Annual Report & Accounts 2008 - malaysiastock.biz fileOnthecover: Esso Malaysia Berhad is committed...
Transcript of Annual Report & Accounts 2008 - malaysiastock.biz fileOnthecover: Esso Malaysia Berhad is committed...
On the cover:Esso Malaysia Berhad is committed tomeeting Malaysia’s growing energyneeds in an environmentally andsocially responsible manner. We seekto maintain high standards of safety,product quality and environmental carewhile making positive contributions tothe communities where we operate.
Table of contentsTable of contents
Financial Highlights
Chairman’s Statement
Five-Year Summary Charts
Board of Directors /
Profile of Directors
Corporate Citizenship Report
Corporate Information
Corporate Governance
Board Audit Committee Report
Report of the Directors
Report of the Auditors
Financial Statements
Information on Stockholdings
List of Major Properties Owned
Notice of Annual General Meeting
Statement Accompanying Notice ofAnnual General Meeting
Penyata Pengerusi
Lembaga Pengarah
Notis Mesyuarat Agung Tahunan
Penyata Yang Dilampirkan BersamaNotis Mesyuarat Agung Tahunan
1
2
5
8
10
12
14
18
19
25
27
30
31
53
54
55
56
57
58
2008 2007 %RM Million ChangeRM Million
Revenues 8,269 13
Profit after taxation 20 (65)
Earnings per ordinary stock unit (sen) 7.3 (64)
Gross dividend per ordinary stock unit (sen) 12 -
Total assets employed 2,123 (6)
Total shareholders’ funds 650 (2)
Sales volume 97 (4)(thousands of barrels per calendar day)
9,336
7
2.6
12
2,006
634
93
FINANCIAL HIGHLIGHTS
AN
NU
AL
RE
PO
RT
&A
CC
OU
NT
S2
00
6
1
Shareholders mingled with EMB Directors and obtained abetter understanding of the Company’s operations andperformance at l .ast year’s Annual General Meeting
ESSO MALAYSIA BERHAD
4
Dividends for Financial Year 2008
Board Matters
Liam M. Mallon Chairman
March 13, 2009
The Board proposes to maintain the Company
dividend for the year ended December 31, 2008 of
12 sen less Malaysian income tax at 25% per
ordinary stock unit. This matches the dividend for
the 2007 financial year.
Encik Zain C. Willoughby resigned from the Board
on December 1, 2008 to accept a senior position
with ExxonMobil USA. I would like to place on record
our appreciation to Zain for his many invaluable
contributions as Financial Director of the Company.
Effective the same day, Puan Fatimah Merican was
appointed to the Board as Business Services
Director. I welcome Fatimah to the Board and look
forward to working with her.
On behalf of the Board, I would like to thank our
employees for their continued hard work and
dedication. The petroleum refining and marketing
business remains challenging and the Company's
success is highly dependent on the skills, abilities
and commitment of each employee to overcome
these challenges. I also express my appreciation to
our shareholders, dealers and customers for their
continued support of Esso Malaysia Berhad.
Monitoring and optimisation of operations by refinery personnel is key to reliable operations and maximum yield of high-value products.
EMB has been providing scholarships and best student awards to primary and secondary students in Negeri Sembilan for the past 32 years through the ExxonMobil Education and Scholarship Fund.
ANNUAL REPORT & ACCOUNTS 2008
Bagi pihak Lembaga Pengarah, saya ingin melaporkan prestasi kewangan dan operasi Syarikat bagi
tahun berakhir 31 Disember, 2008.
Syarikat telah mencatatkan kerugian selepas cukai sebanyak RM251 juta pada tahun 2008, berbanding
dengan keuntungan sebanyak RM57 juta pada tahun 2007. Hasil bagi tahun 2008 berjumlah RM11.7 bilion,
merupakan peningkatan sebanyak 20% berbanding tahun sebelumnya.
Keputusan kewangan Syarikat yang sedemikian adalah akibat daripada kerugian pegangan inventori
ekoran dari penurunan mendadak harga minyak mentah dan produk pada setengah tahun kedua 2008.
Kerugian pegangan inventori bagi tahun semasa berjumlah RM268 juta berbanding catatan keuntungan
pada tahun 2007. Tanpa mengambil kira kesan ini, margin telah meningkat berbanding tahun 2007.
Prestasi operasi bagi tahun 2008 terus kukuh. Loji penapis dan terminal Syarikat terus mencatatkan
prestasi keselamatan yang cemerlang dengan pencapaian selama lebih dari 12 tahun beroperasi tanpa
sebarang kecederaan bagi kakitangan, dan telah memenangi beberapa anugerah industri termasuk
anugerah "Grand Award" dan beberapa “Gold Award" daripada Persatuan Keselamatan dan Kesihatan
Pekerjaaan Malaysia (MSOSH).
Secara purata, kuantiti minyak mentah yang telah diproses adalah sebanyak 61 ribu tong sehari, lebih
rendah dari tahun sebelumnya disebabkan oleh penutupan terancang loji penapis bagi membersihkan
penukar pra-haba minyak mentah (crude preheat exchangers) dan menjalankan kerja-kerja peningkatan.
Syarikat telah memberi tumpuan kepada inisiatif untuk meningkatkan kecekapan operasi loji dan
mempelbagaikan jenis minyak mentah dan feedstok bagi mencapai hasil produk.
Syarikat meningkatkan pasaran dalam perniagaan runcit dengan sepuluh buah stesen servis baru dan
melabur di dalam program pengukuhan jenama bagi menaik taraf stesen servis Syarikat. Sebuah syarikat
yang berkait dengan Syarikat telah mengambil peluang ini bagi menukar jenama stesen
'Mobil' kepada jenama 'Esso' (tanpa perubahan kepada pemilikan atau operasinya) sebagai
sebahagian dari langkah penjenamaan semula, bagi membolehkan kedua-dua syarikat
menikmati faedah satu jenama yang kukuh. Syarikat juga telah menjalankan program
promosi yang menggunakan kelebihan program kad loyalti Smiles yang kompetitif. Secara
keseluruhannya, Syarikat telah melabur RM61 juta terutama di dalam
memperolehi tapak-tapak untuk urusniaga jualan runcit dan
pengembangan rangkaian stesen servis Syarikat yang berkualiti tinggi.
Persaingan terus sengit di dalam urusniaga bahan bakar industrial dan gas
petroliam cecair (LPG). Namun perniagaan ini masih menguntungkan dan
Syarikat telah berjaya meningkatkan jualan di dalam sektor urus niaga
bermargin lebih tinggi.
Di dalam urusniaga bahan pelincir, Syarikat telah mencatatkan keputusan kukuh dalam sektor kenderaan
penumpang yang bermargin tinggi, mencerminkan kejayaan strategi pemasaran minyak pelincir melalui
saluran pengedar yang strategik. Jualan bahan bakar jet kepada syarikat penerbangan domestik dan
antarabangsa juga telah meningkat dan Syarikat berjaya merangkum margin yang lebih kukuh disebabkan
oleh kesan harga susulan yang positif.
Keputusan Kewangan 2008
Ulasan Operasi
5
Liam M. MallonPengerusi
ANNUAL REPORT & ACCOUNTS 2008
ESSO MALAYSIA BERHAD
Pada tahun 2008, Loji Penapisan Minyak Esso Port Dickson telah menerima Anugerah Kecekapan Tenaga Loji ExxonMobil.
6 ANNUAL REPORT & ACCOUNTS 2008
Di dalam bidang tanggungjawab sosial korporat, Syarikat
terus memberi sokongan kepada keperluan masyarakat di
mana Syarikat beroperasi khususnya di dalam bidang
pelajaran. Ini termasuklah memberi sokongan kewangan
di dalam program mempromosi Bahasa Inggeris dan mata
pelajaran Sains, memperbaiki tahap celik huruf anak-anak
orang asli dan menganugerah biasiswa kepada pelajar-
pelajar sekolah rendah dan menengah melalui
"ExxonMobil Education and Scholarship Fund". Sekali
lagi, kakitangan Syarikat serta keluarga mereka dengan
secara sukarela telah menyumbang masa peribadi mereka
di dalam komuniti bagi membolehkan sumbangan Syarikat
lebih menyeluruh dan bermakna. Syarikat juga telah
menyalurkan bantuan kepada Persatuan Bulan Sabit
Merah bagi meringankan beban penduduk dan pekerja
bantuan yang terbabit dalam kejadian tanah runtuh di Bukit
Antarabangsa, Selangor.
Prospek bagi industri minyak akan terus mencabar bagi
tahun 2009 khususnya memandangkan ketidaktentuan
harga secara keterlaluan dan kedudukan ekonomi global
yang tidak menentu. Di dalam suasana ini, strategi
Syarikat ialah terus memberi tumpuan kepada kualiti
produk dan perkhidmatan, operasi yang sempurna dan
pengawalan kos. Di waktu yang sama, Syarikat akan terus
berusaha untuk mengekalkan kedudukan kompetitifnya di
samping terus menumpu kepada kecekapan operasi.
Prospek Perniagaan
EMB terus mengembangkan rangkaian jualan runc i t yang menyed iakan produk dan perkhidmatan berkualiti tinggi kepada pelanggan.
Di kedai serbaneka On the Run, pelanggan boleh menikmati sajian dalam suasana yang mesra.
Dividen bagi Tahun Kewangan 2008
Perihal Lembaga Pengarah
Lembaga Pengarah mencadangkan untuk
mengekalkan dividen Syarikat bagi tahun berakhir 31
Disember, 2008 sejumlah 12 sen, ditolak cukai
pendapatan Malaysia sebanyak 25% setiap unit
saham. Ini setanding dengan kadar dividen yang
dibayar bagi tahun kewangan 2007.
Encik Zain C. Willoughby telah meletak jawatan
daripada Lembaga Pengarah pada 1 Disember, 2008
bagi menjawat jawatan kanan di ExxonMobil, Amerika
Syarikat. Saya ingin merakamkan penghargaan kami
kepada Encik Zain di atas sumbangan yang tidak
terhingga sebagai Pengarah Kewangan Syarikat.
Berkuatkuasa hari yang sama, Puan Fatimah Merican
telah dilantik ke Lembaga Pengarah sebagai Pengarah
Urusan Perniagaan. Saya mengucapkan selamat
datang kepada Puan Fatimah sebagai ahli Lembaga
Pengarah serta mengalu-alukan peluang bekerja
dengan beliau di masa hadapan.
Bagi pihak Lembaga Pengarah, saya ingin
mengucapkan terima kasih kepada kakitangan kami di
atas kerja keras dan dedikasi mereka yang berterusan.
Urusniaga penapisan dan pemasaran petroliam kekal
mencabar dan kejayaan Syarikat amat bergantung
kepada kemahiran, kebolehan dan komitmen setiap
kakitangan untuk mengatasi cabaran tersebut. Saya
juga ingin merakamkan penghargaan kepada
pemegang-pemegang saham kami, pengedar dan
pelanggan-pelanggan di atas sokongan berterusan
kepada Esso Malaysia Berhad.
Liam M. MallonPengerusi
13 Mac, 2009
7ANNUAL REPORT & ACCOUNTS 2008
ESSO MALAYSIA BERHAD
Board of Directors / Lembaga Pengarah
AN
NU
AL R
EP
OR
T &
AC
CO
UN
TS
20
08
Y. Bhg.Tan Sri Dato Dr. Said Jalaludin Syed Salim Independent Non-Executive Director /Pengarah Eksekutive PenapisanAbsent during photo sessionTidak hadir pada sessi penggambaran
Encik Zain C WhilloughbyExecutive Financial Director /Pengarah Eksekutive KewanganAbsent during photo sessionTidak hadir pada sessipenggambaran
SEATED FROM LEFT TO RIGHTDUDUK DARI KIRI KE KANANPuan Fatimah MericanExecutive Business Services Director /Pengarah Eksekutif Mr. Liam M. MallonChairman / PengerusiY. Bhg. Tan Sri Abdul Halim AliY. Bhg. Dato’ Zainal Abidin Putih
Perkhidmatan Perniagaan
STANDING FROM LEFT TO RIGHTBERDIRI DARI KIRI KE KANANMr. Lam Foo KeongExecutive Treasury Director / Pengarah Eksekutif PerbendaharaanEncik Abu Bakar Siddik Che EmbiExecutive Refinery Director / Pengarah Eksekutif PenapisanPuan Faridah AliExecutive Retail Business Director /Pengarah Eksekutif PerniagaanJualan Runcit
Puan Sri Junaidah Mohd SaidMr. Manoj DevadasanJoint Secretaries / Setiausaha-setiausaha Bersama
11
AN
NU
AL R
EP
OR
T &
AC
CO
UN
TS
20
08
Mr. Liam M. Mallon
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim
Y. Bhg. Tan Sri Abdul Halim Ali
Y. Bhg. Dato' Zainal Abidin Putih
i
ChairmanB.Sc.(Hons.) Mechanical Engineering, Trinity College, Dublin, Ireland;M.Sc (Hons.) in Petroleum Engineering, Heriot-Watt University, Edinburgh, Scotland.
Independent Non-Executive Director and Member of the Board Audit CommitteeP.S.M., D.S.S.A., D.P.M.P., J.S.M.F.A. Sc., B.V.Sc., University of Punjab, M.Phil. and Ph.D., University of London D.Sc.,Honoris Causa, University of Hull, U. K., D.Sc., Honoris Causa, Soka University, JapanD.Agriculture Technology,Honoris Causa, Thaksin University, Thailand, D.Sc., Honoris Causa, Open University Malaysia.
Independent Non-Executive Director and Member of the Board Audit CommitteeP.M.N., P.J.N., S.P.M.S., S.I.M.P., D.G.S.M., D.H.M.S., D.S.D.K., J.S.M., K.M.N.B.A. (Hons.), University of Malaya
Independent Non-Executive Director and Chairman of the Board Audit CommitteeD.S.N.S., FCA (ICAEW), CA (M), CPA (M)
t
Mr. Liam M. Mallon, aged 46, an Irish citizen, was appointed Director and Chairman of the Company on September 14, 2006. He started his career in the industry in 1984 and spent the first 6 years with British Petroleum in Aberdeen, Scotland and with Expro International Limited in China. Mr. Mallon joined Mobil in 1990 and, over a period of 8 years, held a variety of progressively senior positions where he had opportunity to develop his technical and supervisory capabilities. From 1998 to 2000, he was the Operations Manager of Mobil Producing Nigeria Unlimited from where he moved to ExxonMobil in Australia, in the same capacity, until 2003. From 2003 until 2004 he was based in Houston, Texas as the Planning Manager of ExxonMobil Production Company. In December 2004 he was appointed the President of ExxonMobil Canada Ltd; a position he held until his appointment in 2006 as the Chairman of the ExxonMobil Subsidiaries in Malaysia.
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, aged 65, a Malaysian and a national science laureate, as well as a founder fellow of the Academy of Sciences Malaysia, was appointed Director of the Company on February 15, 2000. He had a long illustrious academic carrier in both University Malaya and University Putra Malaysia (UPM) before retiring as Vice Chancellor of UPM in 2001. He was responsible for transforming UPM to become one of the leading centres of higher education. As an accomplished academician, he has helped found many academic societies and associations, and has published over 350 papers in journals and proceedings in the fields of animal science, university management and education. For his meritorious career and services, he has received numerous awards, decorations and honours nationally as well as internationally. He retired from UPM in April 2001. He is the Chairman of Bank Kerjasama Rakyat Malaysia Berhad, Kejuruteraan Samudra Timur Berhad, Ecofirst Consolidated Berhad, Taylor's Education Berhad and Halal Industry Development Corporation. He is also a Director of TAFI Industries Berhad.
Y. Bhg. Tan Sri Abdul Halim Ali, aged 65, a Malaysian, was appointed Director of the Company on May 22, 2001. Upon graduation from University of Malaya, he joined the Ministry of Foreign Affairs in 1966. After several domestic and foreign postings, he was appointed the Malaysian Deputy Permanent Representative to the United Nations in 1979. He was appointed Ambassador to Vietnam in 1982 and returned to Malaysia in 1985 to be Deputy Secretary General in the Ministry of Foreign Affairs before being appointed Ambassador to Austria. In 1991, he again returned to Malaysia to be Deputy Secretary General I in the Ministry of Foreign Affairs and in 1996 he was promoted to Secretary General. In July 1998, he was appointed Chief Secretary to the Government, the highest ranking civil service post in the country and was responsible for overseeing and coordinating the policies of the government and their implementation. He retired as Chief Secretary to the Government in March 2001. He currently is the Chairman of the Multimedia Development Corporation, and he is also a Director of Malaysia Building Society Berhad, Malakoff Corporation Berhad, IJM Corporation Berhad and LCL Corporation Berhad.
Y. Bhg. Dato' Zainal Abidin Putih, aged 63, a Malaysian, was appointed Director of the Company on March 6, 2003. Upon qualifying from the Institute of Chartered Accountants in England and Wales, he joined the firm of Hanafiah Raslan & Mohamad, which merged with Ernst & Young in July 2002. He has extensive experience in audit having worked as a practicing accountant throughout his career covering many principal industries ncluding banks, insurance, energy, transport, manufacturing, government agencies, plantations, properties, hotels, investment companies and unit trusts. He also has a good working knowledge of taxation matters and management consultancy, especially in the areas of acquisitions, takeovers, amalgamations, restructuring and public listing of companies. He plays an active role in the community and the corporate world being a Past President of the Malaysian Institute of Certified Public Accountants. He was also a member of the Malaysian Communication & Multimedia Commission, a body set up by the Malaysian government to oversee the orderly development of the Multimedia and elecommunication industry in Malaysia. He was the Chairman of Pengurusan Danaharta Nasional Berhad and is the Chairman of Malaysian Accounting Standards Board (MASB). He is currently a director of Tenaga Nasional Berhad and a director of the Bumiputra-Commerce Holdings Berhad, including its subsidiaries CIMB Bank Berhad and CIMB Investment Bank Berhad. He also acts as a Trustee of the National Heart Institute Foundation.
ESSO MALAYSIA BERHAD
12
Fatimah Merican
Abu Bakar Siddik Che Embi
Faridah Ali
Lam Foo Keong
Executive Business Services Director
Encik Abu Bakar Siddik Che Embi, aged 56, a Malaysian, was appointed Refinery Director of the Company on September 1, 2003. He started his career with the Port Dickson Refinery in 1976 and held various technical, operational and supervisory positions in the Refinery until 1990, when he was assigned to the Baytown Refinery, Exxon U.S.A., for about three years. In this assignment, he held the position of Technical Advisor and a number of leadership roles in the Process Department. Following that, he spent six months with Exxon Company International's Refinery Dept. in Florham Park, New Jersey as Refinery Advisor. In 1994, he returned to Malaysia and assumed the position of Deputy Manufacturing Manager of the Port Dickson Refinery. In 1995, he was promoted to Manufacturing Manager and held this position until 2003, when he was appointed Refinery Director.
Puan Faridah Ali, aged 44, a Malaysian, was appointed Retail Business Director of the Company on June 13, 2005. She began her career in ExxonMobil Malaysia Sdn Bhd, and over the years, held supervisory roles in various functions including financial accounting, costing, planning, financial analysis, human resources and retail business. In 2000, after the merger of Exxon Corporation and Mobil Corporation in the United States of America, she assumed the position of Marketing Support Manager and subsequently South East Asia Business Analysis and Reporting Manager before assuming her current position.
Mr. Lam Foo Keong, aged 58, a Malaysian, was appointed Treasury Director of the Company on April 1, 2006. Upon graduation from the University of Malaya he joined Kassim Chan/Deloitte as an auditor in 1974. He started his career with Esso Malaysia Berhad in 1975 in Controller's. During his career he has held a number of supervisory and managerial positions of increasing responsibility in various departments including as Downstream Financial Reporting Manager, Downstream Controller, Upstream Offshore Accounting Manager, Corporate Finance Manager, Finance & Planning Manager, and Area Business Support Centre Manager. Lam has also completed overseas assignments with Esso Eastern Inc and Exxon Company, USA Controller's in Houston and New Orleans and with ExxonMobil Asia Pacific Pte. Ltd.'s Chemical Complex Project in Singapore. He was appointed Treasurer of the ExxonMobil Subsidiaries in Malaysia on April 1, 2006.
Higher National Diploma, Polytechnic of Central London (now University of Westminster) (1976)
Puan Fatimah Merican, aged 54, was appointed Business Services Director of the Company on December 1, 2008. She joined ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI) in 1977. Over her career with the Company she has held various professional and managerial positions in the local and global Information Technology organisations of ExxonMobil. She has also completed a rotational assignment in EMEPMI Public Affairs, and foreign assignments with ExxonMobil Asia Pacific Pte. Ltd., Singapore and ExxonMobil Limited, Thailand.
Prior to October 1, 2008, she was Manager, Downstream/Chemical Applications, Business Line Applications, Information Technology, ExxonMobil Business Support Centre Malaysia Sdn. Bhd. in Kuala Lumpur. Effective October 1, 2008, she was transferred to Upstream Business Services and thereafter appointed Business Services Director.
Executive Refinery DirectorB.Sc. (Hons.) Chemical Engineering, Leeds University, United Kingdom
Executive Retail Business Director B.Sc. (Hons) Accounting, University of East Anglia, Norwich, ACA (England & Wales)
Executive Treasury Director B. Econs. (Hons.), University of Malaya
13
AN
NU
AL R
EP
OR
T &
AC
CO
UN
TS
2008