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
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
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
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
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.