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30 May 2024

Enoc plans inorganic growth in 2014: Khoory

Enoc CEO Saeed Khoory addressing the Annual Strategy Meeting in Dubai (SUPPLIED)

By Staff

Dubai-based fuel retailer Emirates National Oil Company (Enoc) plans inorganic growth in 2014, expansion into new geographies and faster execution of vital projects in order to boost profitability, a senior company official said.

At its Annual Strategy Meeting, Enoc Chief Executive Officer Saeed Khoory, said: “We will continue to work with the government to serve as the energy partner ‘behind every successful journey’. The support of the Government in providing fuel at subsidised rates will continue to be relevant. Our strategic priority for 2014 is to explore new opportunities for inorganic growth led by our expansion to new geographies and developing compelling initiatives to bolster all-round growth. We aim to leverage the positive macroeconomic conditions in Dubai and other key markets to aggressively grow market share and increase product volumes.”

In 2014, he said Enoc will accelerate its capital investment programme to boost profitability by driving the fast and efficient execution of critical projects and building infrastructure to strengthen market share and support the energy needs of Dubai. Fundamental to the year’s strategy is its focus on enhancing operational efficiency by optimising resource utilisation and efficient margin management.

He said the business processes will also be continuously enhanced by leveraging knowledge management and information systems to promote better customer understanding, deploying state-of-the-art IT systems to drive growth and employing superior management information systems for faster decision-making.

Khoory said: “Enoc achieved robust growth in 2013, led by the strong fundamentals of Dubai’s economy, building on the strategic vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to establish the city as a global hub for business and tourism.

“All our core businesses – marketing, retail, terminalling and supply, trading & processing – have recorded positive performance, leveraging increased market demand. Additionally, we have expanded our footprint geographically to key emerging markets in the Middle East, Africa and South Asia, which contributed to our revenues.”

2013 revenues

Capitalising on the improved economic conditions, Enoc said its revenues grew by over 50 per cent from 2011 to 2013, while profits increased 39 per cent during the same period.

The company achieved the highest refinery throughput, a growth of 28 per cent in 2013 compared to 2011, and terminalling capacity registered a growth of 33 per cent. Sales to third parties also recorded a growth of 49 per cent.

Khoory explained that one of the fundamental drivers of the company’s growth is its focus on promoting customer satisfaction with Group Customer Satisfaction at an all-time high of 77 per cent during 2013, and the number of ‘truly loyal customers’ improving from 61 per cent in 2012 to 65 per cent last year.