the Aviation industry respond to customer demand, and growing by 7%. as a result, more and more of our forecourts are becoming one stop In parallel, the partial liberalisation shops. of marine fuel imports, coupled with measures to make port dues more After the launch of our loyalty card competitive, have boosted marine in 2016, we took a quantum leap traffic. There has been a resulting and introduced an online shopping increase of 40% in bunkering demand, site. With ‘welcome online’, we offer which has been positive for the our customers the opportunity to MANAGING country. place orders for groceries, fresh fruits and vegetables online and collect Business performance their products from a Shell service The economic environment was station at their convenience, and at a DIRECTOR’S favourable for the Marine business competitive price. which gave VEML more means to compete in the regional Marine We continued incentivising our industry. At the same time, there have loyal customers and making them been more players in the Mauritius come back for more.