Mauritius Annual Report Vivo
Total Page：16
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Cover2016.pdf 1 4/11/17 10:37 AM C M Y CM MY CY CMY K ELEMENTS OF SUCCESS CONTENTS 1 3 Id 2 Fs 4 Introduction Financial statements St Cg Strategic report Corporate governance Id 2 INTRODUCTION St 14 STRATEGIC REPORT Fs 24 FINANCIAL STATEMENTS Cg 31 CORPORATE GOVERNANCE We 3 Who we are Op 15 Review of Operations Di 26 Directors’ Report Cr 31 Corporate Governance Report Vi 4 Our Vision Hs 21 History of Vivo Energy in Mauritius Sc 29 Secretary’s Report Co 56 Statement of Compliance Va 7 Our Values Sh 22 Our Shareholders Au 59 Independent Auditor’s Report Ch 8 Chairman’s Message In 63 Income Statement Md 10 Managing Director’s Report Ci 64 Statement of Comprehensive Income Fp 65 Statement of Financial Position Ce 66 Statement of Changes in Equity Cf 67 Statement of Cash Flows Nt 68 Notes to the Financial Statements WHO WE ARE A strong and growing presence in 16 countries across Africa Vivo Energy is the company behind the Shell brand in Africa and Helios Investment Partners. Vivo Energy operates in and is jointly owned by Vitol and Helios Investment Partners. Retail, Commercial Fuels, Marine, Aviation (in partnership The company has a strong and growing presence in 16 with Vitol Aviation), Liquefied Petroleum Gas and Lubricants countries across Africa. in Mauritius. The Shell brand has been present in Mauritius since 1905, celebrating its 111th anniversary in 2016. It sources, distributes, markets and supplies Shell’s high-quality fuels and lubricants to retail and commercial customers Vivo Energy Mauritius Limited (VEML) is a public interest across the continent. Vivo Energy was established on 1st entity as defined by law. It employs 121 people, operates December 2011 to distribute and market Shell-branded 48 retail stations under the Shell brand and has access to fuels and lubricants. Vitol and Helios each own 40% of Vivo 34,500 metric tonnes of fuel and 2,675 metric tonnes of Id Energy, with Shell holding the remaining 20%. Shell and Vivo LPG storage capacity. Lubricants is 50% owned by Shell and 50% owned by Vitol Introduction 2 Vivo Energy Mauritius Limited Annual Report 2016 Vivo Energy Mauritius Limited Annual Report 2016 3 OUR VISION Becoming Africa’s most respected energy business Our vision is to become Africa’s most respected energy business. To become Africa’s most respected energy business is not an end in itself. It is the logical consequence of doing things the right way, realising the full potential of our people and our business partners, and creating a new benchmark for quality, excellence, safety and responsibility in Africa’s downstream energy marketplace. We know that respect is earned and that actions speak louder than words. We strive constantly to behave ethically, responsibly and honourably in everything we do. We take care of our people, our customers and the local communities and the environment in which we operate. We meet the highest international Health, Safety, Security and Environmental (HSSE) standards. We continue to invest in our operations, building stronger partnerships and implementing world-class safety practices. We set an example for others to follow. Above all, we grow our business by hiring, training and motivating the best local people, sharing the rewards of success and investing in the communities in which we operate. 4 Vivo Energy Mauritius Limited Annual Report 2016 Vivo Energy Mauritius Limited Annual Report 2016 5 OUR VALUES We are judged by how we act and our reputation is upheld should conduct ourselves, and drive the behaviour expected by how we put into practice our core values of honesty, of every employee, in every Vivo Energy operation, at all integrity and respect for people. times. These values underpin all the work we do and are the We employ a diverse group of people and value the benefits foundation of our business. We always strive to uphold this brings. We respect the human rights of our employees them, in whatever situation we find ourselves in. Indeed, and strive to provide them with safe working conditions, they are crucial to our success and growth as a company, promote the development of their talents and give them and to achieving our vision. channels to report concerns. These core values are encapsulated in our General Business We also firmly believe in the fundamental importance of Principles and Code of Conduct, which outline clear, concrete trust, openness, teamwork, professionalism and pride in and detailed principles and ethical actions by which we what we do. 6 Vivo Energy Mauritius Limited Annual Report 2016 Vivo Energy Mauritius Limited Annual Report 2016 7 CHAIRMAN’S MESSAGE Dear Shareholders, 2016 was another year of significant progress for Vivo Energy Mauritius Limited (VEML) with profit after tax registered was Rs 320 million in 2016, compared to Rs 283 million in 2015. Despite many challenges faced from the external environment in 2016, VEML has grown, investing in making its operations more efficient, adding new retail stations to its portfolio, growing its market share and adding new and refurbished convenience retail outlets. We had an excellent HSSE performance in 2016, exceeding the stringent targets set. I know that the team has worked hard to ensure the safety of our people and those around us. We have kept building the reputation of the company, never losing focus on doing business the right way, enhancing our environmental footprint through better quality goods, services and efficiency and playing an active part in our communities. In summary VEML is in great shape. We have set ambitious targets for 2017 and will continue to build on the positive results and momentum from 2016 to continue the sustainable growth of the company. I have no doubt that 2017 will be another important and successful year helping us progress towards our vision of becoming the most respected energy business in Mauritius. I offer my thanks to the directors for all of their contributions to and governance of VEML. I would also like to extend my appreciation to the Managing Director and his management team, for their drive in delivering results year on year. The progress we made in 2016, the value we created for our customers, and the financial results we delivered would not have been possible without the dedication and hard work of our employees, and I would like to express my gratitude to all of them for their efforts. Our strategy has delivered strong results for VEML and the Shell brand remains the preferred customer brand and market leader. This gives me every confidence that we will again grow the business in 2017 and create further value for you, our shareholders. Christian Chammas Chairman 8 Vivo Energy Mauritius Limited Annual Report 2016 Vivo Energy Mauritius Limited Annual Report 2016 9 MANAGING DIRECTOR’S REPORT Vivo Energy Mauritius has seen another year of strong growth in 2016 showing that we have the right strategy in place and that we have an excellent team of people who have brilliantly executed it. Looking back at 2016, the oil industry was filled with many challenges. Throughout the volatility of oil prices on the international market, continued slow-down of some sectors in the local market and increased competition both locally and internationally, we managed the challenges head-on and are building a stronger company year by year. BUSINESS PERFORMANCE Overall performance was good, we succeeded in maintaining our leadership position and we achieved favourable results in most segments of the business. The aviation business performed better in 2016 compared to previous years, and this was mainly due to several strategic cost efficiency initiatives driven during the course of the year. With regard to marine, we leveraged previous initiatives related to the partial liberalisation of fuel imports, including putting our new bunkering barge into operation, coupled with the supply of marine fuel oil 380 cst. Both our retail and LPG volumes grew in 2015. The margin increase in LPG midway through 2016 helped improve the financial performance. On the other hand the retail margin review by the regulator still remains overdue. Our commercial businesses delivered good overall performances too, despite below expectation growth in the construction and transport sectors. InvesTmenT Investing for growth remains our winning strategy. With the opening of our latest stations in Rivière noire and Diolle Junction, we now operate the largest network in the country with 48 shell-branded service stations. We upgraded a number of stations during the year, with a complete knock down and rebuild of our station in saint Paul. With the opening of the first KFC outlet on a station ats hell Golden in Goodlands and additional Hearty outlets, we increased our footprint of shops in 2016. We are pleased with the investment we made in our new LPG filling line, which is of higher capacity and more efficient than the previous one. In line with the general aspiration to further strengthen Port Louis as a bunkering destination, we increased our storage capacity in our Causeway heavy fuel oil depot. OuR CustomeR FOCus We maintained our excellent customer service levels and continued to be at the forefront of industry innovation. We launched new marketing campaigns, creating unique experiences for our smart Club members, whilst further growing our brand. Over and above allowing customers to accumulate and redeem points for rewards all year round, our Smart Club members won star prizes, namely a stay for two in a 5-star hotel which included a helicopter tour of the island, an all-inclusive package for two to watch the finals ofe uro 2016 in Paris and an environmentally-friendly home for our Christmas campaign.