Annual report – 2004
Contents
Page No.

Board of Directors
1

Management team
2

Chairman’s report
3-4

Corporate Governance Report
5-10

Management discussion and analysis
11-12
Board of Directors
1. Rashed Bin Saif Al Suwaidi
Chairman
2. Munir Abdulnabi Makki
Deputy Chairman
3. Ibrahim Bin Salem Abdulla
Managing Director
4. Noor Bin Mohamed Bin Abdulrahman
Director
5. Siham Qais Al Zawawi
Director
6. Jasser Saleh Salem Al Oulqi
Director
7. Omar Mohamed El Baqir Khalifa
Director
1
Management Team
1. Ibrahim Bin Salem Abdulla
Managing Director
2. Said Salim Marei Al Shanfari
General Manager
3. Balakrishna Madduri
Operations Manager
4. Hany Ahmed Abd Rabouh
Finance Manager
5. Ahmed Bakhit Al Shanfari
Marketing Manager
6. Salim Humaid Al Mahrooqi
IT Manager
7. Nasser Ali Al Khalili
Acting Human Resources and Admin. Manager
8. Hafidh Awad Al Hadeed
South Oman Region Manager
9. Osama Mirghani A. Rahim
Head of Internal Audit
2
Chairman’s report
On behalf of the Board of Directors, I am pleased to present to you the annual report of your
company for the year ended 31 December 2004.
Introduction :Al Maha was converted from limited liability company to joint stock company following the
decision of the Ministry of Oil and Gas and Central Bank of Oman to divest their 65% stake in the
company by offering 60% to the public and 5% to ABS Lubricants.
The Directors were elected in the Constitutive General Meeting which was held on 12 June 2004.
Business environment :The crude oil prices significantly increased in 2004 but with no impact over the purchase prices of
fuel which are fixed by Oman Refinery Company LLC. with the exception of jet fuel purchase
pricing which was amended in August 2004 to be in line with the market prices .
The sales of gas oil and jet fuel saw large increase in 2004 partly due to new business and partly due
to non sustainable market conditions. Stiff competition is currently experienced in locating new
feasible sites of filling stations.
Financial performance :-
2004
RO-million
2003
RO-million
% of
Increase /
( decrease )
Sales
77.5
74.9
3%
Total expenses
7.9
7.8
1%
Net profit after tax
2.6
2.1
23%
Net assets
14.4
15.8
(9%)
Share capital
6.0
8.5
(29%)
0.390
0.247
58%
Earnings per share- RO
The year under review was characterized by continuing challenging conditions.
In spite of the highly competitive business environment, sales have grown by 3% and net profit has
reached RO 2.6 million in 2004 compared with RO 2.1 million in 2003, an increase of
RO 484,795 (23%) mainly due to better gross profit margin and increase of sales.
On 15 November 2003, the former Board of Directors passed a resolution to reduce the share capital
of the company from RO 8.5 million to RO 6 million. The reduction amount of RO 2.5 million was
paid in March 2004 to the Ministry of Oil and Gas, Central Bank of Oman and ABS Lubricants.
Earnings per share have grown by 58%, from Baiza 247 in 2003 to Baiza 390 this year on account of
the increase in profit and reduction of share capital.
3
Dividend :The Board of Directors has recommended a dividend of Baiza 250 per share (25%) against 2004
profit (Baiza 250 per share was paid in 2004 against 2003 profit).
As we look ahead, we intend to build on and strengthen our relationship with our customers, filling
stations dealers and shareholders.
Thanks :On behalf of the Board of Directors, I take this opportunity to express our sincere gratitude to His
Majesty Sultan Qaboos Bin Said for creating a dynamic and progressive economic setting, fostering
growth and economic development. I also wish to extend our thanks to the officials of Capital
Market Authority and Muscat Securities Market for their valuable support and co-operation.
Our thanks go to the executive team and all our staff for their unwavering commitment to deliver
such an outstanding results for the benefit of our shareholders that turns our plans to reality.
Finally, I wish to thank all our shareholders for their trust, and our esteemed customers for their
confidence, trust and support extended to the company.
Rashed Saif Al Suwaidi
Chairman
27 March 2005
4
Report to the Shareholders of Al Maha Petroleum Products Marketing Co. SAOG ("the
Company") of Factual Findings in connection with the Corporate Governance Report of the
Company and application of the Corporate Governance practices in accordance with Capital
Market Authority Code of Corporate Governance
We have performed the procedures prescribed in the Capital Market Authority ("CMA") Circular
No. 16/2003 dated 29 December 2003 with respect to the Corporate Governance Report of the
Company ("the Report") and its application of the Corporate Governance practices in accordance
with the CMA Code of Corporate Governance ("the Code") issued under Circular No. 11/2002 dated
3 June 2002, as amended. The Report is set out on pages 6 to 10.
Our engagement was undertaken in accordance with the International Standards on Auditing
applicable to agreed-upon procedures engagements. The procedures were performed solely to assist
you in evaluating the Report.
We found the Report reflects, in all material respects, the Company's application of the provisions of
the Code and is free from any material misrepresentation.
We draw your attention to page 10 of the Report which sets out specific areas of non-compliance
with the provisions of the Code of Corporate Governance during the year ended 31 December 2004.
The Company converted from a limited liability company to a quoted joint stock company on 4 July
2004 and the Board subsequently approved a plan to develop certain policies and procedures to fully
comply with the requirements of the code.
Because the above procedures do not constitute either an audit or a review made in accordance with
International Standards on Auditing, we do not express any assurance on the Company's Corporate
Governance Report. Had we performed additional procedures or had we performed an audit or
review of this Report in accordance with International Standards on Auditing other matters might
have come to our attention that would have been reported to you.
This report is solely for the purpose set forth in the second paragraph above, and for inclusion, with
the Report, in the Company's annual report, and is not to be used for any other purpose. This report
relates only to the Report included in the Company's annual report for the year ended 31 December
2004 and does not extend to the financial statements or any other reports of Al Maha Petroleum
Products Marketing Co. SAOG, taken as a whole.
27 March 2005
KPMG
5
Corporate Governance Report
The Code of Corporate Governance deals with the way companies are led and managed, the role of
the board of directors and a frame work of internal controls.
The Board supports the highest standards of Corporate Governance. The Board confirms that the
Company applies the principles set out in the Capital Market Authority’s (CMA) Code of Corporate
Governance (Code) for Muscat Securities Market (MSM) listed companies published on 3 June 2002
(Circular No. 11/2002) as amended on 11 January 2003 (Circular No. 1/2003).
Board of Directors :The Board’s responsibilities are: Review the strategic plans and operational performance
 Review the effectiveness of internal controls
 Approval of business plans and budgets
 Approval of interim and annual financial statements
 Approval of policies and procedures
The Directors were elected in the Constitutive General Meeting held on 12 June 2004. The Board
comprises six non-executive and independent directors and one executive director.
Effective 12 July 2004, Mr. Awad Abdul Mutalib resigned from the Board and Mr. Omar Mohamed
El Baqir Khalifa was appointed to the Board.
The Board held four meetings during the period from 13 June 2004 through 31 December 2004. The
dates of the Board’s meetings were 13 June 2004, 19 July 2004, 20 October 2004 and
29 December 2004 which are in accordance with the provisions of the Code of Corporate
Governance.
The Directors’ attendance record was as follows:-
Director's name
Board meetings
attended
Rashed Bin Saif Al Suwaidi
3
Munir Abdulnabi Makki
4
Ibrahim Bin Salem Abdulla
4
Noor Bin Mohamed Bin Abdulrahman
4
Siham Qais Al Zawawi
4
Jasser Saleh Salem Al Oulqi
4
Omar Mohamed El Baqir Khalifa
3
Directorships in other SAOG companies in Sultanate of Oman are listed below:-
6
Name of
SAOG company
Position
--
--
1- Financial Corporation Co. SAOG (FINCORP)
2- Alliance Housing Bank SAOG
Director
Director
Ibrahim Bin Salem Abdulla
--
--
Noor Bin Mohamed Bin Abdulrahman
--
--
Siham Qais Al Zawawi
--
--
Jasser Saleh Salem Al Oulqi
--
--
Omar Mohamed El Baqir Khalifa
--
--
Director's name
Rashed Bin Saif Al Suwaidi
Munir Abdulnabi Makki
The Board has taken a decision to carry out a Business Process Re-engineering study and to review
the existing manuals in order to ensure that the requirements of the Code of Corporate Governance
are met. The study and review of manuals will be outsourced and are scheduled for completion by
the end of this year.
Committees of the Board :The Board has formed Audit and Executive Committees in its first meeting held on 13 June 2004.
Audit Committee :The Audit Committee comprises a Chairman and two Directors, all of whom are non-executive and
independent. The Committee members are knowledgeable in finance, industry and laws and
regulations governing SAOG companies.
The Committee held four meetings on 11 July 2004, 21 September 2004, 18 December 2004 and 28
December 2004 since its formation until 31 December 2004. The attendance record of the
Committee meetings was as follows:-
Director's name
Meetings
attended
Noor Bin Mohamed Bin Abdulrahman ( Chairman )
4
Jasser Saleh Salem Al Oulqi
4
Omar Mohamed El Baqir Khalifa
3
The Audit Committee approved the Internal Audit Charter and issued the Audit Committee Charter
which was later approved by the Board of Directors.
The Audit Committee Charter defines the duties and responsibilities of the Committee, which are
concisely:7




Ensuring compliance with CMA regulations and Code of Corporate Governance.
Review quarterly and annual financial statements.
Considering external audit fees and terms of engagement.
Reviewing and approving the annual internal and external audit plans and ensuring that
auditors have full and unrestricted access to all relevant documents and staff.
 Oversight of all audit activities and internal control evaluation.
 Reviewing proposed specific transactions with related parties and making recommendations
to the Board.
 Conduct any special investigations and report to the Board.
The Company has an internal audit function that reports to the Audit Committee.
Executive Committee :The Executive Committee is delegated the powers and authority to facilitate the smooth running of
the operations of the Company and to provide the Board with a mechanism for considering in depth ,
any issue that the Board consider that it requires detailed attention . The Committee main areas of
competence are as follows: Strategic issues
 Investment decisions
 Treasury and liquidity management
 Business plans and budgets
 Major changes in policies and procedures
 Proposals for new business areas
 Progress reviews
 Staff matters
 Other matters referred by the Board to the Committee
The Executive Committee comprises two non-executive and independent directors and one
executive director. The Committee met two times since 13 June 2004. The attendance record was as
follows:-
Director's name
Meetings
attended
Munir Abdulnabi Makki ( Chairman )
2
Ibrahim Bin Salem Abdulla
2
Siham Qais Al Zawawi
2
Internal control review :The Board has overall responsibility for the Company’s internal controls and risk management and
for reviewing their effectiveness. The system of internal control is designed to manage rather than
eliminate risk to which the Company is exposed and provides reasonable rather than absolute
assurance against material misstatement or loss. The Board attaches great importance to maintaining
a strong control environment. The Board has reviewed the internal controls and is satisfied that
appropriate controls are in place to implement the Code’s requirements.
8
Remuneration of Directors and top five Executives :Sitting fees are paid to the Board and committees members to take account of the additional work
involved. The details of fees are shown below: Board sitting fee is RO 300 per meeting.
 Audit Committee sitting fee is RO 200 per meeting.
 Executive Committee sitting fee is RO 200 per meeting.
The total sitting fees of the Board of Directors meetings was RO 8,100. The total sitting fees of the
Audit and Executive Committees meetings was RO 2,200 and RO 1,000 respectively.
The proposed directors’ remuneration for 2004 is RO 70,000 subject to the approval of the Annual
General Meeting.
The total cost of the top five Executives was approximately RO 366,994 in 2004.
Dividend policy :The Board of Directors will maintain a sustainable dividend policy which will address the financial
strength of the company, support its long term strategies and at the same time, will pay a reasonable
cash dividends to the shareholders.
Market price data :The shares of the Company were listed in the regular market with Muscat Securities Market on 15
June 2004. The monthly market prices are shown in the following table:High
RO/share
Low
RO/share
June
4.000
3.600
July
4.200
3.850
August
4.160
4.010
September
4.120
3.980
October
4.300
4.020
November
4.200
4.090
December
4.260
4.050
Month
Performance in comparison to MSM service sector index :-
1,580
4.30
1,560
4.20
1,540
4.10
1,520
4.00
1,500
3.90
1,480
1,460
3.80
1,440
3.70
1,420
3.60
Jun-04
Jul-04
Aug-04
Service sector index
Sep-04
Oct-04
Nov-04
Dec-04
Al Maha closing share price
9
Communication with shareholders :The annual and quarterly financial statements are published in two newspapers (Arabic and English).
The website of the Company is under development and will be ready in the very near future. All the
information relating to the Company and news together with the financial results will be available in
the website.
Distribution of shareholding :-
Category of
Shares
Number of
shareholders
Number of
shares
% of
shareholding
Up to 500
4,025
955,630
15.93%
501-1,000
332
212,108
3.53%
1,001-5,000
143
382,651
6.38%
5,001-10,000
19
124,892
2.08%
10,001-50,000
35
750,084
12.50%
50,001-100,000
10
722,738
12.05%
Above 100,000
5
2,851,897
47.53%
4,569
6,000,000
100.00%
Total
Statutory auditors :KPMG is an international accounting firm operating in more than 150 countries from over 800
offices and having more than 100,000 staff. KPMG in Sultanate of Oman has over 70 employees
including 3 partners and 12 managers.
Details of non compliance with the Corporate Governance Code:The Company was converted from a limited liability company to a quoted joint stock company on
4 July 2004.
The Board has taken a decision to carry out a full Business Process Re-engineering study and to
review the existing manuals in order to ensure that the requirements of the Code of Corporate
Governance are fully met.
The study and review of manuals will be outsourced and are scheduled for completion before the
end of 2005.
The Company has not yet fully complied with the provisions of the Code during the year ended 31
December 2004 as the Company is still in the process of developing the following:
 a formal disclosure policy;
 a formal procedure approved by the Board of Directors for related party transactions, as
required by Article 19 of the Code;
 a formal policy for determining the remuneration to directors and key executives; and
 a formal policy on defining roles and responsibilities of the executive management and sub
committees of the board, as required by Article 14 of the Code.
10
Management discussion and analysis
Retail business :Retail sales have continued to grow rapidly in 2004 with 8 filling stations commissioned in 2004
taking the total number of filling stations to 110 by end of 2004. Retail sales have seen an increase
of 23% in 2004 when compared with 2003 and are expected to grow further by 13% in 2005.
Al Maha fuel cards have been a tremendous success and have contributed to the increase in sales.
Souq convenience stores are continuing to attract customers and positively affect retail sales.
Al Maha is endeavoring to introduce new services in filling stations such as car wash in order to
target customers’ satisfaction and improve sales in filling stations.
The filling stations four court management system which was developed internally for both wet and
dry stocks (convenience stores), is currently phased out to filling stations.
Commercial business :Al Maha was able to achieve a growth of 7% in commercial sales in 2004 over 2003 partly due to
new business and partly due to non sustainable market conditions .We are planning to maintain our
market share in 2005 despite of the competition from other Marketers and the non sustainable
market conditions in 2004.
Al Maha was awarded the prestigious PDO contract to manage 7 PDO locations for a period of 5
years commenced in May 2004. We were able to retain this business (since May 2000) mainly due
to proven record of safety and competitive prices.
Aviation business :There has been a substantial increase of more than 60% in the commercial aviation sales in 2004
over 2003 which was attributed to new business and non sustainable market conditions. Our overall
market share in Seeb International Airport has risen to 35%. This has been achieved in a short span
of 4 years as Al Maha started the aviation operations in September 2000.
The aviation commercial sales in 2005 are expected to remain at the same level of 2004 despite of
the non sustainable market conditions in 2004.
Health, Safety and Environment (HSE) :It is our policy to conduct all our activities in such a way to take foremost account of health and
safety of our employees and third parties and to give proper regard to conservation of the
environment. We do not only comply with the requirements of legislation but we also promote the
protection of Health, Safety and Environment of all who may be affected directly or indirectly by
our activities.
Ever since Al Maha became a separate entity in year 2000, employees have achieved “Lost Time
Injury Free and Fatality Free Years“ till date.
We have a Health Safety Management System Manual in place which was recently revised to suite
the latest operating conditions.
The following manuals have been completed: Safety at Berths and Jetties Handling Bulk Products
 Guidelines for Entry into Storage Tanks
 Gas Freeing and Cleaning of Storage tanks
 Transport Safety Management System
11
We are in the process of developing other manuals to help employees to be fully aware of the
guidelines and procedures of the various issues of the HSE.
We have drawn HSE action plans at various levels and the implementation of these plans are being
monitored by the respective HSE committees and training programs are prepared for all our
employees at all locations.
Employees :The Company remains committed to attracting, retaining and developing the highest caliber of
employees, to ensure a culture of high performance. The Company has an ongoing focus to provide
high quality training for employees to ensure they have up to date knowledge and strong
management and leadership competencies, as well as to provide training for continual career
development.
With regard to one of our main objectives, Omanisation has reached 83% at the end of 2004.
Al Maha Petroleum Products
Marketing Company SAOG
Financial statements
31 December 2004
12
Registered office:
Principal place of business:
P O Box 57
Mina Al Fahal, PC 116
Sultanate of Oman
Muscat Overseas Building
Ghala
Sultanate of Oman
13
Al Maha Petroleum Products Marketing Company SAOG
Financial statements
31 December 2004
Contents
Page
Report of the auditors
1
Income statement
2
Balance sheet
3
Statement of changes in equity
4
Cash flow statement
5
Notes
6-17
14
REPORT OF THE INDEPENDENT AUDITOR TO THE SHAREHOLDERS OF
AL MAHA PETROLEUM PRODUCTS MARKETING COMPANY SAOG
We have audited the balance sheet of Al Maha Petroleum Products Marketing Company SAOG (“the Company”) as
at 31 December 2004 and the related statements of income, changes in equity and cashflows for the year then ended,
as set out on pages 2 to 17.
Respective responsibilities of the Board of Directors and the Independent Auditor
These financial statements are the responsibility of the Company’s Board of Directors. Our responsibility is to
express an opinion on these financial statements based on our audit.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing as promulgated by the International
Federation of Accountants. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the Board of Directors, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Al Maha
Petroleum Products Marketing Company SAOG as at 31 December 2004, and the results of its operations and its
cash flows for the year then ended in accordance with International Financial Reporting Standards and the disclosure
requirements of the Capital Market Authority and comply, in all material respects, with the Commercial Companies
Law of 1974, as amended.
27 March 2005
KPMG
15
Page 2
Al Maha Petroleum Products Marketing Company SAOG
Income statement
for the year ended 31 December
2004
RO
Note
Revenue
Cost of sales: cost of fuel and transport
2003
RO
23
23
77,496,485
(67,300,095)
-----------------------------10,196,390
74,939,177
(66,353,209)
---------------------------8,585,968
4
5&23
(508,929)
(6,554,810)
(486,736)
(6,618,484)
10
8
(801,778)
572,617
----------------------2,903,490
(691,323)
1,699,483
-----------------------2,488,908
7,14&19
2
(50,552)
76,253
----------------------2,929,191
(78,730)
(27,407)
-----------------------2,382,771
15
(347,903)
----------------------2,581,288
==========
(286,278)
-----------------------2,096,493
==========
Earnings per share (RO)
27
Proposed dividend per share (RO)
22
0.390
=========
0.250
=========
0.247
=========
0.250
=========
Gross profit
Selling & marketing expenses
Administrative & general expenses
Amortisation of contribution towards the cost
of filling station assets
Other operating income
Profit from operations
Net financing expenses
Share of profit (loss) of operational venture
Profit before income tax
Income tax
Net profit for the year
The notes on pages 6 to 17 form an integral part of these financial statements.
The report of the Auditors is set forth on page 1.
16
Page 3
Al Maha Petroleum Products Marketing Company SAOG
Balance sheet
as at 31 December
2004
RO
2003
RO
963,694
7,761,192
---------------------------8,724,886
---------------------------998,562
11,320,231
4,791,829
---------------------------17,110,622
---------------------------25,835,508
============
1,421,535
6,404,366
-------------------------------7,825,901
-------------------------------2,592,516
9,967,243
5,081,570
-------------------------------17,641,329
-------------------------------25,467,230
=============
17
20
21
6,000,000
1,153,145
805,514
6,457,785
---------------------------14,416,444
----------------------------
8,500,000
895,016
805,514
5,634,626
-------------------------------15,835,156
--------------------------------
14 &19
2
1,999,840
17,584
---------------------------2,017,424
----------------------------
2,632,034
93,837
-------------------------------2,725,871
--------------------------------
14 &19
616,800
450,000
15
16
347,903
8,436,937
---------------------------9,401,640
---------------------------11,419,064
---------------------------25,835,508
============
286,278
6,169,925
-------------------------------6,906,203
-------------------------------9,632,074
-------------------------------25,467,230
=============
2.403
============
The notes on pages 6 to 17 form an integral part of these financial statements.
1.863
=============
Note
Assets:
Property, plant and equipment
Contribution towards cost of filling station assets
9
10
Total non-current assets
Inventories
Receivables and prepayments
Cash at bank and in hand
11
12
13
Total current assets
Total assets
Equity:
Share capital
Legal reserve
Special reserve
Retained earnings
Total equity
Liabilities:
Interest-bearing loan
Due to operational venture
Total non-current liabilities
Interest-bearing loan
Income tax payable
Payables and accruals
Total current liabilities
Total liabilities
Total equity and liabilities
Net assets per share (RO)
26
These financial statements were authorised for issue by the Board of Directors on 27.03.2005 and were signed on their
behalf by:
_________________________
Chairman
____________________________
Director
The report of the Auditors is set forth on page 1.
17
Page 4
Al Maha Petroleum Products Marketing Company SAOG
Statement of changes in equity
for the year ended 31 December
Share
capital
RO
Legal
reserve
RO
Special
reserve
RO
Retained
earnings
RO
Total
RO
1 January 2003
Net profit for the year
Transfer to legal reserve
Transfer to special reserve
Dividend paid
8,500,000
----------------------
685,367
616,830
209,649
188,684
----------------------- -----------------------
4,786,466 14,588,663
2,096,493 2,096,493
(209,649)
(188,684)
(850,000) (850,000)
----------------------- -------------------------
At 31 December 2003
Net profit for the year
Transfer to legal reserve
Share capital reduction
Dividend paid
8,500,000
(2,500,000)
---------------------6,000,000
===========
895,016
805,514
258,129
----------------------- ----------------------1,153,145
805,514
========== ==========
5,634,626 15,835,156
2,581,288 2,581,288
(258,129)
- (2,500,000)
(1,500,000) (1,500,000)
----------------------- ------------------------6,457,785 14,416,444
=========== ===========
31 December 2004
The notes on pages 6 to 17 form an integral part of these financial statements.
The report of the Auditors is set forth on page 1.
18
Page 5
Al Maha Petroleum Products Marketing Company SAOG
Cash flow statement
for the year ended 31 December 2004
Operating activities
Profit before income tax
Items not affecting the cash flow:
Depreciation
Amortisation
Profit on disposal of property, plant and equipment
Adjustment to net book value of contribution towards filling station assets
Share of (profit) losses of operational venture
Operating profit before changes in working capital and provisions
Decrease in inventories
(Increase) decrease in receivables and prepayments
Increase (decrease) in payables, accruals and provisions
Income taxes paid
Cash flows from operating activities
Investing activities
Acquisitions of property, plant and equipment
Proceeds from disposals of property, plant and equipment
Cash flows from investing activities
Financing activities
Long term (paid) loan obtained
Share capital reduction
Dividends paid
Cash flows from financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Cash and cash equivalents at the end of the year comprise the following:
Cash at bank and in hand (note 13)
2004
RO
2003
RO
2,929,191
2,382,771
315,555
801,778
(21,979)
(76,253)
----------------------3,948,292
1,593,954
(1,352,988)
2,249,872
----------------------6,439,130
(268,842)
----------------------6,170,288
-----------------------
350,953
691,323
(24,572)
44,671
27,407
-----------------------------3,472,553
1,629,241
6,715,626
(2,852,522)
-----------------------------8,964,898
(380,000)
---------------------------8,584,898
----------------------------
(2,164,281)
169,942
------------------------(1,994,339)
-------------------------
(2,249,426)
24,572
---------------------------(2,224,854)
----------------------------
(465,690)
(2,500,000)
(1,500,000)
------------------------(4,465,690)
------------------------(289,741)
5,081,570
------------------------4,791,829
===========
1,727,314
(850,000)
---------------------------877,314
---------------------------7,237,358
(2,155,788)
---------------------------5,081,570
===========
4,791,829
===========
5,081,570
===========
The notes on pages 6 to 17 form an integral part of these financial statements.
The report of the Auditors is set forth on page 1.
19
Page 6
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
1
Legal status and principal activities
Al Maha Petroleum Products Marketing Company S.A.O.G (“the Company”) is registered under the
Commercial laws of the Sultanate of Oman as a joint stock company and is primarily engaged in the
marketing and distribution of petroleum products. The Company was converted on 4 July 2004 from a
limited liability company to a quoted joint stock company following the decision of the Ministry of Oil &
Gas and the Central Bank of Oman to divest their 65% stake in the Company by offering 60% to the public &
5% to ABS Lubricants.
2
Operational venture
The Company has entered into an operational venture (“the Souk”) with Talal Zawawi Enterprises LLC
(“TZE”) through an agreement dated 26 January 2002 (“the Agreement”). Under the Agreement, TZE are
responsible for operating convenience stores at all the Company’s filling stations and other locations within
the Sultanate of Oman. The Agreement requires the Company to provide property, plant and equipment to
the Souk, and TZE are responsible for providing working capital, certain property, plant & equipment and
operating the Souk. Under the Agreement, as amended, the Company is entitled to 50% of the profit of the
Souk, excluding depreciation & financing costs.
3
Significant accounting policies
a)
Statement of compliance
These financial statements have been prepared in accordance with the International Financial Reporting
Standards (“IFRS”), the minimum disclosure requirements of the Capital Market Authority and the
requirements of the Commercial Companies Law of 1974, as amended.
b)
Basis of preparation
The financial statements are presented in Rial Omani. These financial statements have been prepared on the
historical cost basis. The accounting policies have been applied consistently and are consistent with those
used in the previous year.
The preparation of financial statements in conformity with IFRSs requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and liabilities that are not really apparent
from other sources. Actual results may differ from these estimates.
The estimates underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
20
Page 7
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
3
Significant accounting policies (continued)
c)
Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses
[refer accounting policy (h)]. Expenditure incurred to replace a component of an item of property, plant and
equipment that is accounted for separately, including major inspection and overhaul expenditure, is
capitalised. Other subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the item of property, plant and equipment. All other expenditure is recognised in the income
statement as an expense as incurred.
Capital work-in-progress is not depreciated. Depreciation is charged to the income statement on a straightline basis over the estimated useful lives of items of property, plant and equipment as noted below:
Years
Buildings and roads
Plant and equipment
Motor vehicles
Furniture and fixtures
d)
7-20
7-12
3
3
Contribution towards cost of filling station assets
The filling station sites are leased for periods not exceeding 20 years. The cost of buildings, roads, equipment
and furniture at the filling station is shared between the Company and the lessor. Contribution towards cost of
filling station assets represents the cost borne by the Company in respect of the filling station assets. These
costs are amortised on a straight-line basis, on the commencement of operations at the filling stations, over
their estimated useful lives (not exceeding the period of the lease) as follows:
Years
Buildings and roads
Plant and equipment
Furniture and fixtures
e)
7-20
7-12
3
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated cost of completion and selling expenses. Cost
represents purchase price plus direct expenses incurred in bringing the inventory to its present condition and
location. Cost is determined on the first-in-first-out basis.
f)
Trade and other receivables
Trade and other receivables are stated at their cost less impairment losses [refer accounting policy (h)].
g)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and balances with banks. Bank borrowings that are
repayable on demand and form an integral part of the Company’s cash management are included as a
component of cash and cash equivalents for the purpose of the statement of cash flows.
21
Page 8
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
3
Significant accounting policies (continued)
h)
Impairment
The carrying amounts of the Company’s assets, other than inventories [refer accounting policy (e)] and
deferred tax assets [refer accounting policy (p)], are reviewed at each balance sheet date to determine whether
there is any indication of impairment. If any such indication exists, the assets’ recoverable amount is
estimated. An impairment loss is recognised in the income statement whenever the carrying amount of an
asset exceeds its recoverable amount.
The recoverable amount of the Company’s receivables is calculated as the present value of expected future
cash flows discounted at the original effective interest rate inherent in the asset. Receivables with short
duration are not discounted. The recoverable amount of other assets is the greater of their net selling price
and value in use. In assessing the value in use the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the
recoverable amount is determined for the cash-generating unit to which the asset belongs.
An impairment loss in respect of receivables is reversed if the subsequent increase in recoverable amount can
be related objectively to an event occurring after the impairment loss was recognised. In respect of other
assets, an impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
i)
Provisions
A provision is recognised in the balance sheet when the Company has a legal or constructive obligation as a
result of a past event, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Measurement of liabilities is based on current legal requirements and existing technology.
Provisions are discounted only where the effect of the time value of money is material.
j)
Dividends
Dividends are recognised as a liability in the period in which they are declared.
k)
Trade and other payables
Trade and other payables are stated at their cost.
l)
Revenue
Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards
of ownership have been transferred to the buyer. No revenue is recognised if there are significant
uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.
22
Page 9
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
3
Significant accounting policies (continued)
m)
Employee benefits
Omani Staff were paid their end of service benefit entitlements accrued up to 31 December 2003 through
amounts recovered from Oman Refinery Company LLC. With effect from 1 January 2004, contributions to
the Oman Government defined contribution retirement plan were recognised as expense in the income
statement as incurred in accordance with the rules of the Oman Social Insurance Scheme.
Additionally, Omani staff are entitled to additional end of service benefits calculated at 18% of basic salary
entitlement from 1 January 2004 to the date of end of service.
Provisions for non-Omani employee terminal benefits, which is an unfunded defined benefit retirement plan,
is made in accordance with the Company’s policy for expatriate end of service benefits (“the Policy”) and is
based on the liability that would arise if the employment of all such employees was terminated at the balance
sheet date. The Policy provides for non-Omani terminal benefits to be calculated based on final salary and
length of service.
n)
Foreign currency transactions
Transactions denominated in foreign currencies are translated into Rial Omani at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are translated into Rial Omani at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on transactions are recognised in the income statement.
o)
Net financing expense
Net financing expense comprises interest payable on borrowings, foreign exchange gains and losses and
interest receivable on funds invested. Interest income is recognised in the income statement as it accrues
taking into account the effective yield on the asset. Interest expense is recognised in the income statement as
it accrues using the effective interest rate method.
p)
Income taxes
Income tax on the profit for the year comprises current taxes and deferred tax. Income tax is recognised in the
income statement except to the extent that it relates to items recognised directly to equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using the tax rates enacted or
substantially enacted at the balance sheet date, and any adjustment to income taxes payable in respect of
previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at
the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future
taxable profits will be available against which the unused tax losses and credits can be utilised. Deferred tax
assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
23
Page 10
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
3
Significant accounting policies (continued)
q)
Interest bearing loans
Interest bearing loans are recognised initially at cost, less attributable transactions costs. Subsequent to initial
recognition, interest bearing loans are stated at amortised cost with any difference between cost and
redemption value being recognised in the income statement over the period of the loans on an effective
interest basis.
4
Selling and marketing expenses
Operating fees (see below)
Advertisement
Sales promotion
Others
2004
RO
2003
RO
292,385
127,668
69,613
19,263
-----------------508,929
========
305,747
118,072
31,243
31,674
--------------------486,736
========
Operating fees represents fees paid to two parties for operating filling stations on behalf of the Company
located on PDO concession area.
5
Administrative and general expenses
Employee costs (note 6)
Transportation
Company operated filling station expenses
Shipping costs (note 8)
Technical fees
Maintenance expenses
Depreciation (note 9)
Licence fee
Rent (note 8)
Directors remuneration and sitting fees (note 23)
Miscellaneous
6
2004
RO
2003
RO
1,599,212
1,602,003
1,482,635
490,555
587,943
315,555
154,833
64,578
80,500
176,996
---------------------6,554,810
==========
1,398,986
1,514,249
987,745
750,643
442,269
451,653
350,953
150,000
350,035
42,400
179,551
---------------------6,618,484
==========
2004
RO
2003
RO
Employee costs
Employee costs included in administrative and general
expenses comprise:
Wages, salaries and other benefits
1,461,569
1,267,905
Contributions to defined contribution retirement plan (see below) 125,555
117,288
Increase in liability for unfunded defined benefit retirement plan
12,088
13,793
---------------------------------------------1,599,212
1,398,986
==========
===========
The average number of employees during the year ended 31 December 2004 was 99 (2003: 92).
Until 31 December 2003, the Company’s Omani staff were members of the Oman Refinery Company LLC
Pension Scheme (“the Scheme”), with the Company’s only liability being to pay contributions to the Scheme
as notified by the Scheme. The Scheme has paid to the Company the benefits under the Scheme rules for the
24
Company’s Omani staff accruing upto 31 December 2003 in the amount of RO 316,000 and, in turn, the
Company has paid these benefits to the respective employees.
25
Page 11
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
7
Net financing expenses
Interest expense (notes 14 and 19)
Bank charges
Net foreign exchange gain
Interest income (note 13)
8
2004
RO
2003
RO
75,035
86,066
2,780
6,967
(199)
-
-------------------77,616
-------------------------93,033
(27,064)
--------------------50,552
=========
(14,303)
------------------------78,730
==========
Other operating income
2004
RO
2003
RO
Depot management income and
costs reimbursement
Aviation manpower charges
Profit on sale of fixed assets
Throughput charges
Shipping income
Miscellaneous income
258,836
129,533
190,673
21,979
24,572
247,957
933,181
162,269
303,100
---------------------------------------------572,617
1,699,483
==========
===========
Until 31 December 2003, the Company rented the Raysut stock depot (“the depot”), from Ministry of Oil &
Gas (“MOG”) for RO 300,000 per annum and operated it in its own right. Under a Memorandum of
Understanding (“the MOU”) dated 31 December 2003 between MOG, Oman Refinery Company LLC
(“ORC”) and the Company, the depot and the shipping operation have been taken over by ORC and the depot
is managed by the Company on behalf of ORC with effect from 1 January 2004. Under the MOU, the
Company is reimbursed the costs incurred in managing the Depot and an annual fee.
9
Property, plant and equipment
Buildings &
roads
RO
Cost
1 January 2004
Additions
Disposals
Transfers
31 December 2004
Depreciation
1 January 2004
Charge for the year
Disposals
Transfers
31 December 2004
Plant &
equipment
RO
Motor
vehicles
RO
Furniture &
fixtures
RO
Total
RO
467,421
(251,300)
--------------------216,121
---------------------
2,646,699
8,930
(33,961)
(4,075)
--------------------2,617,593
---------------------
253,786
(27,350)
--------------------226,436
---------------------
74,320
(3,000)
-------------------71,320
--------------------
3,442,226
8,930
(315,611)
(4,075)
--------------------3,131,470
---------------------
252,219
36,228
(115,179)
--------------------173,268
1,582,562
252,697
(22,119)
(822)
--------------------1,812,318
112,013
26,228
(27,350)
--------------------110,891
73,897
402
(3,000)
-------------------71,299
2,020,691
315,555
(167,648)
(822)
--------------------2,167,776
26
Carrying amount
31 December 2004
31 December 2003
---------------------
---------------------
---------------------
42,853
========
215,202
========
805,275
==========
1,064,137
==========
115,545
========
141,773
========
--------------------
---------------------
21
963,694
======== ===========
423 1,421,535
======== ===========
27
Page 12
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
9
Property, plant and equipment (continued)
Assets relating to the depot at Mina Al Fahal, included in property, plant and equipment with a carrying value
of RO 172,591 (2003: RO 258,433), are held in partnership with Oman Oil Marketing Company SAOG. The
Company’s buildings at the depot at Mina Al Fahal are constructed on land leased from the Ministry of Oil
and Gas until 1 January 2010 and cannot be sold without the mutual consent of the Company and Oman Oil
Marketing Company SAOG. The depot is operated by Oman Oil Marketing Company SAOG, in accordance
with an agreement dated 6 December 1995 (“the Agreement”). Under the Agreement, the Company pays
management fees to Oman Oil Marketing Company SAOG and 50% of the expenditure incurred in managing
the depot. The depot has non-cancellable operating lease rental commitments until 1 January 2010 in respect
of the land of RO 22,045 per annum.
10
Contribution towards the cost of filling station assets
Cost
1 January 2004
Additions
Transfers
31 December 2004
Amortization
1 January 2004
Charge for the year
Transfers
31 December 2004
Carrying amount
31 December 2004
31 December 2003
11
Inventories
Finished goods:
- Petroleum products
- Lubricants
Other material
Buildings &
roads
RO
Plant &
equipment
RO
Furniture &
fixtures
RO
Capital
work-in
progress
RO
Total
RO
3,588,879
-
4,350,158
-
922,515
-
466,793
2,155,351
9,328,345
2,155,351
697,668
302,164
66,626
(1,062,383)
4,075
--------------------4,286,547
--------------------4,652,322
-------------------989,141
-------------------- -----------------------1,559,761 11,487,771
---------------------
---------------------
--------------------
-------------------- -----------------------
474,171
199,582
--------------------673,753
1,940,810
487,189
822
--------------------2,428,821
508,998
115,007
-------------------624,005
- 2,923,979
801,778
822
-------------------- ----------------------- 3,726,579
---------------------
---------------------
--------------------
-------------------- -----------------------
3,612,794
==========
3,114,708
==========
2,223,501
=========
2,409,348
=========
365,136
=========
413,517
=========
1,559,761 7,761,192
========= ==========
466,793 6,404,366
========= ==========
2004
RO
2003
RO
983,092
15,470
---------------------998,562
---------------------998,562
==========
2,485,433
9,281
-----------------------2,494,714
97,802
----------------------2,592,516
==========
28
Page 13
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
12
Receivables and prepayments
Trade receivables
Less: impairment losses
Trade receivables, net of impairment losses
Other receivables and prepayments
Receivables from related parties (notes 17 and 22)
2004
RO
11,160,376
(750,000)
-----------------------10,410,376
909,855
-----------------------11,320,231
===========
2003
RO
6,983,288
(750,000)
--------------------------6,233,288
652,565
3,081,390
-----------------------------9,967,243
============
Receivables from parties classified at 31 December 2003 as related parties are included within trade
receivables at 31 December 2004 as, with effect from 7 April 2004, such parties are no longer related parties.
13
Cash at bank and in hand
Bank balances
Cash balances
2004
RO
2003
RO
4,775,912
15,917
-----------------------4,791,829
===========
5,069,777
11,793
--------------------------5,081,570
===========
Bank balances including deposit accounts are held with local commercial banks and earn interest at
commercial rates.
14
Interest Bearing Loan
Long term Loan – Current portion (see Note 18)
2004
RO
2003
RO
616,800
===========
450,000
===========
The Company has credit facilities with local and foreign commercial banks. The facilities are secured by a
charge on the relevant station assets and bear interest at effective rates ranging between 2% and 3.6% per
annum.
15
Income tax
a)
Recognised in the income statement
2004
RO
2003
RO
Components of tax:
Current tax expense
Under provided in prior years
311,547
286,278
36,356
===========
===========
The Company is liable to income tax at the rate of 12% on taxable income in excess of RO 30,000.
29
Page 14
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
15
Income tax (continued)
b)
Reconciliation of income tax expense
The following is a reconciliation of income taxes calculated on accounting profits at the applicable tax rate
with the income tax expense for the year:
2004
2003
RO
RO
Profit before income tax
Income tax at the above rate
Non-deductible expenses
Under provided in prior years
Temporary differences not recognised as
deferred tax liability
c)
2,929,191
-----------------------347,903
(9,150)
36,356
2,382,771
---------------------282,333
3,289
22,668
(27,206)
-------------------347,903
=========
(22,012)
-----------------------286,278
==========
Current status of tax assessments
The Company's income tax assessments for each of the years 2000 to 2004 have not yet been finalised by the
Secretariat General of Taxation at the Ministry of Finance. The Board of Directors consider that the amount
of additional taxes, if any, that may become payable on finalisation of the assessments for these open tax
years would not be significant to the Company’s financial position at 31 December 2004.
d)
Deferred taxation
No deferred tax has been recognised as the net effect of temporary differences as at 31 December 2004 is not
considered by the Board of Directors to be significant.
16
Payables and accruals
2004
RO
2003
RO
ORC payables (note 23)
Other trade payables
Amount due to related parties (note 23)
Accrued expenses
Employee terminal benefits
5,394,541
4,617,982
1,212,736
766,397
4,427
68,743
1,609,136
627,939
216,097
88,864
-------------------------------------------------8,436,937
6,169,925
===========
===========
Amounts due to parties classified as related parties at 31 December 2003 are included within trade payables
at 31 December 2004 as, with effect from 7 April 2004, such parties are no longer related parties.
17
Share capital
The authorised share capital comprises 8.5 million shares of RO 1 each. The issued & paid up share capital
comprises 6 million shares of RO 1 each (8.5 million shares of RO 1 each at 31 December 2003).
30
Page 15
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
17
Share capital (continued)
On 15 November 2003, the Shareholder’s passed a resolution to reduce the share capital of the Company
from RO 8.5 million to RO 6 million. Accordingly, RO 2.5 million share capital was repaid to the Ministry
of Oil & Gas, Central Bank of Oman and ABS Lubricants on 27 March 2004 in proportion to their shares
held at that date.
18
Significant shareholders
At 31 December, shareholders owning more than 10% of the Company’s share capital are as follows:
2004
2003
Number
Number
of shares
%
of shares
%
ABS Lubricants
19
2,400,000
==========
40
==
2,975,000
==========
35
==
Interest bearing loan
During the year ended 31 December 2002, the Company obtained a loan facility of US$ 8 million from
National Bank of Abu Dhabi. The loan bears interest at a rate of 3 months LIBOR plus 1% per annum. This
loan is repayable in 20 equal quarterly instalments of US$ 400,000 each, commencing six months from the
date of the last drawdown. This loan is for the purpose of financing the construction of filling stations and
other related capital expenditure.
Under the terms of the loan agreement, payment of dividends proposed by the Company is subordinate to
payment of due bank interest or due bank loan instalments, if any, for the period in respect of which the
dividends are proposed.
20
Legal reserve
Article 106 of the Commercial Companies Law of 1974 requires that 10% of a company’s net profit be
transferred to a non-distributable legal reserve until the amount of legal reserve becomes equal to at least onethird of the company’s issued share capital.
21
Special reserve
Until December 2003, ten percent of the net profit after tax and transfer to legal reserve was transferred to a
discretionary special reserve. During the year 2004, the Board of Directors have resolved to make no
additional transfer to this reserve.
22
Dividend
Proposed dividend
The Board of Directors have proposed a dividend of RO 1,500,000 for the year ended
31 December 2004 (2003: RO 1,500,000).
31
Page 16
Al Maha Petroleum Products Marketing Company SAOG
Notes
(forming part of the financial statements)
23
Related party transactions
The Company has entered into transactions with Members of the Board of Directors and with entities over
which certain Members and/or Directors are able to exercise significant influence. Transactions with related
parties are considered by the Board of Directors to be at normal commercial terms and are as follows:
Revenue
Purchases
Licence fees
Rent
Management fees
Services
Directors’ remuneration & sitting fees
Amounts due to/from related parties were as follows:
Due to:
Shareholders holding 10% or more interest in the Company
Due from:
Shareholders holding 10% or more interest in the Company
2004
RO
40,547
81,300
===========
2003
RO
13,516,596
63,008,513
150,000
300,000
13,475
104,218
42,400
=========
4,427
===========
4,686,725
=========
===========
3,081,390
=========
With effect from 7 April 2004, Oman Refinery Company LLC and certain other Government of Oman
related entities are no longer classified as related parties.
24
Financial instruments
Exposure to credit, interest rate and currency risk arises in the normal course of the Company's business.
Credit risk
The Company has a credit policy in place and exposure to credit risk is monitored on an on-going basis. The
Company requires bank guarantees in respect of higher credit risk customers. The Company does not require
collateral in respect of other financial assets. At 31 December 2004, Government organisations in Oman
accounted for RO 3,141,004 (2003: RO 3,081,390) of the outstanding trade accounts receivable. At 31
December 2004, there were no other significant concentrations of credit risk.
Interest rate risk
The Company manages its exposure to interest rate risk by seeking to obtain financing, if possible, on a fixed
rate basis.
Foreign currency risk
The Company is exposed to foreign currency risk on sales, purchases and borrowings that are denominated in
foreign currencies other than Rial Omani. The Company is exposed to United States Dollar (“USD”)
exchange rate fluctuations resulting from an USD loan facility (see note 18), together with USD denominated
sales offset by USD denominated purchases of lubricants, sea freight and miscellaneous items. The Rial
Omani is currently effectively pegged to the USD.
Page 17
Al Maha Petroleum Products Marketing Company SAOG
32
Notes
(forming part of the financial statements)
24
Financial instruments (continued)
Fair value
As at 31 December 2004, the Board of Directors consider that the fair value of financial assets and liabilities
approximate their carrying values.
25
Contingent liabilities
The Company has issued performance guarantees amounting to approximately RO 832,381 (2003: RO
1,849,475).
26
Net assets per share
The calculation of net assets per share is based on net assets at 31 December 2004 in the amount of
approximately RO 2.403 (2003: RO 1.863).
27
Earnings per share
Basic earnings per share are calculated by dividing the net profit for the year by the weighted average number
of shares outstanding during the year as follows:
Net profit for the year
Weighted average number of shares outstanding
during the year
Earnings per share
28
2004
RO
2003
RO
2,581,288
2,096,493
6,625,000
0.390
8,500,000
0.247
Capital commitments
At 31 December 2004, the Board of Directors have authorised future capital expenditure commitments
amounting to approximately RO 1,121,685 (2003: RO 1,601,228).
29
Comparative figures
Certain comparative figures have been reclassified in order to conform to the presentation adopted in these
financial statements.
33