Puma Energy, the global integrated midstream and downstream energy company, which is gearing up to enter the fuel retail market in Ghana, after acquiring Oil Marketing Company – UBI, had its 2015 full-year profit shoot up by 5%, its audited full-year results for the period ended 31 December 2015 has shown.
• Significant sales growth performance with volumes increasing by 28%
• Another standout year with gross profit and EBITDA increasing by 5% and 3% YoY
• Sustained strong operating cash flows
• Demonstrated resiliency of business model through challenging macro-economic environment
• Increased storage capacity from 5.6 Mm3 to 7.7Mm3, and added 400 new service stations, via organic and acquisitive growth
• New market entries into South Africa, Colombia, Peru and UK.
Puma Energy CEO, Pierre Eladari, said in a statement: “In a difficult macro-economic environment, Puma Energy’s stable strategy, proven business model and strong sales volume growth places us amongst the best-performing majors, confirming our status as an industry leader in 2015. Furthermore, we are encouraged by the outlook for mid-to-long term opportunities, retaining our disciplined focus on infrastructure and growth markets.”
“In 2015, we entered five countries via strategic acquisition and organic construction, made significant increases to our storage capacity, added 400 service stations, and created long-term job opportunities in high-value markets. In addition, I am confident that Puma Energy is looking at an improved performance in Q1 2016,” Mr Eladeri said.
Also commenting, Denis Chazarain, CFO, said in a statement: “Puma Energy’s ability to attract support in the current market environment is a great confirmation of our diversified business model. In addition to our ability to generate significant cash flow, we proved yet again our attractive position by further diversifying our funding mix, as demonstrated through our successful renewal of our US$1,250,000,000 Revolving Credit and Term Loan facility in May 2015 and US$100m private placement in January 2016 – the second since our inaugural public bond issuance in 2014. The success of this placement, and our ability to deliver market-leading sales, demonstrates the level of confidence shown by the capital markets that we will look to strengthen further in 2016.”
The international fuel trader’s Chief Operating Officer Christophe Zyde, recently told the B&FT in Johannesburg during the company’s launch of operations in South Africa that through the UBI acquisition, the company has got some 18 fuel stations, with an additional two, to start with.
Puma Energy, he said, has acquired a licence and necessary authorisation from Ghana’s National Petroleum Authority to operate as an oil marketing company in the country.
“Two weeks ago, we received approval from the NPA to change the name UBI to Puma Energy; and that, of course, will go hand in hand with rebranding the fuel stations. You will now see the Puma Energy brand coming up in Ghana,” Mr Zyde said.
The company, he said, has met the NPA’s requirement that stipulates OMCs coming from abroad should be 50%-owned by Ghanaians to encourage strong local participation in the business of oil marketing.
“We are truly a Ghanaian company because more than 50% of our shareholding is Ghanaian,” he said.
While it is now entering the retail sector, Puma Energy is not new to Ghana; it is already a major player in the supply of aviation fuel. The company has a number of infrastructures in the country – a 46million litre depot in Takoradi, an aviation depot at the Kotoka Aiport, and an ongoing 100million litre terminal in Tema.
The company currently sells some 6 billion litres of fuel in 47 countries globally,19 of which are in Africa.
“In Africa we have 660 retail stations, and I can tell you that those statistics are typically valid only for a week because they keep changing,” Mr Zyde told the B&FT.
“Puma Energy’s business model is to link demand with supply, through investment in infrastructure. It therefore makes a lot of sense for Puma Energy to be in Africa because it is a high-growth area, but there is a lack of infrastructure,” he said.