TECHNO OIL LIMITED

2017 MID - YEAR REPORT

ON

FUEL DEPOT OPERATIONS

SUBMITTED BY: OJENEYE,Samuel Babatunde

DATE: 21ST JULY 2017

 2017 GOALS AND OBJECTIVES AND MID - YEAR ACHIEVEMENTS
S/n Goals and Objectives
1 To sell 2.1million litres of fuel
from the terminal per day.
2 To maintain 20 functional bulk
fuel customers with minimum
daily sales volume of 500,000Ltrs
3 To provide management with
quarterly report of all activities
done within the period to enable
management decision taking.
4 To provide competitive information
of sales/operations of other depot
and proffer ways and means to
surpass them.
5 To have zero accident throughout
the year.
Achievements
YTD performance of 143,723,136Litres
Daily performance of 1,197,693Litres
The quarterly reports are been sent as
at when due.
Informations relating to pricing,product
receipt,storage and trucking of the other
depot are been highlighted for
managements decision taking.
An accident was recorded in the period
in view.
Remarks
57% Achievement
PMS(90.4%), AGO(0.1%),DPK(9.5%)
Continuous effort is made at
improving on the figure through
improved service delivery.
Continuous Exercise
*Swift Oil allocate product to few
bulk buyers.
*Bovas loads mainly to their stations.
*Swift deploy two receiving lines
during receipt operations.
Not achieved.
 2017 MID - YEAR SALES REPORT 2017 SALES VOLUME
DESCRIPTION PMS AGO DPK TOTAL 160,000,000
January 18,988,915 137,277 780,540 19,906,732 140,000,000
120,000,000
February 5,729,714 29,426 3,023,210 8,782,350 100,000,000
March 29,178,627 10,074 2,891,995 32,080,696 80,000,000
2017
60,000,000
April 30,129,488 0 42,500 30,171,988 40,000,000
May 23,689,457 0 3,500,000 27,189,457 20,000,000
0
June 22,243,730 0 3,348,183 25,591,913 PMS AGO DPK Total
TOTAL 129,959,931 176,777 13,586,428 143,723,136
3 YRS SALES VOLUME COMPARISON
THREE MID - YEARS SALES REPORT COMPARISON 250,000,000
DESCRIPTION 2015 2016 2017 200,000,000

PMS 212,941,440 150,194,382 129,959,931 150,000,000

PMS
AGO
AGO 77,000 8,400 176,777 100,000,000 DPK
DPK 17,265,568 3,934,207 13,586,428 50,000,000 TOTAL

TOTAL 230,284,008 154,136,989 143,723,136 0

2015 2016 2017

THREE MID - YEARS SALES REALISATION COMPARISON 3 YRS REALISATION

DESCRIPTION 2015(N) 2016(N) 2017(N) 25,000,000,000

PMS 18,049,023,333.70 16,812,914,452.40 17,820,415,018 20,000,000,000

PMS
AGO 0 0 41,188,020 15,000,000,000
AGO
10,000,000,000
DPK 1,646,312,068 405,355,758 2,569,072,395 DPK
5,000,000,000 TOTAL
TOTAL 19,695,335,401.70 17,218,270,210.40 20,430,675,433
0
2015 2016 2017
2017 MID - YEAR REPORT ON PRODUCTS DISPATCH 2017 MID - YEAR DISPATCH
DESCRIPTION PMS AGO DPK TOTAL 160,000,000

January 21,604,076 166,700 844,000 140,000,000

120,000,000
February 5,583,186 10,000 1,268,376 100,000,000
80,000,000
March 28,660,191 0 4,435,499 60,000,000
April 27,586,255 0 191,996 40,000,000
20,000,000
May 26,971,836 0 3,467,500 0
PMS AGO DPK TOTAL
June 22,243,730 0 3,290,571
Total 132,649,274 176,700 13,497,942 146,323,916
3MID - YEARS DISPATCH COMPARISON
250,000,000

3 MID - YEARS DISPATCH COMPARISON 200,000,000

DESCRIPTION 2015 2016 2017 150,000,000 PMS

AGO
PMS 209,742,721 159,657,999 132,649,274 100,000,000 DPK

AGO 70,600 9,600 176,700 50,000,000

FUELS

DPK 17,046,522 6,453,019 13,497,942 0

2015 2016 2017
TOTAL 226,859,843 166,120,618 146,323,916
 2017 MID - YEAR RECEIPT REPORT VESSEL RECEIVED IN THE FIRST HALF YEAR OF 2017
PMS RECEIVED MID - YEAR 2017
S/n DESCRIPTION DATE NAME OF VESSEL BLF(MT) RF(MT) RF(LTR) TOTAL RF(ltr) %VAR.
35,000.00
1 PPMC 1/6/2017 Sea Grace 10,039.73 10,039.95 13,469,036 0.00219 30,000.00
2 PPMC 1/24/2017 Sea Grace 9,990.19 9,978.14 13,511,792 -0.1206
25,000.00
TOTAL PMS RCVD IN JANUARY 20,029.92 20,018.09 26,980,828 26,980,828 -0.0591
3 PPMC 3/9/2017 Sea Grace 10,468.37 10,408.90 14,219,661 -0.5681 20,000.00 PMS
4 PPMC 3/22/2017 Sea Grace 10,716.63 10,687.51 14,577,539 -0.2717 15,000.00 DPK
5 PPMC 3/31/2017 Sea Adventurer 9,913.92 9,884.82 13,317,779 -0.2935 AGO
TOTAL PMS RCVD IN MARCH 31,098.92 30,981.23 42,114,979 42,114,979 -0.3784
10,000.00
6 PPMC 4/11/2017 Sea Grace 10,599.45 10,558.44 14,294,379 -0.3869 5,000.00
TOTAL PMS RCVD IN APRIL 10,599.45 10,558.44 14,294,379 14,294,379 -0.3869
0.00
7 PPMC 5/3/2017 Sea Grace 7,909.18 7,940.29 10,863,695 0.39334 JAN FEB MAR APR MAY JUN TOTAL
8 PPMC 5/12/2017 Princess Oge 11,950.48 11,947.32 16,410,480 -0.0264
9 PPMC 5/30/2017 Princess Oge 11,486.45 11,497.18 15,530,534 0.09341
TOTAL PMS RCVD IN MAY 31,346.11 31,384.79 42,804,709 42,804,709 0.1234
10 PPMC 6/23/2017 Ungieshi 7,475.72 7,448.49 10,332,650 -0.3642
TOTAL PMS RCVD IN JUNE 7,475.72 7,448.49 10,332,650 10,332,650 -0.3642 VARIANCE ANALYSIS
TOTAL PMS RCVD MID - YEAR 2017 100,550.12 100,391.04 136,527,545 136,527,545 -0.1582
0
11 DPK 1/25/2017 Amif 5,084.35 5,091.01 6,404,519 0.13099 -0.2
Amif 8,070.60 8,048.56 10,128,201 -0.2731 -0.4
TOTAL DPK RCVD MID - YEAR 2017 13,154.95 13,139.57 16,532,720 16,532,720 -0.1169 -0.6 PMS
-0.8 AGO
3 YEARS COMPARISON OF VESSEL RECEIVED IN MID - YEARS VARIANCE ANALYSIS -1 DPK
-1.2 STANDARD
DESCRIPTION 2015 2016 2017 2015 2016 2017
-1.4
Number of vessels (PMS) 16 12 10 PMS -0.29 -1.43 -0.158
-1.6
Total BLF(MT) - PMS 222,218.96 142,639.97 100,550.12 DPK -0.29 -1.43 -0.117 2015 2016 2017
Total RF(MT) - PMS 221,220.84 142,493.49 100,391.04 STANDARD -0.35 -0.35 -0.35
Number of vessels (DPK) 2 1 1
Total BLF(MT) - DPK 9,955.75 4,929.03 13,154.95
Total RF(MT) - DPK 9,927.18 4,858.75 13,139.57
% Var. - PMS -0.29 -1.43 -0.158
% Var. - DPK -0.29 -1.43 -0.117
 MAINTENANCE REPORT
S/n Failed Equipment Causes of failure Effect Resolution
1 Loading arm * Broken Vacuum Breaker arm not dispensing The failed items were replaced
*Failed seal on swivel leakage
*Damaged O - Ring leakage

2 Product Pump * Failed mechanical seal leakage Mechanical seal replaced

* Air lock No flow Removal of the locked air

3 * Blocked Y - strainer mesh Debris in the pipeline Low flow rate Cleaning of strainer

4 Load Computer *Error Message No flow Message cleared

*Faulty Cards System won't come up Faulty card replaced

NO TOTAL DOWN TIME WAS RECORDED IN THE PERIODS IN VIEW WHAT WE HAVE WAS EQUIPMENT DOWNTIME
 2017 MID - YEAR OPERATIONS / LOGISTICS EXPENSES
DESCRIPTION JAN FEB MAR APR MAY JUN TOTAL
BARGES AND TUG BOATS 7,140,000 1,690,000 1,344,000 2,289,000 2,491,000 1,144,500 16,098,500 60,000,000
NAVY 290,000 100,000 200,000 200,000 200,000 100,000 1,090,000
NPA TRAFFIC / WATER POLLUTION 80,000 40,000 80,000 80,000 80,000 40,000 400,000 50,000,000
LABORATORY ANALYSIS OF SAMPLES 195,300 123,900 247,800 247,800 247,800 123,900 1,186,500
PPPRA INSPECTORS TEAM 450,000 285,000 570,000 570,000 570,000 285,000 2,730,000 40,000,000 EXPENSES ON LOGISTCS
D - MARINE 0 0 0 0 0 0 0
MARINE POLICE 20,000 10,000 20,000 20,000 20,000 10,000 100,000 30,000,000 EXPENSES ON DEPOT
NOSDRA 30,000 15,000 30,000 30,000 30,000 15,000 150,000 OPERATIONS
CUSTOMS 100,000 50,000 100,000 100,000 100,000 50,000 500,000 20,000,000
TOTAL EXPENSES
DPR 240,000 140,000 280,000 280,000 280,000 140,000 1,360,000
PILOT 100,000 50,000 100,000 100,000 100,000 50,000 500,000 10,000,000
FENDERS 860,000 640,000 1,034,000 0 0 0 2,534,000
LABOURERS 30,000 30,000 60,000 60,000 60,000 30,000 270,000 0
DEPOT OPERATIONS 3,039,394 4,060,000 4,976,984 4,396,163.05 3,630,445.57 4,688,896.09 24,791,883 JAN FEB MAR APR MAY JUN TOTAL
TOTAL 12,574,694 7,233,900 9,042,784 8,372,963 7,809,246 6,677,296 51,710,883

3 YEARS LOGISTICS / DEPOT OPERATIONS EXPENSES COMPARISON 80,000,000

70,000,000
DESCRIPTION 2015 2016 2017 60,000,000

EXPENSES ON LOGISTICS 53,199,500 31,873,068 29,490,504 50,000,000

40,000,000
TOTAL EXPENSES
EXPENSES ON DEPOT OPERATIONS 23,479,878 22,410,458 22,220,737 30,000,000
20,000,000
TOTAL EXPENSES 76,679,378 54,283,526 51,711,241 10,000,000
0
2015 2016 2017
 COMPETITIVE INFORMATIONS

1 Majority of the stake holders allocate their products to fewer bulk buyerswhile Techno's strategic is an open market
in which almost all the customers are bulk buyers.

2 BOVAS had 33 company owned retail stations nationwide and hence most of their loading operations is to their
retail outlets.

3 All the depots within our axis, except INDEX and CHISCO, had truck parks big enough for the statutory minimum of
50 trucks per holding bay.

4 Chisco Energy is yet to commence operation.

5 Only Techno Oil had floating roof installed on the PMS storage tanks as stipulated by the regulators.
CHALLENGES AND RECOMMENDATIONS
CHALLENGES RECOMMENDATIONS
1 High negative variance from trucking out operations * Perform integrity and leak test on storage tanks
especially on PMS * Calibrate the expired storage tank
* Install Authomatic tank gauging for more accurate measurement.
* Make price competitive so that storage could be emptied
on time to reduce evaporative losses.

2 High Cost of Logistics and Operation Expenses * Remove the wreck at the jetty to eliminate expenses on
hiring of barges.
* Intensify efforts on preventive maintenance to reduce
costs of maintenance.

3 Backlog of SAGE input Get a dedicated staff whose responsibility will be inputting
data into SAGE.

4 Delay in getting customers Authorisation * Access bank should be insttructed to speed up their
process as transfer to them from other banks is difficult.

5 Long time interval between seeking for approval software communication for approval could be adopted,
and getting release for a task.