OPPORTUNITIES

Impending deregulation of the downstream Petroleum sector should result in improved margins

Menj Oil has a Market leading infrastructure (in terms of Jetty size and storage capacity)

Highly nimble organizational structure

Menj Oil has Alliances with leading international Petroleum Products suppliers

THREATS

Competition from established players (i.e. the Major Oil Marketers) is formidable

The petroleum sector is exposed to significant political/ regulatory risks (given the recent wave of policy changes)

Potential difficulty in accessing new loans or refinancing existing ones

Business Model

Focus on 3 key drivers of shareholder value:

• Maximize gross profit margin

– Order in large quantities to obtain bulk order discounts and amortize delivery charges over more units
– Skew product mix, where possible, toward higher margin products & services
– Exploit reference pricing potential.

• Minimize working capital requirements (ideally negative w.c.)

– Minimize days' inventory held
– Maximize trade credit from suppliers
– Obtain overdraft facility to fund 50% of inventory

• Maximize revenue per location

– Maximize number of builder/trade accounts per location
– Maximize wallet-share of each buyers' spending