Annual Report 2018 Energising C Ommunities

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Annual Report 2018 Energising C Ommunities 2018 ANNUAL REPORT ANNUAL COMMUNITIES ENERGISING ENERGISING COMMUNITIES PUMA ENERGY ANNUAL REPORT 18 20 CONTENTS Our purpose 08 The Puma Energy spirit provides energy CHIEF EXECUTIVE Our new Chief Executive, Emma FitzGerald, solutions for communities in high-potential provides her initial thoughts on the business. countries around the world. We pride ourselves on developing diverse and expert local teams with an agile approach to safely and sustainably serving customer needs. Our mission is to energise communities to help drive growth and prosperity. www.pumaenergy.com 24 WE STORE SAFE AND SOUND We have developed an unrivalled global infrastructure for the safe and secure storage of our products. Our global and local hubs operate 24/7 and meet the highest safety and quality standards. 01 1 BUSINESS OVERVIEW Puma Energy key statistics 04 02 Financial highlights 06 WE SUPPLY ANYWHERE, ANYTIME Chairman’s statement 07 We provide energy solutions for customers around the world, Chief Executive’s review 08 night and day, wherever they are. We make it our business to A year in review 10 be there to supply whatever they need, when they need it. At a glance 14 Business model 16 Where we operate 18 Measuring performance 20 2 PERFORMANCE REVIEW Market review 26 Business review 32 Our role in the oil life cycle 34 Regional performance 50 Sustainability review 64 Risk management 70 Financial review 84 3 GOVERNANCE Our Board of Directors 90 Our Executive Committee 92 Corporate Governance report 94 4 FINANCIAL STATEMENTS Financial statements 102 Independent auditor’s report 139 100 WE CONNECT CUSTOMERS EVERY DAY 88 As the world turns faster and faster, we have WE DISTRIBUTE FAR AND WIDE the technology and know-how to provide Our transportation network ensures we can deliver far energy solutions for our customers around and wide. From the world’s busiest cities, to the most the clock, connecting them to the next inaccessible places on earth, we ensure our products business opportunity, or even the adventure arrive in perfect condition every time. of a lifetime. 02 BUSINESS OVERVIEW WE SUPPLY Energising communities means delivering for our customers night and day, wherever they are. We make it our business to be there to supply whatever they need, when they need it. WE SUPPLY ANYWHERE, ANYTIME PUMA ENERGY ENERGISES COMMUNITIES 01 Puma Energy key statistics 04 / Financial highlights 06 / Chairman’s statement 07 / Chief Executive’s review 08 / A year in review 10 / At a glance 14 / Business model 16 / BUSINESS OVERVIEW Where we operate 18 / Measuring performance 20 / 03 04 BUSINESS OVERVIEW PUMA STATISTICS PUMA Whether our customers are working hard to expand their business, or setting out on the journey of a lifetime, we can help. Puma Energy's dynamic approach ENERGY to providing energy solutions to customers ensures they always KEY have what they need. STATISTICS 48 1,700 8,278 COUNTRIES TRUCKS LOADED EMPLOYEES EVERY DAY 106 24,824k m3 TERMINALS SALES VOLUMES 7.7m m3 TOTAL STORAGE CAPACITY 15,089k m3 THROUGHPUT VOLUMES 05 BREAKDOWN OF 270m 191 RETAIL SITES DRIVERS THROUGH OUR CAR WASH FACILITIES RETAIL SITES IN 2018 A 858 AFRICA 148 20,500 B RESTAURANTS/CAFES B2B CUSTOMERS 1,310 AMERICAS C 914 MIDDLE EAST AND ASIA-PACIFIC 84 3,082 AIRPORTS RETAIL SITES SERVED AROUND THE WORLD 139 TRUCK STOPS AROUND THE WORLD 1,291 SHOPS AT RETAIL SITES 06 BUSINESS OVERVIEW FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS With a significant programme of major investments now behind us, we have built a resilient business model that provides a strong base for organic growth. Puma Energy's focus is now firmly on optimising and extracting value from our extensive global asset base and improving our return on investment, cash flows and productivity. 24,824k m3 15,089k m3 SALES VOLUMES THROUGHPUT VOLUMES (2017 22,794k m3) (2017 16,634k m3) US$17,921m US$1,460m NET SALES GROSS PROFIT (2017 US$15,181m) (2017 US$1,672m) US$554m US$231m EBITDA ORGANIC CAPITAL EXPENDITURE, NET (2017 US$740m) (2017 US$298m) US$122m US$3,159m OPERATING PROFIT NET FIXED ASSETS (2017 US$322m) (2017 US$3,614m) 07 GRAHAM SHARP Our response to the devastating eruption of Volcán de Fuego in Guatemala in 2018 was another example of the value we bring to communities, contributing fuel and equipment to assist the tremendous efforts made by CHAIRMAN’S emergency service organisations in the country. Puma Energy places great importance on safely and sustainably serving customer needs, and I was proud to see the STATEMENT launch of our sixth annual road safety campaign in 2018. Tragically, Puma Energy has built a unique platform in while our overall health and safety the Downstream energy business with strong record was very good in the year, one of our employees died as a fundamentals. This gives the Company a result of a road traffic accident, powerful opportunity to play an important underlining the importance of our efforts in this area. I would like to part in a fast-changing energy landscape. express our deepest sympathy to the family of the colleague involved 2018 was a year of transition for We have a strong platform for and be clear that the Group Puma Energy as we said farewell growth, with state-of-the-art continues to work hard to reduce to our longstanding CEO Pierre infrastructure in place and highly the possibility of future accidents Eladari and welcomed Emma capable people across the like these. We are also actively FitzGerald as our new CEO who business. However, 2018 was a working in many countries with started in January 2019. Under tough year for Puma Energy. road safety organisations and Pierre’s leadership Puma Energy Commercial performance was on local road safety campaigns has built a unique platform in the steady with sales volumes through the Puma Energy Downstream energy business with increasing by almost 10% over 2017, Foundation. strong fundamentals. This gives the but our margins were impacted by company a powerful opportunity headwinds in some of our key We continue to focus on good to play an important part in a markets, including the appreciation corporate governance. Our new fast-changing energy landscape. of the US dollar against the local Code of Conduct is now embedded I want to thank Pierre on behalf of currencies we trade in, resulting across the business and we have the Board, our employees and in a lower financial result. a robust operation with the shareholders for his leadership necessary safeguards in place during this first phase of the I would like to extend my thanks to monitor and ensure this is Emma FitzGerald development of Puma Energy as to our management teams and to adhered to. A whistleblowing one of the leading global energy our people who have worked hard hotline is available to all employees, will bring new companies and to wish him well to steer the business through this making it easier for individuals to insights to for the future. challenging environment. Once act if they encounter any potential again, our teams in the Americas breaches of our standards. the Group, The Board and shareholders are have performed very well. I am also You can read more about this particularly delighted that Emma FitzGerald delighted to see the progress made in our governance section on has taken on the challenge of by our global bitumen and aviation pages 88-100. with her extensive leading the next phase of Puma teams, who have achieved good retail experience, Energy’s development. Emma has growth in the year, despite Looking forward, I believe the which will prove a strong track record of delivery challenges in their markets. new insights Emma FitzGerald at Shell, where she managed a will bring to the Group, particularly invaluable to our number of downstream energy In addition to meeting the business with her extensive retail experience, management’s businesses around the world, and challenges, during 2018 Puma will prove invaluable to our most recently at National Grid and Energy people continued to make management’s stewardship and stewardship and Severn Trent Water in the UK where a wider impact on the communities development of Puma Energy as development of she was responsible for gas and in which we operate. For example, a global brand. Regardless of the water and waste networks. in Puerto Rico, we supported the macroeconomic climate, which Puma Energy as We have also welcomed two government during the difficult remains uncertain, by working a global brand. new directors appointed by the recovery from the hurricanes that together we can improve the Sonangol Group to our Board hit the island in 2017. It is a tribute returns on our portfolio and build this year – Baltazar Agostinho to our local teams that we could an even stronger business Gonçalves Miguel and Filomena operate when others couldn’t, and for the future. Maria Gamboa Carvalho dos Santos so were instrumental in restoring e Oliveira. I look forward to their the power supplies that have input into the challenges the enabled as swift a return to more Company faces, as we continue to normal business and domestic build our business in Angola, across life as possible. Africa and around the world. Graham Sharp, Chairman 08 BUSINESS OVERVIEW CHIEF EXECUTIVE REVIEW I am delighted to have been given I am pleased to say that my Our second priority is to set a the chance to lead Puma Energy colleagues across Puma Energy clear strategic direction to realise and am genuinely excited about have responded very positively the full potential of our current the opportunity I see for the to our three priorities and our business, both in the short and company.
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