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DIMOIL SA

STRATEGIC PLANNING STUDY


Dr. Kiriakos Tobras * Rachel Makri MSc Banking

MAY 2012

CONTENTS

1
INTRODUCTION
3
2
MACROECONOMIC ENVIRONMENT
4
2.1 DEMOGRAPHIC ANALYSIS OF GREECE
4
2.2 MACROECONOMIC ENVIRONMENT
5
2.3 THE PETROLEUM PRODUCTS MARKET
6
2.3.1 HISTORICAL REVIEW OF THE GREEK PETROLEUM PRODUCTS MARKET 6
2.3.2 DOMESTIC MARKET DEPENDENCE ON PETROLEUM
9
2.3.3 STRUCTURE OF THE DOMESTIC MARKET
10
2.3.4 MARKET SHARES
12
2.3.5 FINANCIAL ANALYSIS OF THE MARKET
13
2.3.6 PROBLEMS, OPPORTUNITIES AND RECENT DEVELOPMENTS
16
3
BACKGROUND AND CURRENT STATE
19
3.1 THE COMPANY: BACKGROUND OBJECTIVE OF WORKS
19
3.2 FACILITIES
19
3.3 MANPOWER
21
3.4 MAJOR SUPPLIERS AND CUSTOMERS
21
3.5 SUMMARY OF PAST FINANCIAL DATA
22
3.6 LATEST DEVELOPMENTS CURRENT STATE
26
3.7 OBSERVATIONS - CONCLUSIONS
27
4
METHODOLOGY
28
5
STRATEGY
29
6
FINANCIAL MODEL ASSUMPTIONS
31
6.1 2009 BALANCE SHEET ADJUSTMENTS
31
6.2 RESULTS 2010-2014
31
6.3 ASSETS 2010-2014
35
6.4 LIABILITIES 2010-2014
37
6.5 SUMMARY FINANCIAL DATA 2010-2014
39
7
CONCLUSION
40
8
APPENDIX
42

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

INTRODUCTION

The aim of this study is to determine the viability of the company based
on its internal needs and the competitive forces, in the new enlarged
environment of the single European market. This is followed by an
exploration of the possibilities, conditions, and prospects for its
development.
It thus sets out the strategy of DIMOIL SA for the period 2009-2013.
The study is structured as follows:

Section 2 is an analysis of the macroeconomic environment in which


the Company operates. In particular, it provides data and information
on the demographics of Greece, the main macroeconomic indicators of
the Greek economy and information on the petroleum products market,
in which the Company operates.

Section 3 presents information on the history, scope of operations, the


ownership structure, and management structure of the company,
information on its staff and customers as well as the display and
analysis of the companys historical financial data.

Section 4 describes the methodological approach of this business plan.

Section 5 formulates the main strategic directions of the company


during the next six years.

Section 6 details the financial models conditions. Additionally, it


provides an overview of the basics of financial reporting for the next
six years.

Section 7 summarizes the conclusions regarding the companys results,


in conjunction with the consistency check of its results compared to
past performance and the corresponding market performance.

Section 8 is the Appendix of the study.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

MACROECONOMIC ENVIRONMENT

The population growth in the Greek territory, the evolution of economic


fundamentals such as GDP, inflation, consumer spending and the trade
balance of fuel, combined with statistical figures of the petroleum
products industry are the main variables affecting the studied market.

2.1 DEMOGRAPHIC ANALYSIS OF GREECE


In early 2001, according to the last census, the Greek population stood at
11 million inhabitants, representing a growth rate of around 6.4% for the
period 1991-2001 (see Figure 1). A characteristic of the Greek population
is the increasing percentage of people over 64 years, and the concurrent
reduction of the percentage of those aged up to 14 years (see Chart 2).
Chart 1
DEVELOPMENT AND CATEGORIZATION OF POPULATION
BY SEX
12
10
8
WOMEN

MEN

4
2
0
1971

1981

1991

2001

2002

2003

Source: NSS

Chart 2
DEVELOPMENT AND CATEGORIZATION OF POPULATION

BY AGE
70%
60%
50%

0-14 YRS

40%

15-64 YRS

30%

64 YRS AND ABOVE

20%
10%
0%
1971

1981

Source: NSS

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

1991

2001

The majority of the population is concentrated in the greater Athens area


(4 million inhabitants), followed by Macedonia and the Peloponnese with
2.3 million and 1.2 million inhabitants respectively.
According to recent estimates by the NSS, the total population of
permanent residents in Greece on 1 st January 2011 was 11.5 million,
51% women and 49% men.
It is worth noting that in recent years, migratory flows have increased
sharply and rapidly in our country. According to the 2001 census, our
country hosts 762.191 immigrants, 415.552 men and 346.639 women,
corresponding to 7% of the population. However, according to recent
estimates, this figure has now exceeded 12%, with the majority of
immigrants concentrated in eastern mainland Greece (Attica, Viotia and
Fthiotida) and in the north-eastern and southern Peloponnese.

2.2 MACROECONOMIC ENVIRONMENT


Despite the recent debt crisis, macroeconomic environment in Greece has
been positive by up to 2008, helped by the Olympics in 2004, which
accelerated the pace of GDP growth to among the highest of the
European Union. Inflation has declined significantly (from 8.2% in 1996
to 2.9% in 2007), due mainly to the countrys effort to achieve
convergence with the corresponding European Union average, has been
relatively stable since the single currency was adopted.
Table 1 lists key macroeconomic indices of the Greek economy for the
period 2004-2008.
Table 1 : Macroeconomic indices 2004-2008
DEVELOPMENT OF SELECT MACROECONOMIC INDICES 2004-2008
2004
2005
2006
2007
2008
GDP ( bn) at current annual values 185,85 197,65 213,21 228,18 242,95
% real change in GDP
4,9
2,9
4,5
4,0
2,9
Inflation %
2,9
3,5
3,2
2,9
4,2
Consumer spending ( bn)
128,53 138,95 150,63 160,16 170,53
Trade balance of fuel ( bn)
-4,51
-6,63
-8,76
-9,22 -12,15
Source: NSS

The negative economic climate since the end of 2007 has brought about
serious losses, particularly in money and capital markets. Inflation surged,
in both developed, but especially in developing economies, influenced
decisively by the increase in fuel, goods, and foodstuffs prices.
Furthermore, the forecast growth rates were continuously revised
downward, since the main characteristic of the current international

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

economic situation is an unusual uncertainty that compromises any direct


future prediction.
The worsening economic climate in Greece is in line with similar
developments in the relevant index in the S.E. European Union, close to
the lowest level in years. However, Greek economy remains introverted
(foreign trade represents a low percentage of GDP).
This year too, the dynamics of domestic demand, albeit weak, will form
the key instrument of the national Greek economy. In 2008, growth in
Greece stood at 3%, while according to estimates of international and
domestic organizations (EU Commission, OECD, Bank of Greece), Greek
GDP was shrink in 2009 - for the first time since 1993 - by 1.3%, as
domestic demand drops due to tightening credit and the breakdown of
trust.

2.3 THE PETROLEUM PRODUCTS MARKET


2.3.1

HISTORICAL REVIEW OF THE GREEK PETROLEUM


PRODUCTS MARKET

As with many other sectors in Greece, the petroleum distribution market


preceded the building of the required infrastructure for the production of
these products by several years. The presence of the first distributors of
petroleum products in Greece dates back to before the 1950s, when
organised distribution networks made their first appearance package,
featuring central and regional storage facilities, vessels and road tankers.
The first Greek refinery, in Aspropyrgos, was built in the 1950s by a
consortium of public and private funds. After several years of operation,
the refinery passed into the hands of the government, which maintains
significant shares to date. The presence of this refinery alone
revolutionised the previous de facto trade practices, allowing distribution
companies to buy small quantities of petroleum products and serve their
distribution networks with local petroleum products. In the meantime,
two new refineries were added to the countrys production capacity: the
Motor Oil Refinery in Aghioi Theodoroi of Corinth and the Petrola refinery
in Elefsina, in the early 1970s. These three refineries, and another in
northern Greece, founded in the 1960s, created the conditions for
developing a national energy policy that would not only serve the
immediate needs of consumption, but also later meet EU requirements on
emergency stocks. Through mergers, the number of independent Greek

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

refineries is now reduced to two, with Hellenic Petroleum (ELPE)


dominating the market, after the integration of Esso Pappas (Thessaloniki)
and the merger with Petrola.
Up to August 1992, retail prices in Greece were fully supervised by the
State. Thus, distribution companies were forced to operate in a regime of
very small and controlled margins. The reason the Greek State imposed
this regime from the outset was that it did not wish to cede pricing in this
key sector to a market structure that, at the time, featured all the
characteristics of an oligopoly, especially in the area of distribution. Today,
this regime has been abandoned in alignment with the general EU
petroleum products trade scheme, and prices are set freely by the
petroleum products trading companies and gas stations.
The geographic dispersion of the centres of consumption in Greece,
particularly the existence of the archipelago in the Aegean, required the
operation of many, small storage facilities, which serve as hubs for the
distribution of these products. The supply of these facilities, which were
designed to allow supplies by sea, led to the creation of a local fleet of
tankers whose task was, and still is, to fill the tanks of regional facilities,
at favourable transportation costs.
While the stocks of regional facilities were replenished - and largely still
are - by sea, the corresponding supply of the gas station network in the
province, but also in major cities, requires 1800 large road tankers, of
which 500 belong to petroleum products companies. This significant fleet
of vehicles is supplemented by smaller tankers, mainly for the distribution
of diesel.
Until very recently, the major distributors of petroleum products had
avoided operating in the field of maritime transport in Greece, but there
are indications that, given the increased demands for protection of the
marine environment, some companies already start acquiring ships.
Contrariwise, many companies in the sector chose to keep fleets of road
tankers, to achieve a certain balance between vehicle companies on the
one hand and public-use tanker truck owners on the other. There is longstanding rivalry between commercial companies and the Private Tanker
Truck Owners Federation.
Given that Greek refineries produce according to international standards,
the decisions by companies trading and distributing petroleum products to
buy from domestic producers or import, are significantly influenced by
factors such as price, transportation costs, the cost of maintaining
reserves, quality of service and of course ensured continuity and

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

consistency in the supply of their networks. Another important factor is


the trading companies risk aversion to the value fluctuation of stocks, to
which they are exposed when importing.
Within a relatively short time, Greek petroleum products companies
managed to obtain a significant market share from foreign petroleum
products companies, exploiting the limited pricing flexibility of their
competition. Any further market share detachment from large companies
though is to become increasingly difficult as the Greek companies
approach these in size, but mainly due to adoption of defence policies by
foreign companies, since this market is very competitive, especially in the
part concerning sales to retail gas stations.
The petroleum-trading sector in Greece employs approximately 2.500
people directly, but the number of indirectly employed in their trading and
distribution is estimated at 100.000 people. As in other countries, the
benefits for the wider Greek economy from the good functioning of this
sector are important, as is the corresponding impact of any problems in
this area, because of the direct and significant influence fuel prices exert
on all sectors of the economy.
At this point, we believe it is useful to present a summary table with the
main changes in the Greek oil market from 1984 to today.
Table 2: Main changes in the Greek oil market
1984. EKO buys all ESSO Papas shares and acquires the control of all the multinationals
plants.
1998. Full absorption of the facilities and gas stations of MOBIL OIL HELLAS from BP
HELLAS.
1999. TOTAL merges with CYCLON.
2000. International exchange of markets between TEXACO & SHELL (Greece-UK) with
complete absorption of the first companys gas stations by the latter.
2001. Merger-acquisition of the facilities and gas of C. Mamidakis SA by EKO-ELDA
SA.
2003. Petrola Hellas SA merges with ELPE by acquisition
2009. Acquisition of all commercial activities and storage facilities of BP Hellas by
Hellenic Petroleum.
2011. Acquisition of all commercial activities and storage facilities of SHELL Hellas by
Moto Oil.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

2.3.2

DOMESTIC MARKET DEPENDENCE ON PETROLEUM

Greece is one of the European countries noted by high dependence on


imported oil. Despite the possible existence of oil in various parts of
Greece and the small oil extraction unit in Prinos, Greece, at the moment,
is not considered an oil producer. Instead, it imports all the oil it uses,
albeit today a large percentage of imported oil is crude, while, fifty years
ago all imports were in the form of refined petroleum products. The main
countries of origin of imported crude oil to Greece are Iran and Russia,
while smaller quantities come from Saudi Arabia, Libya, Kazakhstan, and
other oil producing countries.
Although Greeces energy dependence is directly comparable to other
European countries, such as Portugal, Spain, or Italy, and is possibly
slightly better because of the extensive use of lignite for power
generation, it suffers from poorly differentiated energy sources, and is
thus dependent mainly on oil.
Chart 3 shows that petroleum accounted for most of the gross energy
demand in Greece in 2007. This extensive energy dependence on
imported oil is not expected to change in the immediate future given the
low level of renewable energy use in Greece.
Chart 3: Energy sources in gross consumption in Greece, 2009

Make-up of energy sources in


gross consumption in Greece
2009
Renewable energy sources
4%
Natural gas
10%

Lignite and coal


27%

Imported
electricity

Lignite and coal


Oil
Imported electricity

1%

Natural gas
Oil
58%

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

Renewable energy
sources

2.3.3

STRUCTURE OF THE DOMESTIC MARKET

The domestic oil market operates on three levels: refining, wholesale


trading and retailing. Diesel and heating diesel are the most popular
products in Greece, followed by petrol, while the largest consumer is the
transport sector.
Chart 4 shows the oil value chain from the perspective of the Greek
market. We see that part of finished petroleum products consumed in the
Greek market, is imported directly from international oil markets, without
going through the Greek refining companies. Simultaneously, part of the
oil produced in Greece bypasses the oil trading companies.
Chart 4: The oil value chain in the Greek market

. Refining Market
In the refining market, domestic and foreign refiners and importers of oil
sell petroleum products to domestic oil trading companies. Following the
absorption of Petrola by the Hellenic Petroleum group, the Greek oil
refining market has few players. Hellenic Petroleum owns the refineries of
Aspropyrgos, Elefsina and Thessaloniki, while the refinery at Aghioi
Theodoroi in Corinth is owned by Motor Oil. Today, the capacity of

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

10

refining units covers domestic consumption of all products. In 2007, oil


imports were reduced to 29% of domestic consumption, 20% less than
exports (in terms of tonnes of oil equivalent).
The operation of refineries affords them EBIDTA of around 4% -5%. It is
worth noting that this productive sector is obliged to sell exclusively to
trading companies and large end-consumers and not directly to
consumers. The financial results of refineries, however, vary by activity
and sometimes part of product sales on the domestic market may be in
the red, as it is significantly affected by the valuation of stocks, whose
value is directly linked to changes in international prices of crude oil and
the size of the international refining margins.
. Wholesale trading
In wholesale trading of petroleum, trading companies sell petroleum
products to gas stations. The wholesale market in the oil sector counts
twenty (22) companies, and there is a significant number of smaller
companies that either sell a limited variety of products or specialize in
services to a specific type of customer.
The market is noted by the heterogeneity of firms, both in size and in
terms of purpose. The degree of industry concentration is high, although
in recent years it is marking a downward trend, reflecting the
redistribution of market shares to smaller trading firms.
Another feature of the market is the small gross profit margins
businesses operate, which were smaller than all other trade sectors for
the period 2005-2007 (see Annual Greek Commerce Report 2008), at
9.5%.
Regarding the regulatory framework, the Competition Commissions
recent recommendations have proposed measures for the functioning of
wholesale trading, which are already applied and relate to the obligation
of companies issuing invoice discounts to:
- establish objective nationwide criteria for their issuance
- notify the Competition Commission of the criteria and conditions
under which discounts are provided
- indicate the discount amount (Euro/litre) on their sales invoices.
C. Retail market
The retail sector consists of a large number of gas stations, 8.200 in mid2010. Given the population of Greece, this is the largest number in
Europe, based on a ratio of gas stations per 1 million inhabitants, and
indeed more than twice the corresponding European average (743

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

11

stations/1 million inhabitants compared with 260/1 in Europe), according


to the NOIA (National Oil Industries Association).
The retail sector in Greece is fragmented, due to the topography of the
country, and the general trend for self-employment in the Greek economy.
As in the case of oil trading companies, retail companies profit initially
from a surcharge on the price at which they buy. As evident, the location
of the station plays a particularly important role in its operation. Each
station has some geographic monopoly characteristics, which may enable
it to have lower or higher prices - compared with neighbouring stations.

2.3.4

MARKET SHARES

The Greek oil market is highly concentrated, as the five largest fuel
marketing companies control 56.00% of total turnover, which in 2010
amounted to about 15.20 billion, marking an increase of 30.00%
compared to 2007, when it amounted to 11.70 billion.
According to a Stat Bank survey, despite the fact that 70 companies
operate in the Greek oil market, six of them control 63% of a pie worth
14 billion in 2008.
The following Table shows the market shares of the fifteen largest
companies operating in the oil market for the years 2005-2008.
Table 3: Market shares of the petroleum market companies
COMPANY
-LD
SHELL
BP
JET OIL
AEGEAN
AVIN
L
REVOIL

CYCLON
SILKOIL
KAOIL
DRACOIL
SUNOIL
KMOIL
Sourse: STATBANK

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

2005

2006
17,30%
15,50%
15,50%
7,60%
6,00%
8,50%
5,00%
4,20%
3,40%
1,90%
3,50%
2,20%
2,40%
1,10%
0,80%

2007
17,20%
14,90%
16,70%
7,60%
7,00%
8,20%
5,50%
4,90%
3,60%
2,30%
3,40%
2,10%
2,20%
1,10%
0,50%

2008
16,77%
14,10%
15,44%
7,87%
7,87%
8,27%
6,00%
5,17%
3,82%
2,46%
3,27%
2,02%
2,25%
1,24%
0,82%

16,14%
13,11%
9,87%
9,05%
7,96%
7,20%
5,25%
4,04%
3,77%
2,82%
2,46%
1,46%
1,44%
0,87%
0,62%

12

2.3.5

FINANCIAL ANALYSIS OF THE MARKET

Total sales for the 70 largest traders of petroleum increased by 21.4% in


2008 while their overall profitability dropped sharply by 69% compared
with 2007. This result comes from the nationwide STAT BANK survey
according to which the total sales of 70 companies rose from 11.7 billion
in 2007 to 14.2 billion Euros in 2008. Accordingly, their overall profits fell
from 122.1 million Euros in 2007 to 37.9 million in 2008. In essence, oil
traders further reduced their average net profit margin from 1.05% in
2007 to 0.27% in 2008.
EKO was first in terms of turnover (it belongs to Hellenic Petroleum ELPE), which after a 14.8% increase, achieved a turnover of 2.28 billion
Euros. The company, however, marked a sharp drop in profits of 88%,
which dropped to 2.3 million Euros. On the positive side, however, it
marked a significant reduction of 15.6% in total liabilities.
Shell was in second place, marking considerable losses - over 14 million
compared to its very high profits in 2007.
Third in terms of turnover is BP, which showed an increase in turnover of
11%, reaching 1.4 billion Euros. Nevertheless, the companys profits of
47.3 million Euros in 2007 fell to 14.8 million.
With 620 gas stations, Jetoil increased its sales by 36% and its net profit
from 4 million in 2007 to 5.7 million in 2008.
Aegean Oil is in the fifth position in terms of turnover (about 1.1 billion)
and increased its profitability by 5.2%.
MOTOR OILs Avin is marking a very positive course. The company
increased its profitability by 156%.
Elin Oil and Revoil are next on the list of company sales. Elin experienced
soaring profits while Revoil remained at high levels of profitability.
The financial results of the 70 largest oil traders are shown in the table
below.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

13

NETOIL SA
ELPETRA ENERGY SA
CHEVRON SHIPPING PRODUCTS
HELLAS SA
SAMERKAS SA
MEDITERRANEAN OIL SA

144.063.944

16,2%

561.703

2.826.317

403,2

148.415.891

132.250.127

-10,9%

549.499

1.102.323

100,6

100.874.292
40.426.055
75.606.504
73.220.309

123.880.932
94.690.146
90.021.341
88.033.699

22,8%
134,2%
19,1%
20,2%

69.712
-220.550
6.398.171
77.331

-3.182.912
615.081
6.477.248
15.557

1,2
-79,9

60.408.624

74.121.085

22,7%

634.606

439.533

-30,7

39.616.909
36.558.914
37.114.190

55.943.902
47.839.199
45.528.740

41,2%
30,9%
22,7%

-457.795
254.064
-31.822

23.422
1.033.387
123.508

306,7
-

30.780.215

34.811.911

13,1%

1.174.105

-398.042

23.561.220
29.873.304

33.422.660
32.769.375

41,9%
9,7%

574.858
15.915

587.841
5.785

2,3
-63,7

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

228.877.000
97.712.105
252.478.043
59.095.000
14.764.179
13.725.000
34.297.000
19.186.605
5.057.575
25.526.000
2.662.193
5.022.216
2.194.283
2.805.463
2.912.894
2.122.587

223.427.000
94.006.662
229.335.561
62.976.000
16.196.113
15.858.000
35.677.000
19.803.284
5.533.894
27.748.000
2.916.493
5.778.002
1.617.175
-6.582.587
4.269.107
290.640

380.699.000
294.390.748
247.719.003
299.955.000
134.247.224
177.868.000
114.191.000
38.255.738
52.523.244
65.480.000
40.405.576
9.677.703
7.808.898
32.936.290
19.445.469
43.477.098

321.249.000
258.285.082
206.236.533
306.228.000
157.969.707
165.838.000
102.810.000
45.440.511
55.533.012
82.450.000
40.446.756
7.560.967
8.223.890
36.011.239
23.432.494
43.375.744

1,66
3,01
0,98
5,08
9,09
12,96
3,33
1,99
10,39
2,57
15,18
1,93
3,56
11,74
6,68
20,48

1,44
2,75
0,90
4,86
9,75
10,46
2,88
2,29
10,04
2,97
13,87
1,31
5,09
-5,47
5,49
149,24

3.943.479

5.235.798

19.943.873

8.678.125

5,06

1,66

4.907.411

4.822.241

22.126.154

11.259.493

4,51

2,33

2.145.758
4.285.519
15.258.056
3.165.583

-950.276
5.107.037
20.303.306
3.168.049

20.517.950
4.515.600
10.657.005
15.404.840

27.018.708
6.949.319
6.261.060
15.362.706

9,56
1,05
0,70
4,87

-28,43
1,36
0,31
4,85

1,96%
0,83%
-2,57%
0,65%
7,20%
0,02%
0,59%
0,04%
2,16%
0,27%
-1,14%
1,76%
0,02%

DEBT EQUITY
RATIO 2008

123.948.106

0,10%
-0,76%
1,06%
0,45%
0,13%
0,25%
0,23%
0,37%
0,13%
0,92%
0,26%
1,08%
1,69%
-4,39%
0,05%
-0,97%

DEBT EQUITY
RATIO 2007

-87,9
-68,7
42,5
5,2
156,7
1411,3
-21,7
17,4
18,4
-11,0
7,2
23,1
-86,2
-43,0

TOTAL
LIABILITIES
2008

2.317.000
-14.117.291
14.780.552
5.724.000
1.497.722
2.528.000
1.738.000
2.118.280
715.506
3.675.000
910.451
2.958.221
3.811.436
-9.658.050
94.987
-1.979.315

TOTAL
LIABILITIES
2007

19.189.000
21.122.778
47.259.326
4.018.000
1.423.616
985.000
115.000
2.703.732
609.276
3.105.000
1.022.602
2.760.103
3.095.947
40.328
685.892
-1.384.614

TOTAL OWN
FUNDS 2008

CHANGE
2008/2007%

14,8%
15,7%
11,1%
35,9%
35,5%
23,3%
22,6%
28,4%
31,8%
42,3%
21,7%
4,5%
12,4%
24,2%
30,5%
15,7%

TOTAL OWN
FUNDS 2007

PROFIT BEFORE
TAXES 2008

2.285.945.000
1.856.721.069
1.397.522.153
1.281.047.000
1.127.308.778
1.019.054.000
743.920.000
571.993.228
533.339.940
399.245.000
348.756.506
273.052.004
225.827.583
219.821.179
206.961.765
204.432.702

14

NET PROFIT
MARGIN 2008

PROFIT BEFORE
TAXES 2007

1.991.653.000
1.604.825.990
1.257.975.751
942.735.000
831.823.347
826.340.000
606.937.000
445.330.608
404.611.445
280.511.000
286.476.781
261.308.480
200.879.613
176.977.193
158.624.350
176.662.324

CHANGE
2008/2007%

TURNOVER 2008

LD SA
SHELL HELLAS SA
BP HELLAS SA
MAMIDOIL-JETOIL SA
EGION OIL SA
AVIN OIL SA
LL SA
REVOIL SA
SA
CYCLON HELLAS SA
SILK OIL SA
ERMIS SA
MYRTEA SA
ELPETROL SA
KAOIL KOUTLA BROS LLC
DRACOIL SA
SEKA SHIP FUEL SUPPLY
STATIONS SA
SEKAVIN FUEL SUPPLY
STATIONS SA
SUNOIL SA
GALLON OIL SA
MOBIL OIL HELLAS SA
KMOIL SA
ARGO GREEK PETROLEUM
PRODUCTS COMPANY SA
DIMOIL SA

TURNOVER 2007

COMPANY NAME

Table 4: Key figures of 70 petroleum market companies, 2007-2008 (Sums in Euros)

4.705.235

5.142.427

11.493.209

11.987.361

2,44

2,33

2.135.167
2.079.686
28.178

2.598.481
2.420.918
128.764

33.997.078
16.279.832
2.591.511

46.229.452
20.752.885
6.668.534

15,92
7,83
91,97

17,79
8,57
51,79

1.070.491

672.449

17.011.419

21.134.003

15,89

31,43

2.906.073
3.691.584

2.957.488
3.670.193

20.325.599
6.690.467

28.440.701
7.385.090

6,99
1,81

9,62
2,01

ATLANTIS SA

26.544.954

32.026.391

20,6%

280.014

285.113

1,8

0,89%

4.412.821

4.426.814

12.996.765

13.082.264

2,95

2,96

LIOMAS SOT. SA '' PETROHEAT ''

26.622.755

25.393.965

-4,6%

-324.406

70.163

0,28%

-85.451

374.712

3.353.950

6.872.028

-39,25

18,34

ATHENS OIL SA

18.837.796

23.876.819

26,7%

259.986

272.941

5,0

1,14%

921.143

1.065.725

8.349.528

6.706.728

9,06

6,29

AL OIL LLC

14.618.612

20.612.920

41,0%

153.680

592.936

285,8

2,88%

-659.158

-135.950

3.059.614

2.912.578

-4,64

-21,42

DIMKA SA

15.073.464

19.348.704

28,4%

1.718.086

2.002.642

16,6

10,35%

2.338.246

3.062.122

9.220.593

10.524.238

3,94

3,44

TOTAL HELLAS SA

17.142.545

18.598.722

8,5%

3.026.446

2.642.092

-12,7

14,21%

1.314.328

1.314.328

6.472.894

5.995.702

4,92

4,56

ALIAGAS SA

13.117.497

17.683.837

34,8%

49.291

57.777

17,2

0,33%

1.378.795

1.365.409

8.865.595

13.485.502

6,43

9,88

1.263.214

16.763.383

1227,0%

-59.567

235.121

1,40%

-14.609

231.151

412.330

3.051.917

-28,22

13,20

CABI GAS SA

13.151.186

16.174.860

23,0%

129.210

195.194

51,1

1,21%

1.534.799

2.066.187

7.808.349

8.422.958

5,09

4,08

APIROTAN SA

9.236.484

13.773.223

49,1%

-173.201

318.071

2,31%

2.458.451

2.556.928

7.326.351

9.165.970

2,98

3,58

THESSALIKA PETRELEA SA

9.750.355

13.113.858

34,5%

139.044

199.139

43,2

1,52%

781.518

394.481

885.281

4.425.063

1,13

11,22

CHEVRON HELLAS SA

26.750.698

11.763.612

-56,0%

-1.626.271

34.069

0,29%

14.798.955

14.833.025

2.857.420

1.944.013

0,19

0,13

SHELL HELLAS LLC

10.317.656

10.650.437

3,2%

199.899

265.357

32,8

2,49%

292.638

302.843

768.858

694.180

2,63

2,29

PYRSOS SA PETROLEUM

7.879.534

8.925.136

13,3%

17.249

9.435

-45,3

0,11%

226.390

276.016

790.710

605.407

3,49

2,19

INTERNATIONAL SERVICE SA

8.755.068

8.845.655

1,0%

1.026.465

1.037.727

1,1

11,73%

2.239.221

2.278.628

2.159.690

2.111.424

0,96

0,93

12.014.374

8.759.200

-27,1%

44.837

84.544

88,6

0,97%

324.169

327.378

748.285

339.145

2,31

1,04

JEMOIL SA

7.198.741

8.673.678

20,5%

42.332

29.489

-30,3

0,34%

281.256

291.338

1.310.511

1.119.323

4,66

3,84

EUROTHERM SA

2.783.289

8.466.828

204,2%

6.601

40.632

515,5

0,48%

146.276

186.908

345.448

1.221.334

2,36

6,53

TRIGON GAS SA

6.680.117

8.445.495

26,4%

142.816

339.437

137,7

4,02%

972.119

948.225

3.727.668

4.032.607

3,83

4,25

ATHEA SA

4.407.255

8.256.428

87,3%

73.594

204.240

177,5

2,47%

2.672.033

2.701.211

3.333.166

4.061.633

1,25

1,50

RIZOUDIS GEORGIOS SA

6.760.813

7.935.276

17,4%

-440.199

-105.533

76,0

-1,33%

519.875

412.461

3.572.565

3.112.395

6,87

7,55

KOUTSOBOS ELASTIKSA SA

7.423.848

7.857.970

5,8%

12.928

2.436

-81,2

0,03%

352.714

353.932

8.346.949

9.138.774

23,66

25,82

BIEM AUSTRIA OIL SA

6.450.818

7.333.158

13,7%

329.420

130.441

-60,4

1,78%

2.861.539

3.746.420

5.704.272

7.438.641

1,99

1,99

KASIMATIS I. SA

7.908.169

7.197.437

-9,0%

54.373

13.016

-76,1

0,18%

300.412

304.769

4.501.559

4.547.631

14,98

14,92

CHALAZIA A. SA

6.430.327

6.456.739

0,4%

11.279

12.589

11,6

0,19%

534.676

566.893

1.664.501

2.254.831

3,11

3,98

KAKLAMANOS ANASTASIOS LLC

4.721.352

5.932.730

25,7%

34.843

-92.029

-1,55%

203.955

180.838

2.308.950

2.776.179

11,32

15,35

ASROPYRGAZ SA

5.364.474

5.877.151

9,6%

272.752

282.641

3,6

4,81%

1.218.490

1.353.705

1.468.862

1.393.484

1,21

1,03

KOTOULAS BROS SA

3.889.740

5.694.253

46,4%

7.000

59.110

744,4

1,04%

865.250

1.069.805

1.038.271

1.479.391

1,20

1,38

SAVVIDIS SA

4.621.329

4.878.681

5,6%

83.672

49.086

-41,3

1,01%

581.790

728.049

2.131.838

2.413.676

3,66

3,32

AKOIL SA

3.846.014

4.667.458

21,4%

5.271

11.486

117,9

0,25%

1.432.710

1.882.188

2.465.021

2.654.260

1,72

1,41

FUCHS HELLAS LLC

5.143.203

4.596.766

-10,6%

343.690

147.506

-57,1

3,21%

1.231.911

1.276.109

4.593.781

3.608.082

3,73

2,83

AEXANDROS OIL LLC

5.803.386

4.575.080

-21,2%

-430.307

-345.811

19,6

-7,56%

-130.691

-496.117

2.024.815

1.929.019

-15,49

-3,89

ALEXANDRATOS D. & SONS SA

3.742.352

3.960.629

5,8%

92.763

60.875

-34,4

1,54%

496.097

499.141

543.891

689.618

1,10

1,38

SIMOUDIS SA LIQUID VEHICLE FUELS

2.677.939

2.900.202

8,3%

-23.957

45.037

1,55%

35.401

110.339

723.441

553.443

20,44

5,02

AKRITAS SA

2.221.313

2.552.334

14,9%

98.865

75.283

-23,9

2,95%

191.881

323.829

419.808

344.763

2,19

1,06

SIDERIDIS E. SA

2.838.215

2.322.966

-18,2%

-95.159

-116.097

-22,0

-5,00%

157.750

109.956

790.168

463.933

5,01

4,22

THERMOIL PATRAS SA
IOANNIDIS PETROLEUM PRODUCTS INTER
OIL SA

1.556.525

2.251.376

44,6%

7.851

11.215

42,9

0,50%

28.890

37.031

365.350

300.213

12,65

8,11

2.178.568

2.094.197

-3,9%

19.620

-33.378

233.924

200.545

520.352

608.385

2,22

3,03

21.300.523

1.209.339

-94,3%

520.937

24.910

-95,2

666.490

685.173

3.956.848

1.689.634

5,94

2,47

PETRELEA LAVRIOU SA

PETROSTAR SA

ARETAKIS E. LLC
Source: STAT BANK

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

-1,59%
2,06%

15

2.3.6

PROBLEMS, OPPORTUNITIES AND RECENT DEVELOPMENTS

Problems: The major problems in the Greek petroleum market, which


exist throughout the entire supply chain, are as follows:
A. A pronounced bureaucracy in the customs procedures with a limited
degree of automation. For example, the compulsory physical presence
of a customs officer during the customs clearance of petroleum
products from the refineries in the domestic market restricts the
capacity for re-supply at times outside normal public service hours.
B. A distortion in the market due to the noted smuggling, piracy or
falsification and tax avoidance, which annually deprives the Greek
State of 400 million in income.
C. A slight potential to minimise the supply cost due to the restriction on
the issue of new motor vehicle licenses for tankers, the obligation on
petroleum companies to retain a large number of tankers separately
for each type of fuel and finally the specification of transportation
charges on public use tankers by the State.
D. A lack of town planning design as well as reactions by local
communities regarding the establishment of new storage areas for
petroleum products.
Potential: In forthcoming years the environmental factor is expected to
play a decisive role in the E.U. with the commercial emissions trading
system, the specifications for Nitrogen Monoxide emissions, the institution
of specific areas for sulphur oxides and other burdensome measures for
industry and transportation that pollute the atmosphere. Nevertheless,
the slow introduction and the slow pace in the importation of new
technology for transportation (hybrid and electrically powered vehicles) in
the medium term retain the dependence upon fossil fuels. Furthermore,
the introduction of natural gas and Renewable Sources of Energy in
industry and domestic consumption is being rapidly realized, which
threatens fossil fuels in the medium to long term future, while the above
categories correspond to approximately 1/3 of the total consumption of
petroleum products as opposed to 55% for transportation. As it was
stressed by the (Institute for Economic & Industrial Research)
report, the petroleum products market exhibits positive development
potential in the forthcoming years but at a lower rate of growth in relation
to previous years. The replacement of petroleum products by other forms
of energy, such as natural gas, will be realized at a relatively slow pace,
which is a result of a lack of incentives and the high capital investment
that is required by both households and industry, whereby in the next
two decades petroleum products will hold a dominating role in the
domestic energy market.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

16

There are significant opportunities in the development of 2nd generation


bio-fuels, the competitive development of a network of service stations,
quality control and activity in the Eastern European and Balkan markets.
Business developments: In addition to the above and in relation to
developments at a business level unit, the vertical drop of profitability for
businesses in conjunction with the tightening of payment terms (credit
limits and settlement terms) by Hellenic Petroleum and Motor Oil has led
to rapid changes in the domestic fuels market. Many companies are
following a pronounced negative course in the market after the closure of
El Petrol.
The recent agreement for the take over of the BP service stations network
by Hellenic Petroleum and the sale of the Shell network to Motor Oil has
been decisive on the new landscape being created in the domestic fuel
market. The above are decisive factors for the redistribution of the
correlations in the fuel market. Of course, the withdrawal by the multinationals in stages has undoubtedly created a negative climate in the
Greek economy and does not exclude the support for monopolies in the
domestic market.
Legislative Framework: It is being sought to supplement the existing
institutional framework that regulates the petroleum products market in
relation to the legislative framework, following the recent changes to the
Ministry for Development, in order to intensify control at all stages of the
market and to improve market operating supervision. The smooth
operation of the petroleum products market and healthy competition will
be achieved in this way, as well as consumer protection, since there will
be greater transparency and control, in accordance with the Ministrys
relevant announcement.
It is also stressed the measures being adopted are based both on the
Ministrys experience of the markets operation, and the relevant
recommendations submitted by the Competition Committee for the
petroleum products market. Specifically:
- To compulsorily install cash registers (electronic tax devices) at liquid
fuel service stations within 6 months from the passing of the amendment.
These devices will be connected to the integrated inflow outflow control
system. This will ensure that the transparency rules for transactions are
observed and will ultimately provide better protection to the consumer.
- To also support the Fuel Distribution and Storage Department (KEDAK)
with the responsibility for costing control. KEDAK, in addition to
monitoring the permit for facilities and the establishment of companies
active at all stages of petroleum products trading and the type and
quality of fuels, will also be able to conduct inspections on the purchase

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

17

and sale prices per fuel type and the subsidies provided and be
accordingly informed about cases of profiteering.
- The capacity is provided for the first time to KEDAK to temporarily seal
facilities at all stages of the petroleum products market, where violations
are detected regarding the type and quality of traded products (fraud).
- A central Information Monitoring System has been developed at the
Ministry for Development for controls and sanctions imposed by different
authorities at all stages of the petroleum products market by sector of
responsibility.
- A uniform National Register of Permits has been developed at the
Ministry for Development for permits granted at all stages of the
petroleum products market supply chain. All the permits that to date
have been entered on separate registers will be gathered at the Register,
such as refinery permits, distribution of bio-fuels, trading, retail trading,
transportation by petroleum products pipeline and bottling of liquid
gasses.
- A Committee for Monitoring the Petroleum Products Market has been
instituted, with the participation of all authorities and social partners
involved, as a consultative committee for measures in the petroleum
products sector, whose opinion will not be binding on the State.
- The capacity for access to existing infra-structure by third parties is
provided, in line with what already applies for access to petroleum
pipelines. Specifically, due to the difficulty in developing new infrastructure in certain regions of the country, such as island regions, the
Energy regulating Authority will examine the capacity for access by a
company to the infra-structure of another company, e.g. to reserves of
operational reserves. This policy is already being implemented in other
member states of the E.U., and contributes to an improvement of
competition conditions in a region, a price reduction, and accordingly
complete consumer protection.
It is noted that further to a resolution by the Ministry for Development
the capacity for the operation of automatic vendors at liquid fuel service
stations outside normal operating hours has already been instituted since
June 2009.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

18

3 BACKGROUND AND CURRENT STATE


3.1 THE COMPANY: BACKGROUND OBJECTIVE OF
WORKS
The company was established as an individual business in 1988 with the
main aim being to service petroleum product consumers at competitive
prices with immediate service on a 24-hour basis. It now trades as
DIMOIL PETROLEUM PRODUCTS INDUSTRIAL TRADING COMPANY and
the distinct title DIMOIL S.A.
The company was incorporated in its present form in 1996 with S.A.
Registration No: 33490/22//96/25 and Tax File No: 094365627 at the
Patra II IRS and based at the Patra Industrial Region and is active in
petroleum products with its main objective being the trading and
distribution of petroleum products, LPG and hot asphalt.
The companys particulars are synoptically presented below, in relation to
its trading name, legal structure, headquarters, aim and share capital.
TRADING NAME

LEGAL STRUCTURE
HEADQUARTERS
AIM

:
:
:

CAPITAL

DIMOIL S.A.
DIMOIL
Petroleum Products Industrial
Trading Company
Societe Anonyme
Theriano, Patra VI.PE (Industrial Zone)
The (wholesale & retail) trading in all types
of petroleum products, oils, asphalt and LPG,
and the import and export of the above
traded products.
The
Companys
share
capital
is

2,931,066.00 and is divided into 99,900


shares at 29.34 each. The major
shareholder is Mr. Nikolaos Dimos (99%)
and Mrs. Eugenia Dimou (1%).

3.2 FACILITIES
The Company is based at Theriano in the Vrahneika Municipality, close to
the Patra VI.PE (Industrial Region), on a private area of 7.2 hectares. The
area houses buildings and storage areas and areas for the Companys resupply, with the modern equipment expected at petroleum product
facilities. The facilities comply with all the safety regulations and
specifications in accordance with E.U. directives and international
requirements, together with a respect for the natural environment.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

19

More specifically, at the Theriano Patra facilities, in addition to the


buildings that house the offices and technical services, there are storage
reservoirs with a total capacity of 9,804 3 as follows:
1.
2.
3.
4.
5.
6.

Asphalt Reservoirs
Diesel Reservoirs
Vehicle DIESEL Reservoirs
Heating DIESEL Reservoirs
Petrol Reservoirs
LPG Reservoirs

2,084 3
2,255 3
1,187 3
1,187 3
2,561 3
530 3

There are also lubricant storage areas with a total surface area of 900 m 2.
In addition to the Theriano facilities, the company has secured since
23/12/2008 a permit to establish a plant for the production of bio-fuel
(bio-diesel) with a capacity of 150 tonnes / day.
In addition to the above, in 2001 the Company purchased a seaside
property of 27.5 hectares at Astakos Aetoloakarnania, at the Platygiali Ag.
Panteleimonas location. In 2008 it completed, the construction of
petroleum products facilities with a pipeline supply to the facilities via a
pipeline from the sea by ship. This property, in addition to being a seaside
property, is beautiful and with access to the Astakos Port. The natural
position of the said property provides the ideal conditions for the
constructions of facilities for the re-supply, storage, and distribution of
petroleum products.
These new facilities are a plant for the storage and distribution of asphalt,
diesel, fuel oil and petrol, with a storage capacity of 20,347.20 m 3 and
are comprised of:
Diesel storage Reservoir;
Asphalt storage Reservoir;
Fuel oil storage Reservoir; and
Petrol storage Reservoir.
The developed surface area of the property is 18,819.13 m 2 on a 6
hectares property. The building facilities include sheds, base platforms for
the product storage reservoirs, a weighbridge, waste processing
reservoirs and buildings (office building, entry guard post, pump station
buildings, boiler, workshop, tanker filling depot and fire extinguishment
facilities).
It must be noted that these are the only facilities in Western Greece.
The company, inter alia, has a privately owned fleet of 18 tanker trucks
for the distribution of its merchandise. It has also concluded agreements
with Public Use tanker trucks for the same purpose.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

20

3.3 MANPOWER
The company currently operates with a suitable manpower of 35
employees (Administration 3 people, Financial Services 4 people,
Distribution / Trade 20 people and Workers Technicians 8 people)
with specific knowledge of the objective and with faith in the companys
principles and philosophy that are responsible for the final result, the due
and direct servicing of customers and the complete coverage of the
demands by the companys creditors and suppliers for the future.
The company is in the process of sourcing competent personnel for the
staffing of the new facilities at Astakos Port plant.
The following table presents particulars relating to the staffing of the
companys management positions.
CHAIRMAN
:
Mr. Nikolaos Dimos
CEO & GENERAL MANAGER

Mr. Ioannis Dimos

COMMERCIAL MANAGER

Mr. Spiros Dimos

FCO

Mr. Nikolaos Potamianos

ACCOUNTANT

Mrs. Lambrini Koletsi

MAJOR SUPPLIERS AND CUSTOMERS


The facilities are supplied by the refineries of the MOTOR OIL company
at Corinth and the State Refineries of HELLENIC PETROLEUM - ELPE at
Aspropyrgos via the above-mentioned transportation means. The two
above-mentioned companies are the Companys main suppliers.
Alternative, equally significant suppliers are SHELL S.A. and AVIN LTD
At the other end of the supply chain are the companys customers that
are classified under the following categories:
Technical Companies;
Public Works Contractors;
Hospitals Public Buildings;
Heating Diesel Re-sellers;
Industry;
Factories; and
Transportation Companies.
We indicatively refer: KOLOVO ANASTASIO, DOXA S.A., ATLAS
TEHNIKI S.A., ATLAS S.A., THERMOIL PATRAS S.A., S.P. FRANGOS
S.A., NIREAS S.A. and the WESTERN GREECE HOSPITALS.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

21

22

3.4 SUMMARY OF PAST FINANCIAL DATA


Table 5 presents the key figures and the main financial ratios for the
company DIMOIL during 2005-2008.
Table 5

2005

2006

2007

2008

32.049.080,44
3.515.610,20

40.671.563,11
4.462.582,92

39.616.909,15
3.977.825,00

55.943.901,97
5.171.141,37

2.522.981,32
992.628,88
218.031,13

3.151.758,00
1.315.284,33
98.792,51

3.098.735,78
879.390,22
-457.794,67

3.207.114,35
1.964.027,02
23.422,15

24.821.025,35
2.992.110,52
1.821.856,51

32.991.284,15
2.993.887,22
1.839.528,51

36.132.245,31
2.135.166,59
2.075.639,07

48.827.933,23
2.598.481,23
5.127.417,65

1,07

1,04

1,02

1,04

1,02

1,01

0,98

0,99

244,12
2,72

246,82
5,30

275,62
8,76

256,12
2,26

83,02
1,29
17,59

70,74
1,23
22,11

106,10
1,10
19,09

95,63
1,15
10,91

KEY FIGURES
Turnover
Gross profit
Operating Expenses
EBITDA
Net profit (before taxes)
Assets
Own funds
Net Fixed Assets
LIQUIDITY INDICATORS
Current Assets /Current Liabilities
(Cash in hand +Requirements) / Current
Liabilities
ACTIVITY INDICATORS
Days receivable
Days stock
Days credit
Speed of converting current assets into cash
Speed of converting fixed assets into cash
PERFORMANCE INDICATORS
Gross Profit / Turnover

10,97%

10,97%

10,04%

9,24%

EBITDA / Turnover
Net profit before taxes / Turnover

3,10%
0,68%

3,23%
0,24%

2,22%
-1,16%

3,51%
0,04%

Own fund performance

7,29%

3,30%

-21,44%

0,90%

(Cost of sales + Oper. expenses) / Turnover


Oper. expenses / Turnover

96,90%
7,87%

96,78%
7,75%

97,78%
7,82%

96,49%
5,73%

CAPITAL STRUCTURE INDICATORS


Loan equity ratio

7,28

9,97

15,80

17,79

Own funds / Net Fixed Assets

1,64

1,63

1,03

0,51

OPERATING EXPENSES INDICATORS

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

23
ANALYSIS OF TABLE 5

. KEY FINANCIAL FIGURES


1. Turnover: The turnover of the group showed an average annual
increase of 22%, but fluctuates, as in 2006 and 2008 it increased
significantly, while in 2007 it marked a slight decline. We note that the
drop in 2007 was a direct result of the turmoil in world market prices
of petroleum products, while in 2008 the dynamics of the company
enabled it to recover from the distress of the previous year and
achieve a strong increase in turnover.
2. Gross Profit: The gross profit of the company follows the behaviour of
turnover. In absolute terms, it amounted to 5.2 million in 2008,
compared to 3.5 million in 2005.
3. Operating costs (Administrative operation Expenses and Distribution
Costs): In absolute terms, operating expenses amounted to 3.2
million in 2008 compared to 2.5 million in 2005, recording a
conservative increase of 27% in four years.
4. EBITDA: The companys EBITDA follows the behaviour of turnover,
while in 2008 it increased by over 100%, much higher than the
corresponding increase in turnover, mainly due to lower operating
costs despite the reduction in the gross profit margin.
5. Net income: Net income has remained relatively stable in absolute
terms over the four years, except in 2007 when the company recorded
losses, mainly because of falling sales and the reduction in the gross
profit margin.
6. Assets: Assets doubled within four years, amounting to 48 million in
2008, compared with 24 million in 2005.
7. Own funds: Own funds have remained relatively stable throughout
the four years, with a slight decrease observed is due to the losses of
2007.
8. Net Assets: The Net Assets of the Group increased by approximately
3 million within four years due to the partial integration in its Fixed
assets of the investment in Astakos. The main increase is recorded in
2008.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

24

. LIQUIDITY
a. General Liquidity: The general liquidity ratio remains at levels
marginally above the unit throughout the period of four years, and is 1.04
on average.
b. Direct Liquidity: The direct liquidity ratio is similar to the general
liquidity ratio, as the company stores few goods. It amounts on average
to 1 throughout the four years.

C. ACTIVITY
a. Creditors - Requirements: As a four-year average, creditor days
stand at 89 days, while days receivable at about 256, which in
combination shows an imbalance between the companys credit and
lending policy.
b. Stocks: The days for which stock is held by the company amount to 5
on average over the four years, showing a relatively stable course in all
years.
c. Circulation Speed of Assets and Fixed Assets: The Circulation
Speed of Assets and Fixed Assets is 1.2 on average, remaining at levels
above the unit in all years, although marking a slight decrease over the
last two years. The four-year average Circulation Speed of Assets and
Fixed Assets is 17.4, reduced significantly in 2008.

D. PERFORMANCE
a. Gross Profit Margin (GPM): The four-year average gross margin
stands at 10.3%, in line with the framework of the oil industry behaviour,
descends, and in 2008 amounts to 9.2% compared with 11% in 2005.
b. EBITDA / Sales: The mean index is 3%, while in 2008 it is the
highest in four years (3.5%), mainly due to lower operating expenses of
the company.
c. Net Profit Margin (NPM): The net profit for the group decreases over
the years, assuming a negative value in 2007.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

d. Return on Equity: The companys returns on equity have been low


throughout the four years and in 2008 stood at 0.9%.

. OPERATING EXPENSES
Operating expenses as a percentage of sales amounted to 7.3% on
average four years, but dropped sharply in 2008, to 5.7%.
As a four-year average, the index (Cost of sales + Oper. Expenses) /
Sales, is around 97%. It has remained relatively stable throughout the
four years.

F. CAPITAL STRUCTURE
a. Loan Equity Ratio: The loan equity ratio has increased over the years
and in 2008 is remarkably high, at around 18/1, while the four-year
average is 12.7/1.
b. Own funds / Net Assets: The index has decreased over the years,
due to the increase of fixed assets and the relatively stable values of
equity. The four-year average is 1.2/1.
The main comments drawn from the examination of the above financial
information, considering the corresponding figures of other companies in
the oil market as discussed in section 2.3.5, are summarized as follows:
1. Regarding sales, the company has grown, with high growth rates,
in line with average market behaviour. For example, in four years,
the company reported an average annual growth rate of 22%, in
line with the markets development in 2008.
2. Regarding performance, the companys gross profit margin is
consistent with the relevant industry performance. Typically, the oil
industry has the lowest gross profit margin of all other branches of
trade, close to 9.5%-10%. The companys performance over the
past four years was within the aforementioned framework.
3. Regarding profitability, we observe that the cumulative net profit
of the company during the four years is zero, despite the fact that
in these four years its cumulative turnover was approximately
170 million. This outcome, noted in most companies in the industry,
is exacerbated by the companys high financial costs from interest
on borrowed funds, in addition to the low gross profit margin, as
interest costs are on average about 3.3% of sales.
4. Regarding liquidity, the observed imbalance between the
companys credit and lending policy impedes its liquidity as the

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25

company receives client requirements after an average of 250 days


and pays its suppliers in approximately three months.
5. Regarding its capital structure, the companys loan equity ratio is
very high, much higher than the market average, which indicates
that the company is undercapitalised to achieve this sales volume.
6. Finally, it is noteworthy that the remarkable EBITDA change rate in
2008, to a percentage much higher than the change in sales,
mainly because of falling overheads, may suggest an
underemployment problem in previous years.

3.5 LATEST DEVELOPMENTS CURRENT STATE


On April 2010, its related company the OSELINER company, in its
capacity as the service provider for the distribution of petroleum products,
waste management and slops reception, signed a contract with the
ASTAKOS TERMINAL and AKARPORT companies, where the former owned
and utilised the land area and the ASTAKOS NAVIPE Port Facilities, and
the latter managed and administered the Port, as this had been assigned
to it by the ASTAKOS TERMINAL. The subject of the contract is as follows:
1. AKARPORT assigned to OSELINER the jobs for the removal of the
liquid waste from the ships that sail into the Port and its
transportation to the temporary storage holding tanks. In this
regard, OSELINER will receive 85% in respect of each recorded
invoice from AKARPORT.
2. AKARPORT permits OSELINER to resupply the ships that sail into
Astakos Port with shipping fuel. In this regard, OSELINER will
reimburse 2 / metric tonne of fuel to AKARPORT.
3. AKARPORT permits OSELINER to load and unload and transport
petroleum products through the Port from the ships that sail into it,
to the DIMOIL facilities and vice-versa. In this regard, OSELINER
will reimburse AKARPORT with 0.25 / tonne petroleum products
handled in the first year and 0.30 in the second year, while for
subsequent years the charge will be increased based on the
average annual rate of inflation.
In relation to the above, a connection is required of the DIMOIL storage
and petroleum products distribution facilities adjacent to ASTAKOS
NAVIPE with the Port, via three steel pipelines, which shall pass through
ASTAKOS NAVIPE. The transit right for the pipelines is assigned to
OSELINER by the ASTAKOS TERMINAL in consideration of the sum of
60,000 in the first year, 80,000 in the second year, while for

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26

subsequent years the charge will be increased based on the average


annual rate of inflation.

3.6 OBSERVATIONS - CONCLUSIONS


After recording and analyzing the external and internal environment of
the company, both in terms of economics and level of organization and
operation, the resulting conclusions are summarized in Table 6, in the
form of a SWOT analysis.
Table 6: S.W.O.T. Analysis DIMOIL SA
Strengths
Development of the new plant in
Astakos Port, to increase sales and
reduce transport cost accounting
Location: Covers the needs of Western,
Central Greece, and the Ionian Islands
can reach Northern Greece.
Community directives on green growth
and NATURA protected zones
Opportunities
Extensive dependence of the Greek
market on oil in the coming decades
Development of 2nd generation
biofuels
Development in the markets of the
Balkans, Eastern Europe and SE Italy

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

Weaknesses
High loan equity ratio
Undercapitalised company
Imbalance between credit and
lending policy

Threats
Depression due to the financial
crisis
Market fragmentation
Problematic and incomplete
regulatory framework

27

4 METHODOLOGY
The methodology of this study is first to detect the trends/forces of inertia
of the company and the oil market, and to identify the strategic
objectives in a manner reflecting the expected benefits and feasibility of
the project.
In particular, the forces of inertia, expressed through the behavioural
indicators of the company and the industry (growth, loan equity ratio,
gross profit margin, profitability) constitute the basis for calculating the
feasibility of strategic objectives - e.g. operation of the company new
plant, and the cost and time required for the changes these entail.
Given the above, a six-year forecast scenario is made, under the
assumptions mentioned in Section 6.
We subsequently take into account market trends and competition, as
well as the exploitation of companys new investment in Astakos. Thus,
two consistency checks will be conducted:
A. Consistency check compared with the past of the company.
B. Consistency check compared with competition.
Given two above consistency checks, strategic objectives will be set, to
form the basis of the Companys corresponding five-year business plan.

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5 STRATEGY
The incorporation of the Greek economy into the European Union and
more broadly into the globalisation framework has necessarily compelled
it to inter alia proceed to: its institutional adaptation, namely to
restructure, modernise and reorganise the size, operating level and
orientation of its business units. In this case, it is of crucial significance to
rationalise companies in terms of the particulars in their assets and
liabilities together with the corresponding restructuring, to reorganise
their size and business direction through mergers, take-overs and more
generally through business alliances and to finally to modernise their
activities and operations within the uniform European market.
The medium sized units and more specifically the regional units have
been dramatically slow in this reorganization process, which is supported
by the fact that these businesses have a noteworthy lack of direction in
the activities and the necessary strengths. This is of exceptional
significance, since the above reorganization ultimately relates to the
structural change of the individual markets. In other words, medium sized
businesses, and of course with lesser emphasis, large businesses, will
close, be sold or will merge, but will definitely modernise.
The implementation of the above into the petroleum market in Greece is
evident. The market, which is fragmented by both the size and the
objective of the businesses, as stressed in chapter 2.3, has recently
undergone significant re-arrangement in terms of its structure and
operation. This re-arrangement relates to a change in the market
equilibrium through the absorption of the BP network by ELPE, the closure
of El Petrol, the agreement for the purchase of the Shell network by
Motor Oil, together with a vertical drop in the profitability by businesses
in the sector that has been observed in the last year, a fact that has led
to significant problems for a large number of companies. It is reasonable
that concentrating trends will be observed in the market through a
composition of the above elements, by the creation of larger units
through take-overs and mergers.
DIMOIL has invested in new petroleum storage and distribution facilities
at Astakos Port Plant in Aetoloakarnania, in light of the above
developments, to exploit the potential provided by the above facilities for
developing its sales and drastically reducing its operating costs. The
investment will significantly strengthen the companys position in the
geographical market of Central and Western Greece and create a channel
to develop new markets, in terms of geography (Northern Greece) and

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29

products, by also providing the potential to attain economies of scale and


to reduce its transportation costs.
On the basis of the above regarding the market trends and possibilities,
the competition forces, the operating and financial background, and the
current state of the DIMOIL company, the following new strategic
directions for its operation have been set out:
A. A rapid increase in the sales through an enlargement of the clientele
and activity in new product and geographical markets, as a result of the
operation of the new Astakos Port facilities.
B. A more efficient management of the transportation cost for the
products through the utilization of the potential provided by the new
Astakos Port facilities.
C. An improvement in its cash flow, through the corresponding variations
of the credit policy to the companys customers, with a significant
reduction to the average period for the collection of debts, through a
change in the product mix and the clientele dispersal as a result of the
new investment in Astakos Port.
D. A change to natural levels in the relation of foreign to the own capital.
E. The utilization of the new Astakos Port facilities with real estate income
through the rental of storage space to third parties.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

30

6 FINANCIAL MODEL ASSUMPTIONS


The financial model is a financial display with the above strategy based on
underlying assumptions that have been drawn in collaboration with the
Companys management and are presented below.

6.1 2009 BALANCE SHEET ADJUSTMENTS


In collaboration with the Companys management, adjustments have
been made to the Balance Sheet of the year 2009, concerning the
regularization of the accounting of the investment in Astakos Port. These
adjustments are as follows:
Interim Assets 2009
Fixed: 13,29
Requirements: 21,41
Stocks: 0,20
Cash in hand: 0
Other: 1,31
TOTAL: 36,21

Interim Liabilities 2009


Net position: 1,87
Long-term loans: 5,43
Current loans: 16,20
Suppliers: 11,01
Other: 1,70
TOTAL: 36,21

The adjustments concern the regularization of the accounting of the


investment in Astakos Port, through the consolidation of part of the
investment that had not been included in the companys Fixed Assets,
leading to an upwards distortion of cash in hand.

6.2 RESULTS 2010-2014


1. The companys turnover in 2009 amounted to 45,5 million decreased
by 20% compared with 2008, consistent with the companys policy of
adjusting its turnover to lower levels to avoid the risk of exposure to
bad customers (the company has already absorbed 6 million of bad
customers in 2009), but also due to the general negative economic
climate and the loss recorded by the market as a whole because of the
economic crisis. After the establishment of the new facility in Astakos
Port, the company's turnover grows at a rapid pace.
The increase in turnover to these levels is supported by:
a. the broadening of the companys client base, as through the
operation of the above facility, the company may receive licenses for
operation in three new product categories, maritime fuel, petrol and
wastewater management. Specifically:

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31

- Maritime Fuel: the company can immediately acquire a market


share from the vessels operating in the ports of Patras, Igoumenitsa,
Kyllini, Mesolonghi Egio and Katakolo. Later, the company will be able
to add to its operations the ports of Piraeus, Rafina, Corinth, etc. The
company is already in contact with several ship owners who wish to
cooperate. In addition, the company is able to support already
provided shipping volumes through the loading of fuel to ships calling
at the port of Astakos, based on the above contract (see Section 3.6).
Annual volumes for this activity can amount to 180,000 tons of fuel.
- Gas Stations: the company can immediately acquire a market share
from independent gas stations, and create a private network. An
advantage is that the company already owns car tankers that can
manage the supply to gas stations at significantly lower transport costs.
- Wastewater Management: On the basis of a signed contract,
presented in section 3.6, the company expects an annual revenue of
around 1,3 million, with a significantly higher gross profit margin
than other product categories (22% compared with 11 %).
b. the expansion of business into new geographic markets, including
northern Greece, taking advantage of competitive prices and volumes
to distribute its goods. Already, the company's management has
proceeded to negotiations with specific customers and partners, with
positive prospects.
c. the broadening of partnerships with other oil companies that have
expressed interest to buy fuel from the company or rent storage
premises (the company will tranship fuel to other companies through
the Astakos facility, from the goods stored there, as a consignment,
and will receive the corresponding fee for these through-put
operations). All trading companies such as SHELL HELLAS SA, AVIN
OIL ABENEP, SILK OIL, AEGION OIL (AEGEAN), REVOIL, in western
Greece cover approximately 70% of gas station supplies. This supply is
performed by road tankers that load fuel from refineries in Athens, so
that transport costs are very high, the risk for the road tankers on the
road is high and the date and time of delivery to the customer is
always late. The means of transport used by each company at this
time may be halved if they serve their customers in western Greece
from the Astakos facility, so all these companies have expressed keen
interest in using the companys Astakos facility immediately after its
establishment. This means that for every cubic meter of loading, the
loading fees paid to the company will be about 14 per m3, with the

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32

associated cost amounting to 7 per m3. Given that the overall


market in which the company operates is worth approximately
500.000 m3 per year and the company aims to cover 60% of this
market, the companys annual income will amount to 4.2 million.
Specifically, the projected sales by product group for the years 20102014 are as follows:
In thousands
SALES

Maritime
Diesel
Heating
Petrol
Fuel oil
Asphalt
Liquid gas
Waste
Through-Put

2012
11.420
20.145
21.100
14.250
10.980
12.170
3.199
1.275
4.631
99.169

2013
12.980
24.600
25.140
17.100
14.770
15.740
3.583
1.275
4.862
120.050

2014
15.060
28.950
31.360
20.870
18.960
19.910
4.012
1.275
5.105
145.503

It is noted that for 2012 in specific, the company aims to increase its
turnover from activities that generate higher liquidity through the
shorter-term recovery of the generated requirements (e.g. diesel) and
has correspondingly decreased activities with a longer period of
recovery of the generated requirements (e.g. Fuel oil and asphalt).
It should be noted that these sales forecasts are formed taking into
account the current oil prices and with reasonable assurance that
these prices will not undergo significant changes until the end of 2012.
Below, we see the forecast values and quantities for each company
product in 2012.
CATEGORY
PRICE ()
QUANTITY (m3 )

Fuel
825
18.570

Heating
545
28.771

2012
Petrol
870
7.356

Fuel oil
293
26.109

Asphalt
247
35.628

Liquid gas
365
6.986

2. The gross profit margin stands at approximately 14% for the years
2012-2014, increased if compared to the companys past and the
competition. The increase in the gross profit margin is possible thanks
to the reduction of cost accounting for the transport of the companys
products during its new operation after the commencement of
investment. At its existing facilities, in the Industrial Area of Patras,
the company is far from the sea and all deliveries of goods take place
by road tankers. With the operation of the Astakos Port facility, the

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33

company will be able to receive supplies by sea, thus reducing costs.


For example, the region consumes about 800,000 tons annually. 70%
of this fuel is transported by land from the refineries of Aspropyrgos
and Corinth with transportation costs of 50.00 per tonne.
Transportation from the Companys Astakos facility will cost 25.00
per tonne. The benefits achieved from Transportation alone therefore
are great. In addition, the possibility to receive supplies by sea will
give the company the advantage of an economy of scale. Buying larger
quantities, the Company can negotiate better prices, resulting in a
greater profit. Please note that the calculation of the gross profit
includes the companys involvement in the through-put of petroleum
products for companies in the industry, which offers it a major gross
profit margin of 50%, as well as the companys contractual obligations
to AKARPORT as the company invoices in a manner achieving the
required gross profit margin, having calculated the cost of the
contractual obligations to AKARPORT.
3. Operating expenses as percentage of sales for the years 2012-2014
will be as follows.
2012
5,27%

2013
5,26%

2014
5,25%

It is noted that the operating expenses as percentage of sales are


reduced compared to the past of the company, especially after the full
establishment of the new investment. The reduction in operating costs
is achievable because of the costing advantage of the new investment,
as mentioned above, and because the largest part of the investments
operation will be supported through the companys current facilities in
Patras, through an on-line connection. Please note that the operating
expenses for each year include the companys contractual obligation to
AKARPORT for the payment of fees for the transit of pipelines through
the port of Astakos, for conducting ship refuelling and loading of
petroleum products.
4. Interest expenses relate to interest from the companys short- and
long-term loans and are calculated each year as the annual average
balance of loans at rate of 5.5%. Interest income relates to interest
from the companys cash and are calculated each year as the annual
average balance of cash at rate of 2%.
5. Income tax is calculated at 25% on net profits before taxes. Dividends
are calculated at 35% of net profit after tax for the period 2011-2014,

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34

as the company does not distribute dividends in 2010 to strengthen its


capital base.

6.3 ASSETS 2010-2014


1. The annual depreciation of the companys fixed assets is detailed in
the attached Depreciation Table.
2. The new stocks for the years 2010-2014 are obtained from the
formula:
(Days-Stocks * Cost of goods sold)/365, where Days-Stocks are set at
approximately 1 from 2010 onwards. These stocks are sufficient for
the unimpeded function of distribution, as the company may retain, as
a consignment, a large volume of stocks in the new facility at any time,
essentially acting as a repository for refineries. Specifically, per
product category, Days-Stocks are as follows:
Category

Maritime
Diesel
Heating
Petrol
Fuel oil
Asphalt
Liquid gas

Days - Stocks
0
0
0
0
0
10
5

3. Claims amounting to 5 million, as shown in the balance sheet of


31/12/2009 are collected in 2010 to settle current liabilities. Claims
amounting to approximately 6 million, which, in accordance with the
Auditors observation on the balance sheet of 2008 originate from the
checks of customer who recently face liquidity problems (VOUTOS,
KATSIKIS, KAMPEROS) and from a requirement against a member of
management, which has paid as an advance for work, are assumed to
be fully recovered within the decade, starting in 2010. It should be
noted that the level of these bad requirements has increased from
4.5 million to 6 million in 2009.
4. Advances from clients concern the required advance of that part of the
cost of buying fuel that pertains to taxes, duties, etc., for receiving
fuel from the company. This requirement amounts to approximately
500 thousand per two weeks.

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35

5. The new requirements for the years 2009-2013 are obtained from the
formula:
(Days-Requirements * Sales)/365, where Days-Requirements for each
product category are listed in the table below:
Category

Maritime
Diesel
Heating
Petrol
Fuel oil
Asphalt
Liquid gas
Wastewater
Through-Put

2008
0
90
120
0
150
180
120
0
0

2009
0
70
110
0
120
120
90
0
0

Days - Requirements
2010
2011
2012
30
30
30
50
45
40
50
40
35
20
20
20
90
90
90
90
90
90
60
60
60
30
30
30
30
30
30

2013
35
40
35
25
95
95
60
30
30

2014
40
40
35
30
105
105
65
30
30

The change in the companys credit policy is a strategic objective, as


reported, to improve its liquidity and is achievable based on its product
mix and expansion of the companys clientele through the new
investment, thereby reducing the Days-Requirements from the nature
of works alone. Until now, the high rate of claim recovery was justified
by the fact that the company has claims against the government,
which is known to delay payments, and from the sale of asphalt to
construction companies, which in turn are awaiting payment by the
government. The companys future strategy is that new customers will
enjoy the same credit policy as older clients, and the benefits offered
by the company will be integrated in turnover discounts rather than
long-time credits. In the second phase, the companys strategic goal is
to change the credit policy applicable to older clients.

More specifically, the companys target collection policy per product


category is as follows:
Maritime Fuel: Recovery in about 30-40 days for the years 2010-2014.
Diesel: The significant change in company policy is that, first, the
company did not renew its contract with the state, which causes delay
in payments, and, secondly, that it follows the credit policy of the
market, which concerns reducing the time to collect claims. The
company offers the credit offered by the competition plus one month
extra credit at a marginally higher price. The integration of the above
in the present business plan takes into account their gradual
absorption over time. In 2010, the average collection period for diesel
fuel is 50 days, while in 2011-2014 the average collection period is
approximately 40 days.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

36

Heating: As with diesel, the change in the companys credit policy is


that now it will not distribute gas to public bodies, which delay
payments, but only to wholesalers and the private sector, with a
maximum credit of 15 days or purchase by cash. The integration and
implementation of the above in this business plan takes into account
the forces of inertia of the past, so in 2010 the average collection
period for heating oil is 50 days, and for subsequent years (2011-2014)
the corresponding credit is around 35 days.
Petrol: The average recovery period is set at 20 to 25 days, consistent
with the corresponding period in the industry.
Fuel oil, Asphalt, Liquid gas: The gradual decrease in the companys
average collection period was already noted in 2009 compared to 2008,
and continued in 2010. This is consistent with the market trend, where
competitive forces contribute to the reduction of the collection time,
for liquidity purposes. The above market trend is followed by the
company.
Waste-Through Put: For all years, the period of one month is defined
as the average collection time.

6. The Balancing Account is used to balance Assets and Liabilities.

6.4 LIABILITIES 2010-2014


1. The companys existing long-term loans are serviced based on existing
contractual relationships and could be repaid within five years.
2. To alleviate the pressure the company is under due to its debts to
Shell, it proceeds to a sale and lease back of the Astakos facilities,
worth 15 million, through which the debts to Shell ( 7 million) and
Piraeus Bank (bonds 4 million) are paid, while the working capital for
the company amounts to 4 million.
3. New Days-Creditors are calculated as follows:
(Days Suppliers * Cost of sales)/365, where Days Suppliers =
approximately 21 for the years 2010-2014. Today, the main suppliers
of the company are refineries that follow a policy of collecting no later
than 30 days on average. Specifically, Days-Creditors, by product
category are as follows:

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

37

Category
Maritime
Diesel
Heating
Petrol

Days - Creditors
20
20
15
15

Category
Fuel oil
Asphalt
Liquid gas
Through-Put

Days - Creditors
30
35
30
15

Please note that, to receive fuel, every 15 days the company must pay
around 500 thousand (for the first two years of operation through
the new activity), because of taxes and duties to be paid in advance
for the purchase of fuel. This amount is added as suppliers advance in
the companys claims for all years, with a corresponding reduction in
the credit it receives.
4. The short-term bank loans balancing account is used to balance Assets
and Liabilities.
5. The reason the company is looking for financing is that due to the
financial and debt crisis in Greece, the local banking system was not
liquid and capable to refinance existing long term debts, to perform
the Astakos Port facilities sale and lease back and to finance with short
term loans some customers bad debts.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

38

39

6.5 SUMMARY FINANCIAL DATA 2012-2014


2012

2013

2014

Sales

99.169.220

120.049.591

145.502.601

Gross profit

13.781.896

16.375.520

19.522.260

KEY FINANCIAL FIGURES

Operating Expenses

5.241.002

6.330.440

7.657.838

EBITDA

8.540.894

10.045.081

11.864.423

Net Profit

7.444.924

9.113.629

11.056.221

Assets

28.748.581

31.607.048

36.068.391

Own Funds

11.861.296

16.304.190

21.694.098

Net Assets

9.304.265

8.687.655

8.071.045

Current Assets / Current Liabilities

3,74

4,20

4,38

(Cash + Receivables) / Current Liabilities

3,71

4,17

4,36

LIQUIDITY INDICATORS

ACTIVITY INDICATORS
Days receivable

66,76

66,12

67,57

Days stock

0,49

0,46

0,42

Days credit

15,14

15,45

15,61

Speed of converting current assets into cash


Speed of converting fixed assets into cash

3,45

3,80

4,03

10,66

13,82

18,03

13,90%

13,64%

13,42%

8,61%

8,37%

8,15%

PERFORMANCE INDICATORS
Gross Profit / Turnover
EBITDA / Turnover
Net profit before taxes / Turnover

7,51%

7,59%

7,60%

62,77%

55,90%

50,96%

91,39%

91,63%

91,85%

5,28%

5,27%

5,26%

Loan equity ratio

1,42

0,94

0,66

Own funds / Net Fixed Assets

1,27

1,88

2,69

Own fund performance

OPERATING EXPENSES INDICATORS


(Cost of sales + Oper. expenses) / Turnover
Oper. expenses / Turnover

CAPITAL STRUCTURE INDICATORS

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

7 CONCLUSION
The following points-conclusions can be extrapolated from DIMOILs
results for the years 2010-2014, in conjunction with the consistency
check in Table 8.
1. The turnover of the company is growing, reflecting the positive
outlook of the petroleum industry and the specifics of the
companys activity.
2. Gross profit will increased to 13.8% on average, at levels higher
than past years (2005-2008) and than competition, mainly due to
the costing advantage in the transport of products from the
companys new plant.
3. Returns on equity tend to be above the levels of competition, with a
rising trend in the years 2012-2014.
4. The net profit margin stands at an average of 7%, increasing in
upcoming years is not much higher than the competition and the
past performance of the company.
5. The loan equity ratio drops significantly over the years and in 2014
stands at 0.7/1.
The operations will allow the company to achieve these results are:

Functional activation of the company based on the operation of the


new facility in Astakos Port, which enables the development of its
turnover and the reduction of operating expenses.
Change in credit terms for the payment and collection of claims, to
boost liquidity and reduce the need for short-term bank loans.

In the consistency checks, as competitors we have chosen companies in


the upper third of the market (23 out of 70 companies), in terms of
turnover, based on their 2008 data. A key point arising from this business
plan is that the company, in its new region of focus, aims to achieve a
market share that will allow it to be part of the 15-20 leading companies
in the industry in the next five years.

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

40

Table 8: Consistency Check

41

TURNOVER

GROSS
PROFIT

NET
PROFIT

OWN
FUNDS

LIABILITIES

GROSS
PROFIT
MARGIN

NET
PROFIT
MARGIN

LOAN
EQUITY
RATIO

EQUITY
PERFORMANCE

YEAR

COMPANY

2008
2008
2008

DIMOIL
Market Average
EKO ELDA SA (IAS)

55.943.902
573.968.227
2.285.945.000

5.171.141
31.830.328
119.237.000

23.422
1.082.380
2.317.000

2.598.481
33.716.470
223.427.000

46.229.452
85.098.622
321.249.000

9,24%
5,55%
5,22%

0,04%
0,19%
0,10%

17,79
2,52
1,44

0,90%
3,21%
1,04%

2008
2008
2008

SHELL HELLAS SA
BP HELLAS SA (IAS)
MAMIDOIL-JETOIL SA (IAS)

1.856.721.069
1.397.522.153
1.281.047.000

93.124.506
153.975.752
56.862.000

-14.117.291
14.780.552
5.724.000

94.006.662
229.335.561
62.976.000

258.285.082
206.236.533
306.228.000

5,02%
11,02%
4,44%

-0,76%
1,06%
0,45%

2,75
0,90
4,86

/
6,44%
9,09%

2008
2008

AIGAION OIL SA
AVIN OIL SA (IAS)

1.127.308.778
1.019.054.000

37.937.050
50.788.000

1.497.722
2.528.000

16.196.113
15.858.000

157.969.707
165.838.000

3,37%
4,98%

0,13%
0,25%

9,75
10,46

9,25%
15,94%

2008
2008
2008

ELINOIL SA (IAS)
REVOIL SA (IAS)
ETEKA SA

743.920.000
571.993.228
533.339.940

48.274.071
20.824.700
13.486.315

1.738.000
2.118.280
715.506

35.677.000
19.803.284
5.533.894

102.810.000
45.440.511
55.533.012

6,49%
3,64%
2,53%

0,23%
0,37%
0,13%

2,88
2,29
10,04

4,87%
10,70%
12,93%

2008
2008
2008

CYCLON HELLAS SA (IAS)


SILK OIL SA
MIRTEA SA

399.245.000
348.756.506
225.827.583

24.010.000
16.100.013
25.058.292

3.675.000
910.451
3.811.436

27.748.000
2.916.493
1.617.175

82.450.000
40.446.756
8.223.890

6,01%
4,62%
11,10%

0,92%
0,26%
1,69%

2,97
13,87
5,09

13,24%
31,22%
235,68%

2008
2008

ELPETROL SA
KAOIL BROS KOUTLA SA

219.821.179
206.961.765

5.022.901
6.151.775

-9.658.050
94.987

-6.582.587
4.269.107

36.011.239
23.432.494

2,28%
2,97%

-4,39%
0,05%

/
5,49

146,72%
2,22%

2008
2008
2008

DRACOIL SA
SEKA STATIONS FUEL SUPPLY SHIP SA
PETROL SUPPLY STATIONS SEKAVIN SA

204.432.702
144.063.944
132.250.127

5.156.255
7.644.277
3.371.842

-1.979.315
2.826.317
1.102.323

290.640
5.235.798
4.822.241

43.375.744
8.678.125
11.259.493

2,52%
5,31%
2,55%

-0,97%
1,96%
0,83%

149,24
1,66
2,33

/
53,98%
22,86%

2008
2008
2008

SUNOIL SA
MOBIL OIL HELLAS SA
KMOIL SA

123.880.932
90.021.341
88.033.699

4.280.641
16.672.165
2.876.679

-3.182.912
6.477.248
15.557

-950.276
20.303.306
3.168.049

27.018.708
6.261.060
15.362.706

3,46%
18,52%
3,27%

-2,57%
7,20%
0,02%

/
0,31
4,85

/
31,90%
0,49%

2008
2008

EKO KALIPSO LLC


ARGO GREEK PETROLEUM COMPANY SA

79.163.000
74.121.085

9.202.000
5.073.126

2.027.000
439.533

2.264.000
5.142.427

2.418.000
11.987.361

11,62%
6,84%

2,56%
0,59%

1,07
2,33

89,53%
8,55%

47.839.199
145.502.601

6.968.173
19.522.260

1.033.387
11.056.221

2.420.918
21.694.098

20.752.885
14.374.293

14,57%
13,42%

2,16%
7,60%

8,57
0,66

42,69%
50,96%

2008
2014

NETOIL SA
DIMOIL

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

8 APPENDIX

42

ASSETS
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

B. OTHER INSTALLATION EXPENSES


1. Foundation & Installation Expenses

2.458

2.458

2. Construction period interest


4. Other establishment expenses

11.238

34.365

51.699

41.360

31.020

20.680

10.340

176.241

636.007

1.421.567

1.137.253

852.940

568.627

284.313

8.794

88.938

69.209

52.724

50.725

40.580

30.435

20.290

10.145

11.252

91.396

256.688

723.097

1.523.991

1.219.192

914.394

609.596

304.798

1. Land-Plots

919.011

990.698

990.698

1.376.224

1.376.224

1.376.224

1.376.224

1.376.224

1.376.224

1.376.224

2. Buildings and structures

201.955

183.582

178.677

220.480

8.266.549

7.439.894

7.026.567

6.613.240

6.199.912

5.786.585

3. Mechanical-Technical Facilities-Other equipment

521.633

468.069

414.369

368.516

1.995.498

1.632.681

1.451.272

1.269.863

1.088.454

907.045

4. Transportation means

131.773

158.737

137.097

206.832

114.179

76.120

57.090

38.060

19.030

5. Furniture and fixtures

34.123

25.081

18.579

16.499

17.059

11.373

8.530

5.687

2.844

6. Assets under construction and advances

13.361

13.361

336.219

2.938.866

1.821.857

1.839.529

2.075.639

5.127.418

11.769.511

10.536.292

9.919.682

9.303.073

8.686.464

8.069.854

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.192

1.821.857

1.839.529

2.075.639

5.127.418

11.770.702

10.537.484

9.920.874

9.304.265

8.687.655

8.071.045

93.267

103.285

115.680

129.561

145.109

Total other installation expenses ()


C. FIXED ASSETS
. Intangible Assets
1. Costs of research and development
2. Concessions and industrial property rights
Total
. Investments

Total
. Other financial investments
1. Investments in affiliated companies
2. Investments in other companies
7. Other current receivables
Total
Total Fixed Assets (C)
D. CURRENT ASSETS
. Stocks
1a. Merchandise (working)

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

1. Merchandise

212.371

462.922

391.191

182.011

204.525

Total

212.560

525.559

855.612

314.382

204.525

6.162.626

6.803.942

8.441.483

9.352.305

4.470.875

117.085

205.085

135.585

439.485

439.485

45.300

31.800

16.800

16.800

16.800

1.411.909

1.549.902

2.099.141

3.399.553

12.530.839

17.619.687

17.191.865

22.937.603

10.679.561

120.399

144.927

47.050

487.989

4.578.751

43

93.267

103.285

115.680

129.561

145.109

9.763.014

10.678.384

12.669.831

16.556.753

21.966.204

4.120.876

3.663.000

3.205.125

2.747.250

2.289.375

978.837

1.169.024

1.405.789

1.707.323

2.068.246

. Requirements
1a. Clients (working)
1. Clients
2. Bills Receivable
2b. Bills in banks for collection
3. Checks receivable in portfolio
- Checks receivable in banks to collateral
3b. Checks receivable in arrears
5. Advances BY suppliers
11. Sundry Debtors - Others
Total

1.046.847

1.147.047

1.983.637

2.622.310

1.224.772

1.102.294

979.817

857.340

734.863

612.386

21.435.005

27.502.390

29.915.560

39.256.044

21.410.243

15.965.021

16.490.225

18.138.085

21.746.189

26.936.211

169.266

402.039

580.955

738.845

916.026

. Securities
1. Shares
2. Other securities
Total
V. Available Funds
1a. Cash in hand (balancing)
1. Cash in hand
2. Current Deposits and Time Deposits
Total
TOTAL CURRENT ASSETS (D+D+DV)

837.281

356.627

633.238

1.741.543

431.665

2.538.729

2.085.192

1.649.949

1.268.946

2.895.357

2.718.430

3.391.492

169.266

402.039

580.955

738.845

916.026

22.916.511

30.923.305

33.489.603

42.961.918

21.614.768

16.227.554

16.995.550

18.834.720

22.614.595

27.997.346

1.309.924

. PREPAYMENTS AND ACCRUED INCOME


1. Prepaid Expenses

11.960

15.501

2. Income receivable

59.446

137.055

310.315

Total

71.406

137.055

310.315

15.501

1.309.924

24.821.025

32.991.284

36.132.245

48.827.933

36.219.385

27.984.230

27.830.818

28.748.581

31.607.048

36.068.391

TOTAL ASSETS (B+C+D+)

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

LIABILITIES
2005

2006

2007

2008

44 2010

2009

2011

2012

2013

2014

. OWN FUNDS
. Share capital
1. Paid-up

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

TOTAL

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

2.931.066

1. Fixed asset Revaluation Differences

593

593

593

Total

593

593

593

19.036

22.543

22.543

22.543

22.543

22.543

22.543

22.543

22.543

22.543

626

626

626

626

626

626

626

626

626

626

5. Untaxed reserves under special laws

36.351

36.351

36.351

36.351

36.351

36.351

36.351

36.351

36.351

36.351

Total

56.013

59.520

59.520

59.520

59.520

59.520

59.520

59.520

59.520

59.520

-856.012

-392.105

-1.120.313

2.328.772

5.241.310

8.870.710

13.313.604

18.703.512

. Revaluation - Investment grants

V. Reserves
1. Statutory Reserve
2. Extraordinary reserves

V. Retained earnings
2. Profit brought forward
Total

TOTAL OWN FUNDS (+AIII+V+V)

4.439

2.709

-856.012

-392.105

-1.120.313

2.328.772

5.241.310

8.870.710

13.313.604

18.703.512

2.992.111

2.993.887

2.135.167

2.598.481

1.870.273

5.319.358

8.231.896

11.861.296

16.304.190

21.694.098

750.000

4.186.000

4.144.361

380.000

300.000

220.000

140.000

60.000

. PROVISIONS FOR RISKS AND EXPENSES


2. Other provisions
Total provisions ()

C. LIABILITIES
. Long-term Liabilities
1. Bonds

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

2. Bank Loans (1)

355.019

252.152

179.286

622.931

586.650

3. Liabilities from leasing


Total

355.019

252.152

929.286

4.808.931

4.731.011

825.403

578.577

1.701.873

4.852.477

7.327.171

4.500.000

4.125.000

3.375.000

2.625.000

1.875.000

9.350.000

8.250.000

7.150.000

6.050.000

15.330.000

13.775.000

11.845.000

9.915.000

7.985.000

5.000.000

3.000.000

1.500.000

1.000.000

1.000.000

45
10.450.000

. Current Liabilities
1. Suppliers
2a. Cheques Payable

5.401.539

5.801.130

7.922.732

7.584.651

5.444.071

14.513.206

22.279.498

21.483.026

26.690.718

16.199.974

4. Customer Advances

260.471

627.372

727.134

866.299

5. Taxes & Fees Liabilities

143.667

101.645

315.170

149.589

227.829

6. Insurance Organizations

35.529

45.030

44.719

51.938

161.559
696.750

3. Banks, Current Liability Accounts

7. Long-term liabilities payable next year


10. Dividends Payable
11. Sundry Creditors

71.761

109.628

595.245

1.224.435

160.000

55.000

2.873

10.310

7.879

414

1b. Suppliers (working)

2.334.872

2.823.922

3.542.285

4.387.858

5.389.293

3c. Banks, Current Loans (balancing)


Total

21.414.450

29.608.190

32.797.779

41.420.521

30.057.354

7.334.872

5.823.922

5.042.285

5.387.858

6.389.293

21.769.469

29.860.342

33.727.065

46.229.452

34.788.365

22.664.872

19.598.922

16.887.285

15.302.858

14.374.293

1.310.748

2. Other Transitory

59.446

137.055

270.013

Total Transitory (D)

59.446

137.055

270.013

1.310.748

24.821.025

32.991.284

36.132.245

48.827.933

37.969.385

27.984.230

27.830.818

28.748.581

31.607.048

36.068.391

TOTAL LIABILITIES (C+C)


D. ACCRUALS AND DEFERRED INCOME
1. Accrued expenses

GRAND TOTAL LIABILITIES (++C+D)

2012

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

2013

2014

. Operating Results
Turnover
Less: Cost of Sales
Gross Operating Profit
Plus: Other operating income
Total
LESS:
1. Management Expenses
2. Expenses for Research & Development
3. Selling Expenses
Total Expenses
Partial results (operating profits)
PLUS:
1. Income from investments and securities
2. Income from securities
3. Profits from sale of investments and securities
4. Interest income and similar income
LESS:
1. Provisions for depreciation of investments and securities
2. Expenses and losses from investments and securities
3. Interest and related expenses
Total Operating Results (Profit)
. Extraordinary Results
PLUS:
1. Extraordinary Income
2. Extraordinary profits
4. Income from previous years provisions
LESS:
1. Extraordinary Expenses
2. Extraordinary losses
4. Provisions for extraordinary risks
Operating and extraordinary results (profit)
LESS:
Total depreciation of fixed assets
Less: Those incorporated in operating costs
NET ANNUAL PROFIT & LOSS (Profit)

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

99.169.220
85.387.324
13.781.896
0
13.781.896

46

120.049.591
103.674.071
16.375.520
0
16.375.520

145.502.601
125.980.341
19.522.260
0
19.522.260

1.929.273

2.335.358

2.830.500

3.311.729
5.241.002
8.540.894

3.995.082
6.330.440
10.045.081

4.827.337
7.657.838
11.864.423

0
0
0
9.830

0
0
0
13.198

0
0
0
16.549

0
0
828.300
828.300
7.722.424

0
0
667.150
667.150
9.391.129

0
0
547.250
547.250
11.333.721

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0
7.722.424

0
0
0
0
9.391.129

0
0
0
0
11.333.721

891.854
614.354
277.500
7.444.924

891.854
614.354
277.500
9.113.629

891.854
614.354
277.500
11.056.221

2010
Acquisition value

2011
Acquisition value

C. FIXED ASSETS
. Installation Expenses
. Tangible Assets
1. Land-Plots
3. Buildings and structures
4. Mechanical-Technical Facilities-Other equipment
5. Transportation means
6. Furniture and fixtures
Total

Depreciation
Installation Expenses
Buildings
Machinery
Transportation means
Furniture
Total
Accumulated depreciation
Installation Expenses
Buildings
Machinery
Transportation means
Furniture
Total
Non-depreciated Value
Installation Expenses
Buildings
Machinery
Transportation means
Furniture
Total
Installation Expenses

Dr. Kiriakos Tobras * Rachel Makri MSc Banking

2012
Acquisition
value
47

2013
Acquisition value

2014
Acquisition value

1.523.990,54

1.523.990,54

1.523.990,54

1.523.990,54

1.523.990,54

1.376.224,01
8.266.549,38
1.995.498,45
114.179,33
17.059,36
13.293.501,07

1.376.224,01
8.266.549,38
1.995.498,45
114.179,33
17.059,36
13.293.501,07

1.376.224,01
8.266.549,38
1.995.498,45
114.179,33
17.059,36
13.293.501,07

1.376.224,01
8.266.549,38
1.995.498,45
114.179,33
17.059,36
13.293.501,07

1.376.224,01
8.266.549,38
1.995.498,45
114.179,33
17.059,36
13.293.501,07

2010
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2010
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2010
1.421.566,53
1.376.224,01
7.853.221,91
1.814.089,50
95.149,52
14.216,25
12.574.467,72

2011
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2011
550.489,60
826.654,94
362.817,90
38.059,62
5.686,23
1.783.708,29
2011
1.137.253,22
1.376.224,01
7.439.894,44
1.632.680,55
76.119,71
11.373,13
11.673.545,07

2012
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2012
550.489,60
1.239.982,41
544.226,85
57.089,44
8.529,34
2.400.317,64
2012
852.939,92
1.376.224,01
7.026.566,97
1.451.271,60
57.089,89
8.530,02
10.772.622,42

2013
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2013
550.489,60
1.653.309,88
725.635,80
76.119,25
11.372,45
3.016.926,98
2013
568.626,61
1.376.224,01
6.613.239,50
1.269.862,65
38.060,08
5.686,91
9.871.699,77

2014
275.244,80
413.327,47
181.408,95
19.029,81
2.843,11
891.854,15
2014
550.489,60
2.066.637,34
907.044,75
95.149,06
14.215,57
3.633.536,33
2014
284.313,31
1.376.224,01
6.199.912,03
1.088.453,70
19.030,27
2.843,80
8.970.777,12