Statement from ENOC

At their regular meeting, the Board of Directors of ENOC reviewed the Annual Report of the company and its subsidiaries. The meeting evaluated the financial performance of the company in 2010 compared with year 2009 and the company’s operations in the first quarter of 2011, as well as the progress of ENOC’s various operations in retail and refining and its commercial projects. 

“The meeting discussed the performance of the industrial and the commercial projects related to the development and maintenance of ENOC’s refinery in Jebel Ali, and the terminals projects that supply ENOC & EPPCO service stations with fuel, as well as the Dubai International Airport with jet fuel.

“As per the Annual Report, during 2010 and the first quarter of 2011, ENOC recorded positive results and achieved most of its business objectives. However, due to the rise in price of fuel in the international markets, the company had to internally meet the cost of providing fuel at subsidized rates in the local market, valued at AED1.5 billion during 2010. 

“Also based on the financial review of Q1 2011, it is expected that during full year 2011, ENOC will have to meet an additional AED 2.7 billion internally to cover the fuel subsidies offered locally. This arises from the difference in the increasing price of petrol sourced from international markets and ENOC’s fixed sale price at its stations. 

“The Board of Directors underscored the commitment of ENOC to continue to invest in strategic projects to promote energy supply security and contribute to overall social and economic welfare.”