Published: 04 October 2019

Government-owned oil company, Petrotrade declared a $1.56 million dividend at the end of its 2018 financial year after managing to improve its profitability during the period, the company said on Thursday.

The fuel retailer said its net profit during the period jumped 41 percent to $5.2 million on the back of increased sales volumes which went up to 140.1 million litres from 110 million in 2017.

"Petrotrade revenues increased from $136.8 million in 2017 to $180.6 million in 2018. This was a 32 percent increase," the firm said.

The company said despite economic challenges the country is facing, it sees itself weathering the storm and remaining viable.

Demand for fuel remained high and above supply, which was constrained by foreign currency shortages, Petrotrade said.

"The possibility of substitutes for main fuels is only possible in the very long term in the form of electric vehicles," Petrotrade said.

The parastatal said it was looking at expanding its liquefied petroleum gas infrastructure so that it is able to effectively compete in that fuel segment.

Petrotrade said it is in the process of developing four new service stations to add to the 30 that are operating across the country.

The firm also supplies fuel to 31 dealers across the country and is looking at widening its market as the country has over 600 fuel selling stations.

Government has already announced intentions to partially privatise the company, in a move that is expected to facilitate its growth and expansion.

Officials in the Ministry of Energy and Power Development say the process of finding a suitable international investor is underway.

- New Ziana

You might also want to read this

• Petrotrade in $3,75m tax profit
• Petrotrade profit jumps 64 percent, vows not to fail