COMPANY PROFILE OF YETEBABERUT BEHERAWI PETROLEUM S. C. (YBP)

Introduction

Year of Establishment: May 2004

Authorized Capital: Birr 400 million

Area of specialization: Petroleum & Petroleum Products

Product Brand: BP/ Castrol

Products/Services: Distribution of Gasoline, Kerosene, Gas oil, Fuel Oil, Lubricants, Greases, Bitumen,  LPG and other Petroleum Products

Background of the Company

Yetebaberut Beherawi Petroleum S.C (YBP) was established in May 2004 by 21 founding shareholders with subscribed capital of birr 21 million. At present its paid up capital is

Birr 211 million. YBP is owned by Ethiopian Nationals, thus the equity capital is 100% local. The major factors that motivated the establishment of the company are

opportunities created for new entrants into the sub-sector of petroleum products distribution in the country. The major opportunities for engaging in the business of

petroleum distribution are:

• The Country's anticipated economic growth with the corresponding ever increasing consumption of fuels and lubricants;
• The government's support for the establishment of local oil companies; and
• The emerging favorable pre-conditions set up by the government to support the supply-demand chain in the energy sector

In establishing the company, the owners have committed themselves to strengthen the managerial and technical capability of the company by employing qualified managerial

and technical personnel as well as by introducing systems that enable the company to efficiently and effectively handle its operation. To attain the above objectives the

strategies to be followed will include providing efficient and reliable customer services, utilizing modern distribution and service facilities, strengthening the marketing wing of

the company, introducing productivity improvement schemes, introducing a computer-aided management information system, establishing standards for enhanced quality

services. At present YBP holds a market share of 12.4% (all ground fuels and lubricants in retail and commercial business lines) of the major oil companies which makes it the

fourth major petroleum company in the country.

Products

Fuels: The fuel petroleum products distributed by the company are mainly intended to focus on the

transport sector and consumers. Now, YBP dispenses the following products to its esteemed

customers:

 Gasoline

 Kerosene

 Gas Oil

 Furnace oil

Ethiopian Petroleum Supply Enterprise carries out procurement of all fuel products which are under the direct control of the government through competitive international

tenders and supply to the oil industry members. Lubricants: BP/Castrol lubricants and greases are supplied by YBP to the market. The main reason for selecting BP as our

business partner is to market quality lubricants. YBP has made an exclusive business agreement with BP to sell BP/Castrol products in Ethiopia and has imported and

marketed BP Lubricants and Greases for the last thirteen years. The lubricants are further grouped into industrial and automotive lubricants. These categories of lubricants

are packed in different type and size, varying from as high as a drum size (208 liters) to a package of half a liter. Bitumen and LPG: YBP has started distributing LPG in 2015

and bitumen in 2016. Two thousand 4.5kg capacity LPG cylinders were purchased and distributed to customers. It is in the plan to import different sizes of bottles as the

foreign currency is available. Bitumen penetration grades of 60/70, 80/100 and 85/100 that are suitable for road construction and asphalt pavements were imported and sold

to customers. Fuel Stations: YBP fuel stations are generally composed of the following three categories:

 Truck Stations,

 Service Stations, and

 Filling Stations

In order to meet its sales targets, YBP planned to reach a distribution network of 127 fuel stations by the end of fiscal year 2018/19. Currently, 113 stations are operational

across the country and YBP plans to continue expanding its retail outlets mainly company owned stations further more in the future also as fuel stations are the means to its

core business.