 PROFILE |
When the new Director General, Mr Konan N'Guessan officially assumed office on Ist March 1997, the main objective was to revitalise Gestoci. One year after, we note with respect to the performances of the company that considerable efforts were made. We hereby publish the Management report following the Board of Directors' meeting and the Annual General Assembly held on 4 and 22 May respectively at the headquarters of the company in Abidjan-Vridi and Yamoussoukro Hotel Le Président.
| ACTIVITIES OF THE COMPANY DURING THE LAST FISCAL YEAR |
Fiscal year 1996/1997 which exceptionally lasted 15 months because of the compliance with Syscoa (West African Accounting System), took place in an economic environment in Côte d'Ivoire characterised by a growth rate of more than 5% and inflation figures maintained at 5.2% by December ending 1997.
The economic recovery with the first signs were perceptible after the devaluation confirmed the trend with favourable results in 1997.
Our company like all companies in the petroleum product distribution sector was able to fully take advantage of the revitalisation of the national economy and especially the economy of the entire subregion.
In practical terms, this was manifested at Gestoci by an increase in turnover and especially the realisation of an unprecedented profit-based performance.
The activities of the company for the fiscal year could be analysed according to the following aspects:
 Operations |
The transport of petroleum products for the purpose of supply for consumption increased sharply compared to the previous fiscal year:
- on the national market, petroleum products transported rose from 331 974 m 3/T in 1995/1996, 559 005 m3 T in 1996/1997 corresponding to the average monthly transport of 27 665m3 / T in 1995 / 1996 and 37 267 m3 / T in 1996/1997 representing an increase of 35%.
- on the export market, petroleum products transported rose from 293 852 m3/T in 1995/96 to 569 185 m3 T in 1996/97 corresponding to a monthly transport of 24 488 m3 / T in 1995/ 96 and 37 946 M3 /T in 1996/97 representing an increase of 55%.
These performances were due to the increase in consumption, a consequence of economic recovery but also the arrival at Gestoci of new clients (Total and Texaco) following the closure of Siepp's fuel depot.
This sharp increase in the transport of petroleum products led to the movement of a greater number of tankers(from about 70 tankers per day in 1995/96 to about 200 tankers in 1996/97 at the only depot in Abidjan).
The level of the security of stocks remains equal to 91 210 m3 /T corresponding to 34 days of consumption.
| Technical and Security operations |
Indispensable investments were made for the security of products while security installations were reinforced. They include notably the acquisition of two gages for the butane gas sector
( a weigh bridge, valve-closing caps, twenty VHF
radios, extinguishers and other security equipment). |
In addition to these investments, other measures relating to security were taken in 1997. They are:
- the positioning of gendarmes (special military force ) in each depot,
- the construction of a parking lot for 80 tankers in Abidjan.
- the training of staff members for fire control,
- the organisation of a security audit on the installations in Abidjan by SIR,
- the signing of maintenance contracts for industrial tools (electrical equipment, loading stations, meters, etc...)
| Administration and Finance |
Turnover and Fiscal year performance
The sharp upward swing of turnover rose from CFA F 6 204 to 9 781 million representing an increase of 58% or rather 26% in 12months is linked to the increase of petroleum products transported from the depot and the increase in the rate of contract-based tanker trips in 1997.
The level of operating costs increased generally due to upsurge in activity but in to a lesser extent compared to the turnover of CFA F 8 329 million in 1996/97 against CFA F 5 834 million representing an increase of 43%(or 14% in 12 months).
The gross operating income of Fiscal Year 1996/97 rose to CFA F 2 513 million .
Concerning net income after tax , it rose to CFA F 1 115 million against:
(In CFA Francs)
234 million in 1995/96
23million in 1994/95
7 million in 1993/94
43 million in 1992/93
92 million in 1991/92
133 million in 1990/91
Income allocation
The net income which stood at CFA F 115 587 448 was obtained after Depreciation Allowance and Reserves of CFA F 995 232 451 and tax deduction of CFA F 698 900 for the settlement of Corporate income tax.
Since the very low level of " carried forward " operations of previous fiscal years (105 million) and high expenditure required for the repair and refurbishing of installations
(nothing less than CFA F 1 billion for 1998) and also in a bid to restore the company's financial standing by increasing stockholders' equity through heavy " carried forward " operations ( CFA F 479 702 603 ), the board proposed the distribution of CFA F 635 884 845 corresponding to 57% of net earnings which accrued during the Fiscal Year in the form of dividends.
Thus, each of the 24 000 shares making up the stockkolders' equity of the company CFA F 26 495.2 received gross dividend which translates into a net dividend of CFA F 23 315.6 after 12% withholding tax deduction in respect of Stock tax .
Following this earnings allocation , the credit " carried forward " account of CFA F 105 247 481 rose to CFA F 584 950 084.
| DRAFT RESOLUTIONS |
| FIRST RESOLUTION |
Having listened to the reading of the Board of Directors' management report, the General Assembly approved all actions and operations carried out during the said Fiscal Year as contained in this report.
| SECOND RESOLUTION |
Having listened to the reading of the Auditors' report on the capital outlay and composition of Fiscal Year accounts as at 31 December 1997, the General Assembly approved these accounts and the Fiscal Year balance sheet as contained in the presented report.
| THIRD RESOLUTION |
The General Assembly decided to allocate as follows the Fiscal Year earnings as at 31 December 1997 representing the sum of CFA F 1 115 587 448.
-Gross share dividend: CFA F 635 884 845 representing 57% of net earnings.
- Fiscal Year carried forward CFA F 479 702 603.
Following this allocation, the " Carried forward " account which was previously a credit balance of CFA F 105 247 481 posted a credit balance of CFA F 584 950 084.
| FOURTH RESOLUTION |
The General Assembly gave full discharge to the Directors for the management of the accounts and the Auditors for the execution of their mandate. |
