Nawaf Al-Ahmad Al-Jaber Al-Sabah Sabah Al-Ahmad Al-Jaber Al-Sabah

95 Pages·2017·1.68 MB·English

His Highness Sheikh His Highness Sheikh
Sabah Al-Ahmad Al-Jaber Al-Sabah Nawaf Al-Ahmad Al-Jaber Al-Sabah
The Amir of the State of Kuwait Crown Prince of the State of Kuwait
(Humanitarian Leader)

CONTENTS
4
About Oula
5
Report Of The Board Of Directors
8
Board of Directors
13
Executive Management
Achievements 2017 14
Social Responsibility 15
Governance 16
Consolidated Financial Statements 32
About Oula
Annual Report 2017 About Oula
About Oula
Oula is always the first to encompass the services that serves different
consumer needs. It is not just a fuel company that builds stations, but also it
seeks to constantly improving them to meet today’s demands that are
reflected in its continous efforts. Since the company was founded in 2004
until today, it is continuously developing. Because Oula’s major objective is
to satisfy its customers by providing the best possible services with highest
quality, it always aims to study the local and international markets to find
out what is new in the world of fuel and station services thus, improvements
will be achieved through applying the results of these researches and studies
in reality.
Our Mission
To make Oula stations part of the daily Life, we strive to offer the highest
Annual Report 2017
standards of products and services through a network of state-of-the-art
service stations. to maintain our status as the industry leaders, we are
dedicated to continually improving products and services for our customers
in a clean and safe environment. We are committed to the well being of our
staff and delivering value for our shareholders.
Our Vision
To be the leading fuel marketing company in the region, and maintaining the
highest industry standards of health, safety, environmental protection and
quality control. while, maximizing value to the shareholders.
4
Board Report
Board Report Annual Report 2017
Board Report
M/S Shareholders,
Greetings,
On behalf of the members of the board of directors,
it gives me great pleasure to present the twelfth annual report
of your company: Oula Fuel. This report discusses the most
significant achievements and results of your company for the
financial year ending 31 December 2017. We believe that these
achievements affirm the Company’s leading position to the best of your expectations.
Eng. Abdulhussain S. Al-Sultan
Chairman
In continuation of our endeavor to upgrade fuel stations over the past years, this year
witnessed the re-development of four additional stations: Al-Fintas, Al-Qasser, the Ardiya Industrial and Jabria.
Further to the normal activities of fuel dispensing, these stations are now licensed for investment activities, such
as mini central markets, world-class state-of-the-art carwashes that incorporate the latest green technologies,
car service, and ATMs. Thus, Oula Fuel has completed the development of sixteen stations as of 2017.
In the areas of both safety and environment, the company continues its commitment to provide the latest technology
for protecting the environment by equipping all its Car wash stations with water recycling and treatment devices.
In addition, the company ensures the use of materials that adheres to the highest environmental standards. Moreover,
LED lighting has been used in Al-Fintas station, and a study of the use of solar energy has been conducted in the
West Shuaiba station to conserve energy. Work continues on the plan to install 2nd Generation Vapor Recovery System,
VRS 2, in all the stations.
As for the development of additional services, one of the largest companies that specialize in the business of central markets
has commenced its operations in three stations: Jahra, Al-Fintas and Shouhada. In addition, car maintenance service has
started operations in the stations of Khaldiya and Kabd. Furthermore, Jabriya station now offers carwash, while car detailing
services are being provided by a specialized company.
5
Annual Report 2017 BBooaarrdd R Repeoprtort
Thirteen mobile telecom towers have been installed in thirteen stations by a major telecommunication company. A contract has
been signed to manage, maintain and supply five marine stations belonging to the Touristic Enterprises Company. And another
contract has been signed with the Kuwaiti Farmers Union to sell and maintain two mobile fuel stations.
In response to the needs and aspirations of our valued customers, developments like, offering loyalty points with co-partnering companies
(Telecommunications Company), and offering special offers to the customers of a leading bank, have been undertaken. For the convenienceof
our customers, a mechanism of recharging OULA card through smart phones was developed.
You are well aware of the challenges faced by us mainly in the form of removal of subsidies on diesel and kerosene, and providing
quotas to certain customers, causing significant financial losses.
Further, red-tapes in allotting licenses and un-favorable classification of fuel stations on roads have resulted into operational issues leading
into financial losses. However, the management has taken proactive measures to ensure that these issues are being effectively tackled
to minimize the impact on operations.
Corporate governance has attained priority in the Company culture and we have adopted the best practices, thus ensuring compliance
with respective laws and regulations, apart from the laws governing Kuwait Stock Exchange and the requirements of the Capital Market Authority.
Oula’s vision which will be attained through its sound strategy is to maximize shareholders’ value by promoting the company brand and status,
increase asset base and continue development and expansion of investment infrastructure of stations, thus resulting into greater customer
experience. All these measures would translate into added revenue streams resulting into higher revenues and profits for the company.
6
Board Report
Board Report Annual Report 2017
Financial Statements:
During 2017, the total fuel income of the company reached KD 148.3 million, with an increase of 26.5% in comparison with 2016. However,
the increase is mainly due to rise in the fuel prices. There is a drop in sales volume as compared to 2016 due to which the operating profit has
reduced by KD 355K.
The company has achieved an increase of 20% in other income from ancillary activities in the year 2017 as compared with year 2016.
Oula's consolidated net profit amounted to KD 3.58 million with an increase of 3% in comparison with 2016, mainly due to increase in
income from other sources.
The total company's assets increased to reach KD 91.34 million with 1.66% increase in comparison with 2016.
Dear shareholders, in light of what we have shared with you, we request your approval for distributing Cash Dividends of 5% of the paid up
capital (5 fils for each share) to the shareholders with a record date 15 days after the general assembly meeting.
At the end, I would like to express my thanks and appreciation to my colleagues The Board Members and The Executive Management,
and to all staff for their extraordinary performances during the financial year of 2017. I also would like to thank our respected shareholders
for their continuous support for “Oula1 Fuel” and encouragement to achieve the best quality services according to
the highest standards of safety and quality control.
Eng. Abdulhussain S. Al-Sultan
Chairman
7
Annual Report 2017 BBooaardrBd oo fao Drdfi r Doefc itDroeirrcsecttoorrss
BoBaorda rodf oDfi rDeicretocrtsors
Eng.E Anbgd. uAlhbudsuslhauins sSa.i nA lS-S. uAllt-aSnultan SheiSkhh e/ iTkha la/ lT Aall-aKl hAal-lKedh aAlel-dA hAml-Aadh mAal-dS aAbl-aShabah
ChaiCrmhaainrman DepuDtey pCuhtya iCrmhaainrman
Civil Ceinvgili neenegriinnege rgirnagd guraated ufraotem f rthoem U thneiv Uernsiivtye rosfi tTyR oIf TRI
BachBealocrh oelfo Br uosf iBneusssin Aedssm Aindismtrinatisiotrna BtioAn, LBeAe,d Lse Uednsiv Uernsiivtye,r sity,
StateS Utanteiv Uernsiivtye rIsni tAy nInd aAynadnaay -a Anam -e Aricmae 1ri9c8a0 1980
UniteUdn Kiteindg Kdoinmg dUoKm 1 U98K2 1 M98a2s tMera dsteegrr deee gorfeBeA o, fLBeAe,d Lse eds
UnivUernsiivtye,r sUiKty ,1 U98K6 1986
ExpeErixepnecreie:nce:
- A ci-v iAl ecnivgili neenegri nine ethr ein M thineis Mtryin oisft rWy oorfk Ws ofrrokms f1ro9m80 1 t9o8 109 t8o6 1.986. KuwaKiut wOaili tC Ooiml Cpaonmypany
- Civi-l Cenivgili neenegri nine ethr ein p trhivea pter ivsaetceto sre fcrotomr f1ro9m86 1 t9o8 260 t0o8 2.008. -Anal-yAsnt a(Ulynstd (eUr nDdeevre Dloepvmeleonptm) feronmt) f3ro/1m/1 39/813/1 t9o8 331 t/o3 /3119/833/1983
- Adv-i sAodr vtios othr eto e tdhieto er doift othr eo fK tuhwe aKitui wneawitis npeawpsepr aApl-eNr aAhl-aNr ainh a2r0 i0n7 2.007. -Adm-iAndismtraintiisvter aOtifvfiec eOrf fi(Ucenrd (eUr nDdeevre Dloepvmeleonptm) ent)
- Edit-o Er doift oKru owf aKitui wneawitis npeawpsepr aApl-eDr aArl -fDroamr f2ro0m07 2 t0o0 270 t1o2 2.012. from f1ro/4m/1 19/843/1 t9o8 235 t/o1 02/51/91806/1986
- Cha-i rCmhaanir mofa tnh eo fB tohaer dB ooaf rDdi roefc Dtoirresc otof rtsh eo fO thUeL AO UFuLeAl Fuel -Hea-dH oefa Rde ocfr uRietmcreunittm Deenpta Drtempeanrttm freonmt f2ro5m/1 02/51/91806/1 t9o8 162 t/o1 /1129/910/1990
Mar k Metainrgke ftrionmg f2ro0m10 2 u0n1t0il nuonwtil. now. -Hea-dH oefa Pdu obfl iPc uRbelilca tRioenlas tDioenpsa Drtempeanrttm freonmt f1ro3m/1 /1139/910/1 t9o9 109 t/o3 /1199/939/1999
- CEO- C oEf OUl toraf UHltorlad iHngo.lding. -Mana-Mgaenr aogf ePru obfl iPc uRbelilca tRioenlas tGiornosu Gp rforoump f2ro0m/3 /2109/939/1 t9i 9190 /t2i /1200/020/2000
- Star-t eSrt ainrt emr uinlt ipmleu lKtipulwe aKitui wneawitis npeawpsepr.aper. -Man-aMgaenr aogf ePru obfl iPc uRbelilca tRioenlas taionnds Manedd iMa eGdrioau Gp roup
A meAm mbeerm obfe trh oe fa tshseo acsiastoiocnia:tion: from f1ro1m/2 /1210/021/2 t0o0 112 t/o1 11/22/01011/2001
- A m-e Am mbeerm obf ethr eo fK tuhwe aKitu Swoaciti eStyo coief tEyn ogfi nEenegrisn.eers. KuwaKiut wOaili tT Oanilk Tearsn kCeorsm Cpaonmypany
- Kuw- aKitui wmaeitmi mbeerm obf ethr eo fA tlhuem Anliu Amsnsoi Acisastioocnia.tion. ChairCmhaanir mofa Bno oafr dB ooaf rDdi roefc Dtoirresc ftroorms f2ro1m/5 /2210/153/2 t0o1 237 t/o7 /2270/173/2013
- Mem- Mbeerm obf ethr eo fA tshseo Acisastioocnia otifo Knu owf aKitui wjoauirtin jaoluisrtnsa.lists. CEOC frEoOm f2ro8m/7 /2280/173/2 t0o1 p3r etos epnretsent
- Mem- Mbeerm obf eKru owf aKitu Hwuamit aHnu mRiagnh tRs igShotcsi eStyo.ciety.
- Mem- Mbeerm obf ethr eo fK tuhwe aKitui wRaeidti CRreeds cCernets cSeoncti eStyo.ciety.
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Board of Directors Annual Report 2017
Board of DirecBtooarsrd of Directors
Eng. Adel ME. nAgl-. AAwdaedl iM. Al-Awadi Sh. Khaled SAhh.m Kahda Mle.d AAlh-Smaabda Mh. Al-Sabah
Board MemBboear r&d CMEeOm ber & CEO Board MemBboear rd Member
Bachelor of BSacciehnecloer, oDfo Sucbileen Mcea,j oDro Cuobmlep Muatejor rE Cnogminpeeurtienrg E &n gineering & Deputy ManDagepinugt yD Mireacntaogri n- gM Darikreectitnogr - Marketing
Computer SCcioemncpeu tMeria Smcii eUnnciev eMrsiaitmy,i UUSnAiv 1e9rs9i3ty, USA 1993 C r u d e O i l & C P re u t d r oe l eO u i lm & P Preotdruocletus.m Products.
-An Executiv -eA wn iEthx 2e5cu yteivaer sw oitfh I n2t5e ryneaatrios noaf l ICntoemrnmateiorcniaall COoilm Tmraedrec i&al Oil Trade &
Work ExperWienocrke Experience
Sales exper ieSnaclees. experience.
Oula Fuel MOarukleat Finuge lC Momarpkaentiyn g2 0C0o5m –p tailnl yd a2t0e05 – till date
-After his gr a -dAuftaetrio hni sin g 1ra9d9u2a wtioitnh iBnS 1s9 9P2e twroitlhe uBmS sE nPgeitnroeleeru, mhe E sntagrinteede rh, ishe started his
Joined the coJmoipnaendy t haes cMoamrkpeatninyg a, sS Malaersk aentindg P, RS aMleasn aangde rP uRn tMil anager until
career as Sa lceasr eReerp ares sSeanlteasti vRee ipnr eCsreundtea tOiviel Sina lCersu Ddee pOairl tSmaelenst (D19e9p4a-r1tm99e8n)t. (1994-1998).
2007, then a2ss0i0g7n,e tdh eans aDsespiguntye dM aasn aDgeinpgu tDy iMreacntoarg oinf gM Dairrkeecttionrg ,o f Marketing,
Worked in I n Wteronraketiodn ina l IMntaerrkneattiinogn asle Mctaorrk ient iCngru sdeec, tMora irnin Cer,u Ldoen, dMoanr Oinfefi,c Leondon Office
Sales and OpSearlaetsio annsd u Ontpile 2ra0t1io0n, sla utenrt itl h2a0t1 s0a,m laete yre tahra pt rsoammoet eyde ator promoted to
as Asst. Ma n aasg Aers. st. Manager.
Vice PresideVntic oef PMraerskideetinngt oafn Md aBrkuestininegs sa nDde Bveulsoipnmesesn Dt. eInv e2lo0p1m2 ent. In 2012
and for one yaenadr fhoer ownaes ytheea rC hoen wsualsta tnhte o Cf tohnes MultDa.n Itn o 2f 0th1e3 MheD .w Ians 2 013 he was -Worked as M-Wanoarkgeedr a–s N Mapahntahgae/Mr –o gNaasp/LhPthGa/ MSaolgeass i/nL P20G1 3S.a lHese iwn a2s0 1a3ls.o He was also
assigned by athses iBgnOeDd absy tthhee CBEOOD oafs t hthee c CoEmOpa onfy t.he company. the head of LthNeG h Neaedg ootfia LtiNoGns N Ceogmotmiaittitoenes. Committee.
Al-WataniyaA Tle-Wlecaotamnmiyau nTieclaetcioomn Cmoumnipcaantiyo n(O Cooremdpoaon)y 2 0(O00o-r2e0d0o5o ) 2000-2005
-Worked as M-Wanoarkgeedr a–s P Mlaannnaingge,r M– aPrklaentinnign gin, MAuagrk.e 2ti0n1g7 i.n Aug. 2017.
Joined the coJmoipnaendy t haes cAosmsipsatannyt aMsa Ansasgiestra onft MMaarnkaegtienrg oafn Md aSrkaeletisn,g and Sales,
-Appointed a -sA Dppeopiunttye dM aasn aDgeinpgu tDy iMreacntoarg -i nMga Drkireetcintogr C- rMudaerk Oetiiln &g Crude Oil &
then he was tphreonm hoete wda tso pMroamrkoetteindg taon Md aCrkoemtimngu naincda tCioonm Mmaunnaigcearti.on Manager.
Petroleum P rPoedturocltesu imn OPcrotodbuecrt s2 0in1 7O catnodb eisr r2e0s1p7o nasnidb lies oref sfopuorn Ssiabllees of four Sales
Zain CommuZnaiicna Ctioomn Cmoumnipcaantiyo n(M CToCm) p19a9n3y- 2(M00T0C) 1993-2000
department s d (eCpraurdtem Oenilt,s N (aCpruhdthea O/Milo, gNaasp/LhPthGa/,M Moidgdalse/ LDPisGti,l lMatiedsd,le Distillates,
Joined as a PJoroingeradm ams ear ,P trhoegnra pmrommeor,t ethde tno pSreonmioort eEdn gtoin Seeenr,i othr eEnngineer, then
Fuel Oil and FSupeelc Oiaill Panrodd Supctesc &ia lB Purnokdeurcst)s. & Bunkers).
Specialist IT SDpeepcaiartlmiste InTt. Department.
- Also respo n-s Aiblsleo froers aplol nKsPibCle R feogr iaolnl aKlP OCf fiRceegs ioinn Laol Ondffiocne, sS iinn gLaopnodroen, , Singapore,
Japan, Kore aJ,a Cpahnin, aK, oInredaia, Canhdin Pa,a Iknisdtiaan a tnod e Pnaskuirseta tnh atot tehnesyu arded t hvaatl utheey add value
to the devel o tpom theen td oefv beelonpemficeinatl oref lbaetinoenfischiiapls r ealnadti opnrosfihtiapbs lea ncdo nptrroaficttasb.le contracts.
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MMohoahmammmada dE qEaqba bA lA-Kl-hKahtaeteebeb AlAi lAi .A A. lA-Bl-aBgahglhili
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