ENGEN-Annual-Report-2016.Pdf
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it’s more than just 2016 fuel annual report CONTENTS INTRODUCTION Financial Highlights 04 About Engen 05 Presence 06 COMMENTARY Board of Directors 08 Chairman’s Report 12 Managing Director’s Report 14 SECTORS Sustainablity Report 21 Human Resources 22 Corporate Social Responsibility & Investment 23 Financial Results 24 GOVERNANCE Governance 25 Management 30 Five Year Reveiw 32 ANNUAL CONSOLIDATED 35 FINANCIAL STATEMENTS it’s more fuelthan just 2 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 VALUES PERFORMANCE We actively pursue, define, measure and recognise excellence in all business activities. OWNERSHIP We are responsible and accountable for our actions and performance. We are committed to continuously finding new and better ways to deliver value to the business. EMPOWERMENT Our Employees have the capability, authority and resources to act and perform in their roles. They are trained to be competent in their current jobs and their potential is developed to meet the current and future needs of the Company. TEAMWORK We work together as one team to realise Engen’s Vision - to the benefit of the whole organisation. INTEGRITY We demonstrate ethical, fair and transparent behaviour. Our actions earn trust and respect from others. 3 FINANCIAL HIGHLIGHTS Engen Botswana Limited Net Asset Value Attributable continued to deliver robust financial results in 2016, in the PER SHARE PROFIT Net Asset Value Per Share = 317.12 thebe Attributable Profit = BWP 132,744,000 face of a challenging business environment. This was driven 234.57 275.24 234.57 326.45 317.12 120.26 128.20 63.96 109.68 132.75 THEBE THEBE THEBE THEBE THEBE MIL MIL MIL MIL MIL by a clear and focused strategy 350 140,000 underpinned by astute fiscal management, an industry-leading 300 120,000 management team, balanced and accountable corporate governance 250 100,000 structures, carefully selected dealers, best in sector logistics 200 80,000 and distribution capability. Our 150 60,000 commercial and retail channels continued to operate optimally 100 40,000 providing value adding solutions and excellent customer service. 50 20,000 0 0 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Earnings Ordinary Shareholders PER SHARE INTEREST Earnings per share = 83.1 thebe Ordinary Shareholders Interest = BWP 506,515,000 75.30 80.27 40.82 68.67 83.11 374.66 439.61 445.72 521.42 506.52 THEBE THEBE THEBE THEBE THEBE MIL MIL MIL MIL MIL 90 600,000 80 500,000 70 60 400,000 50 300,000 40 30 200,000 20 100,000 10 0 0 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 4 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 ABOUT ENGEN Engen Botswana Limited is Engen Limited’s majority shareholder is Petronas, the Malaysian national oil and a downstream petroleum gas company, which holds 70% of shares marketer that markets and is one of the leading sixty corporations in the world. Through this association, petroleum products and Engen has access to global resources and technology that enable it to become convenience services through a leading player in the downstream an extensive and well- petroleum industry in sub Saharan Africa and the Indian Ocean Islands. South serviced retail network. African-based Pembani Group, formerly Worldwide African Investment Holdings (WAIH), holds 20% of the Company. Today, Engen enjoys a significant presence in 16 Sub-Saharan African countries and the Indian Ocean Island States. 16 SUB SAHARAN COUNTRIES Extensive storage and distribution infrastructure, including: depots, terminals, 16 lubricant warehouses, ENGEN LIMITED a bitumen plant and Incorporated in South Africa 100% aviation facilities. 70% PETROLEUM INVESTMENT HOLDING Ltd. Mauritius LOCAL SHAREHOLDERS 135,000 30% BARRELS PER DAY Engen supplies the bulk fuel volume requirements of our South African market, our affiliates in Lesotho, Botswana and Swaziland, and half of our Namibian operation’s needs. SERVICE AND FILLING STATIONS 600 ENGEN filling stations ENGEN BOTSWANA LIMITED have convenience stores 100% Incorporated in Botswana 1500 ENGEN MARKETING BOTSWANA (PTY) LTD TONS 100% Incorporated in Botswana of product per hour including Lubricating 40 Oils Blending Plant (in Durban, SA) 5 PRESENCE OUR PRESENCE Engen Botswana Limited is the only oil company listed on the Botswana Stock Exchange. Our citizen empowerment drive is demonstrated by our broad-based shareholding, with over 1,100 Batswana holding 30% of our equity. Our majority shareholder, Petroleum Investment Holding Limited, Mauritius, holds 70% of equity, and it in turn is 100% owned by Engen Limited, based in South Africa. As a result, we have access to relevant infrastructure in South Africa and around the region. This ensures improved product availability. The Engen Group has also invested in storage and supply infrastructure in Beira, Mozambique, to ensure continuity of supply and to support marketing assets situated in Southern Africa. 6 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 KAZUNGULA PANDAMATENGA GUMARE MAUN TUTUME NATA RAMOKGWEBANA SEBINA MOPIPI ORAPA FRANCISTOWN LETLHAKANE GHANZI BOBONONG SELEBI-PHIKWE CHARLES HILL SEROWE PALAPYE RAMOKGONAMI MAHALAPYE KANG MOLEPOLOLE MOCHUDI MOSHUPA GABORONE LOBATSE TSABONG ENGEN FILLING Stations 7 BOARD OF DIRECTORS Directors of Engen Botswana continued to focus on ensuring the business mandate was delivered upon, providing strategic direction at every turn. Shabani Ndzinge Chimweta Monga Vhulahani Bvumbi (Chairman) (Managing Director) Non-Executive Director Independent Non-Executive Director Executive Director BCom, University of the North, BA, Dar Es Salaam, MS, MBA University of Lincolnshire Higher Diploma in Tax Law, UCT. Delaware, PhD Kent. and Humberside (UK) Bachelor of Accounting and Finance Zambia) Vhulahani jointed Engen Petroleum Shabani is an experienced leader, as a Senior Tax Analyst in 2011. He administrator and academic, with Chimweta studied Accounting and has since been promoted to Trading over 30 years of work experience. In Finance at the University of Zambia Manager for Southern Africa. He is 2011, he was appointed Deputy Vice and worked briefly as a computer responsible for managing Engen’s Chancellor of Botswana International programmer before joining first Citibank trading portfolio for all African University of Science and Technology and then Caltex. He was rapidly affiliates and the marine fuels business (BIUST), where he oversaw finance and promoted to Managing Director of in South Africa. He has extensive administration. He executed a similar Caltex Zambia before joining Chevron experience in trading, supply and tax. role at the University of Botswana and as a Regional Manager for Commercial previously headed the Business Faculty Business in Chevron’s associated at the same institution. Shabani is a companies based in South Africa. member of several Boards, including Chimweta was appointed Managing Botswana Accountancy College, the Director of Engen Botswana in 2012, Institute of Development Management and has over 25 years of experience in and TA Sebube (Proprietary) Limited. the oil industry in Southern Africa. He is a former Board Member of Botswana Development Corporation, the University of Botswana and BIUST. 8 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 ENGEN BOTSWANA LIMITED | ANNUAL REPORT 2016 Chwayita Mareka Anthony Siwawa Frederik Kotze Non-Executive Director Non-Executive Director Non-Executive Director Chartered HR Practitioner (CHRP), BSc Hons Aston, MBA Chicago Business Science Hons, National Diploma in Public Stellenbosch, MBA Stellenbosch Management and Administration, Anthony has extensive experience in Border Technikon, Management developing and formulating business Frederik is a Director of three Petronas Development Programme (MDP), strategy, economics and finance. He subsidiaries in Malaysia, namely University of South Africa, Master Petronas Ethylene Malaysia, Petronas of Business Administration (MBA), has worked in primate equity, venture University of South Africa. capital, investment banking and Polyethylene Malaysia, and Petronas corporate finance and management Polypropylene Malaysia. He joined Chwayita has 15-years of experience consulting, and has developed a Engen Petroleum in 1993 as a retail in HR and management roles. She thorough understanding of the pricing executive and has served in is currently the Head of Human Southern African region. He is the various capacities throughout the Resources for Engen Petroleum founder and Managing Director private group. He is currently the Head of the Limited, responsible for managing the equity fund manager VPB (Proprietary) International Business Division. learning and development function for Limited and founded corporate finance Engen, and its affiliates in Sub-Saharan company AMS Capital. He sits on Africa. She joined Engen as its Talent various Boards in Botswana and across Development Manager in 2011, having the region, including the South African spent 6-years in various HR roles with Venture Capital Association, and the the Coega Development Corporation. African Venture Capital Association. He is a sought-after speaker throughout Africa and the United States. 9 BOARD OF DIRECTORS Andrew Bryce Robert Matthews Leonard Makwinja Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director BSc University