Teboil Annual Report 2000
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ANNUAL REPORT 2000 CONTENTS YEAR 2000 Companies in brief 1 International oil trade 2 General Manager’s review 3 Company activities 4 FINANCIAL STATEMENTS Reports by the Boards of Directors 10 Profit and Loss Accounts 12 Balance Sheets 14 Comments on the Financial Statements 16 Statements of Changes in Financial Position 18 Auditors’ reports 18 AT YOUR SERVICE Company management 20 Company directory 21 COMPANIES IN BRIEF 1 Oy Teboil Ab markets oil product and related services to operation over many years and the company’s nationwide private consumers, companies, industry and municipalities storage network ensure guaranteed deliveries even in and state organisations. The company provides services to exceptional circumstances. traffic through its nationwide service station and diesel Both companies have been a feature of Finland’s oil automat networks. markets for almost 70 years. Oy Teboil Ab commenced The basic products in the range are gasolines, diesel operations in Helsinki in 1934, and Suomen Petrooli in fuel, lubricants produced at Hamina plant, liquid gas and Vyborg in 1932. The companies became affiliated in 1948 light and heavy fuel oils. In product development, priority is from which time the companies have had joint management given to faultless quality and the minimum of environmental and head offices in Helsinki. impact. Since the 70’s Oy Teboil Ab’s market share of oil Oy Teboil Ab’s sister company, Suomen Petrooli Oy – product sales to consumers has been more than 20 per Finska Petroleum Ab, is responsible for the acquisition of oil cent. This market share places us in the position of the products from both domestic and international markets. second largest oil company in Finland. Good relations with oil refineries that are the result of co- OY TEBOIL AB AND SUOMEN PETROOLI OY KEY FIGURES 2000 1999 1998 1997 1996 Sales1) 1 000 t 1 648 1 776 1 771 1 804 1 894 Market share % 20.1 20.9 21.2 22.0 22.8 Turnover FIM mill. 6 665 5 387 3 977 4 344 4 081 Operating margin FIM mill. 144 193 25 110 196 Planned depreciation FIM mill. 78 72 74 72 71 Net interest FIM mill. 2 2633 Other income/expenditure FIM mill. 16 -34 0 -6 1 Taxes FIM mill. 36 29 0 25 48 Result for the financial year FIM mill. 81 82 0 58 114 Investments FIM mill. 77 80 46 150 100 Storage tank capacity2) 1 000 m3 769 853 880 925 920 Service stations and distribution points installations 296 299 304 302 304 Personnel at the end of the year persons 417 451 458 471 495 Adjustment between Teboil and Suomen Petrooli are eliminated. 1) Includes sales to other oil companies, bunker deliveries to foreign-going vessels and exports. 2) Includes rented storage capacity INTERNATIONAL OIL TRADE 2 The international economy continued to develop favourably which was about 10 dollars more than in the previous year. in the year 2000. Rate of growth in the OECD countries was Oil product prices generally reflected the rise in the greater than at any time in more than ten years. Economic price of crude oil. The peak record level of world market growth in the United States slowed further, production gasoline prices reached in the summer began to calm down growth in the EU accelerated and the situation in Russia and towards the autumn. When the heating season began, prices Asia improved significantly. of middle distillates rose faster than those of other products. At the beginning of the year, North Sea Brent crude The value of the US dollar continued to rise almost cost 25 US dollars per barrel. The price fell in April to 20 US throughout the whole year. The exchange rate was at its dollars per barrel, the lowest level of the year. Thereafter the lowest at the beginning of January when the dollar cost 5.74 price rose until October when the highest level of the year, marks, and at its highest at the end of October when the 38 US dollars per barrel, was reached. For the rest of the dollar cost 7.23 marks. The average rate for the year was year the price remained at about 30 US dollars per barrel. 6.47 marks against an average of 5.60 marks in the previous The average price for the year was 28 US dollars per barrel, year. US-DOLLAR EXCHANGE RATE CRUDE OIL PRICE DEVELOPMENT DEVELOPMENT IN 2000 IN 2000 FIM USD/bbl 7,40 38 7,20 36 7,00 34 6,80 32 6,60 30 6,40 28 6,20 26 6,00 24 5,80 22 5,60 20 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 GENERAL MANAGER’S REVIEW 3 At the close of the past millennium, the project’s operating models were the oil market situation changed modified. SOILI concentrates on significantly, not only in Finland but restoring soil at service station sites. also in Europe as a whole, and The highest-profile occasion was globally. Beginning in early 1999, price the opening of a new traffic station, levels rose continuously. As a result of Teboil Pirkanhovi, in Lempäälä, this development acrimonious adjacent to the Helsinki-Tampere discussions took place, particularly in motorway. The inauguration of the Central Europe, on matters concerning traffic station coincided with the taxation on oil products and the opening of the motorway in October. impact of prices, which were Pirkanhovi is our biggest service considered to be high, on the national station investments in the past few economy and on the lives of ordinary years and I believe that it succeeded in entrepreneurs and people generally. It both its planning and customer service appears that oil markets will not in the because immediately it was opened, it near future return to their customary became one of the most popular balanced and stable levels. refuelling and resting places in Finland. Changes in international and domestic oil markets also In accordance with our acquisition policy, the company presented companies in the oil industry with a new purchased oil products from several different sources, from situation. A thorough reappraisal of company operations was both domestic and foreign refineries. As a result of having initiated at Oy Teboil Ab. At the first stage of the project, the several sources of supply, and the company’s nation-wide company’s activities and procedures were examined in terms storage network, product deliveries to customers worked of quality, environmental and safety aspects. The review precisely in accordance with agreements. showed that certain areas of the basic structure of the Oil product purchases were in conformance with Fin- organisation had become outdated, and led to a re- nish quality requirements. Additionally, the primary objective organisation of the whole commercial organisation of Oy Te- of the company’s own product development was the boil Ab in the year under review. continuous improvement of product quality and application The new, business unit based organisation was properties, to meet the requirements of even the newest officially implemented at the beginning of 2001. The most engines and equipment that are in customers’ use. A good important objective of the organisational changes is the example of this renewal of products is in gasoline and diesel deepening, widening and in every respect improving of our oil traffic fuels, which was completed in the early part of the customer service. Increasing the efficiency of company year. Due to its new additives our diesel oil is now even activities, decreasing cost levels and unravelling overlaps, more suitable as a fuel also for light diesel powered which had been generated over the years in the old vehicles. The greatest enhancement in fuel oils concerned operating pattern, were also central objectives. Most of the heavy fuel oil. The environmental properties of the oil were changes are now in effect, but some details and other improved with an additive. organisational structures still need to be streamlined. The commercial result of Oy Teboil Ab and Suomen Oy Teboil Ab and its sister company Suomen Petrooli Petrooli Oy for the year 2000 was very satisfactory despite Oy will both soon be 70 year old companies and already being weakened by the – intrinsically healthy – fall in oil belong to the so-called “veteran” category. With the reforms product prices, which started in the latter part of November. now made we have ensured that the companies will I thank our personnel for tireless work both in order to continue to be on track for sustainable development. achieve result and also to develop our activities. Customers at our service stations can already today see I offer my warmest thanks to our companies’ the results of the development of services in different parts customers, business associates and Teboil dealers for their of the country. The company continued renewing forecourts good co-operation during the year under review. in its network in the year under review, and at the end of the year there were more than 40 Teboil Stations conforming to our uniform business concept. Simultaneously with the renewal of service station buildings and interiors, renovations required by decision no. 415/98, handed down by the Ministry of Trade and Industry, were carried out at pump islands and tank areas, in order to increase environmental safety and also to make refuelling more Boris Diyachenko pleasant. Oy Teboil Ab joined the oil industry’s mutual SOILI General Manager project at the end of the year under review when some of Oy Teboil Ab – Suomen Petrooli Oy COMPANY ACTIVITIES 4 Oil product consumption in Finland declined consumption fell.