The petroleum business generates quick and substantial Return on Investment (ROI):

Unlike many other businesses, the establishment of Oil Company provides flexibility on scale of start up operation. Dalol Oil S.C. aims to finalize sales of shares in maximum of six months and immediately proceed to construct its first phase of Company Owned Service Stations, which will also be finalized in six months. The target date to officially resume business operation is Sept 2010.

The margin set by the Ethiopian government on lubricants and greases is attractive as compared to the slim margin on fuels. Bitumen, Aviation and LPG business also deliver a lucrative margin. In addition to the above margins to be generated from distribution of petroleum products, Dalol Oil S.C. will also aggressively be engaged in Non Fuels Related (NFR) businesses to optimally utilize all its facilities in the world class services stations the company plans to build throughout the country.

Nature and size of demand for petroleum products

Petroleum is one of the most traded items in the world. Petroleum is a necessity product and the nature of its demand is inelastic. Unlike other businesses whose demand is impacted by price and other economic variables, the consumption of petroleum products continues to increase even in the face of any economic slow downs. A case in point is the increase in the country’s consumption of petroleum products during the period from January to June 2009 which showed an increase of 7% over last year same period. From investment point of view, whilst many other business sectors are impacted by the global financial crisis and showed a declining business trend, companies engaged in the petroleum business in Ethiopia have continued to generate a significant rate of return on investment giving investors’ confidence to sustain the current global financial shocks.

Petroleum business has minimal risk on investment

The nature of investment on petroleum business is such that once the network of service stations are build, the amount of capital investment on fixed assets will be minimal whilst a significant proportion of investors’ capital will be circulating on stock of petroleum products. Stock and inventory being the next liquid form of asset next to cash, being engaged in the sectors provides investors with flexibility to diversify business. In addition, Oil Companies are also enjoying a 15 days credit on supply of fuels from Ethiopia Petroleum Enterprise (EPE), an incentive the Ethiopian government has provided to facilitate a smooth distribution of the products across the country. From control point of view, the petroleum business is a safe business for investors as costing and pricing mechanisms are highly transparent and automated. Dalol Oil S.C. also plans to invest on required systems and IT infrastructure to ensure that there will be no control gaps in the operation of the business.
 

Invest in Dalol Oil S.C. and there is something in it for you

 If you are one of the first early buyers of share during the first two months of sales of shares, and provided that you have purchased 100 shares and above and Invest in full by October 31st 2009, you will be eligible to win a chance of being Dealer for DALOL OIL Company Owned Service Stations. Are you an entrepreneur with the qualification and enthusiasm to win a chance to operate as a self-employed Dealer? If your answer is yes, Dalol Oil S.C. is for you.

If you would like to invest your money on venture that provides you and your family with the financial protection and stability in the face of difficult economic times, Dalol Oil S.C. is an investment for you.

Finally if you are wondering about inflation and what to do with the level of capital you have at hand, Dalol Oil S.C. is your company giving you the best out of your investment whilst leaving you to focus on other personal activities.
 

Dalol Oil Share Company deploys a world class management expertise

The following are areas of strength which makes Dalol Oil S.C. to be a highly successful company in a short period of time:
Founders of the company are visionary and have a wealth of local and international firsthand work experience in Multinational Oil Companies such as Shell and ExxonMobil.

With regard to lubricants and greases, Dalol Oil S.C. will carry an international brand that meets high quality standards. When found appropriate, Dalol Oil S.C. partners and/or joint ventures with international companies engaged in the Oil Business and related services so as to gain synergy and competitiveness.

We strive to optimize on all our investments by effectively utilizing 100% of our network facilities and also carefully investing on key strategic locations.
We will not be limited with the traditional ways of doing the petroleum business by solely focusing on fuel products. We will make all our service stations a one stop shopping center for our motorists by providing a range of non fuels related businesses with excellence in customer service.