ESSO MALAYSIA BERHAD (Company No.3927-V) · C C O U N T S 2 0 0 4 ESSO MALAYSIA BERHAD 4 Safety,...
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ESSO MALAYSIA BERHAD (Company No.3927-V) (Incorporated in Malaysia) An ExxonMobil Subsidiary in Malaysia
Transcript of ESSO MALAYSIA BERHAD (Company No.3927-V) · C C O U N T S 2 0 0 4 ESSO MALAYSIA BERHAD 4 Safety,...
ESSO MALAYSIA BERHAD(Company No.3927-V)
(Incorporated in Malaysia)An ExxonMobil Subsidiary in Malaysia
Financial Highlights
Chairman’s Statement
Penyata Pengerusi
Five-Year Summary Charts
Board of Directors /Lembaga Pengarah
Profile of Directors
Corporate Information
Corporate Governance
Board Audit Committee Report
Report of the Directors
Report of the Auditors
Financial Statements
Information on Stockholdings
List of Properties Owned
Notice of Annual General Meeting
Statement Accompanying Notice ofAnnual General Meeting
Notis Mesyuarat Agung Tahunan
Penyata Yang Dilampirkan BersamaNotis Mesyuarat Agung Tahunan
Cover Picture:From refinery to distribution terminals to service stations, Esso Malaysia Berhad strives to provide high quality petroleum products to meet consumer needs while maintaining its excellent safety, health and environmental performance.
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Contents
EMB continued to help the underprivileged and needy in the communities where it operates. EMB management, employees and family members contributed time and effort to implement various community projects around the country in 2004.
The Company’s safety performance continued to be recognised by the Malaysian Society of Occupational Safety and Health (MSOSH). Port Dickson Refinery was awarded an MSOSH Gold Award. Two of EMB’s distribution terminals won MSOSH Gold Awards for the third consecutive year while a third terminal received a Silver Award.
EMB’s distribution network has won a number of awards from ExxonMobil for outstanding and sustainable safety performance, including an ExxonMobil Refining and Supply Leadership Gold Award for achieving 7 consecutive years without any lost time injury.
2004 2003 %RM Million RM Million Change
Revenues 6,198 4,774 30
(Loss) / profit after taxation (24) 57 N/A
(Loss) / Earnings per ordinary stock unit (sen) (9) 21 N/A
Gross dividend per ordinary stock unit (sen) 12 12 -
Total assets employed 1,974 1,839 7
Total shareholders’ funds 520 568 (8)
Sales volume 98 97 1(thousands of barrels per calendar day)
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
Shareholders participated actively in the question and answer session at the Annual General Meeting.
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The Annual General Meeting provided the opportunity for shareholders to dialogue with the Board to obtain a better understanding of the Company’s operations and performance.
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Chairman’s StatementChairman’s Statement
ESSO MALAYSIA BERHADA
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On behalf of the Board of Directors, I am pleased to report on the financial and operating performance of the Company for the year ended
December 31, 2004.
Summary of 2004 Financial Results
2004 was a challenging year for Esso Malaysia Berhad (EMB). While the Company turned in good operating performance, EMB’s financial results were significantly impacted by the considerable increase in crude costs over the course of the year.
Driven by the country’s strong economic growth, EMB’s sales increased to 98 thousand barrels per day (kbd). Revenues increased by 30% to RM6,198 million mainly from higher prices. The retail sector recorded healthy growth although the industrial business was affected by intense competition. We continued to expand and upgrade our service station network, adding four more stations during the year. At the Port Dickson Refinery, a planned 25-day maintenance shutdown was completed on schedule and steps were taken to improve plant operating reliability and efficiency. Refinery throughput for the year was 75 kbd, which, after adjusting for the impact of the planned shutdown, was higher than the prior year.
Crude costs rose considerably across 2004, peaking at more than US$50 a barrel in the fourth quarter, and averaging about 35% higher across the year than in 2003. The rising crude costs impacted refining margins, and negative price lag effects under the workings of the Automatic Pricing Mechanism significantly affected profitability in the controlled petroleum products sector. The higher prices also flowed through into higher energy costs for refinery operations. Thus, despite our good operating results, for the full year 2004 EMB reported an after tax loss of RM24 million compared to a profit of RM57 million in 2003, and year-end debt increased to RM766 million compared to RM573 million a year earlier.
Despite this loss, which reflects the impact of price movements, management remains confident in the underlying performance of our business and in the Company’s competitive position in a growing economy. In recognition of this and of our desire to provide a steady return on shareholder investments, the Board proposes a dividend for the year ended December 31, 2004 of 12 sen less Malaysian income tax at 28% per ordinary stock unit. This matches the dividend paid for the 2003 fiscal year.
Robert FisherChairman
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Review of Operations
2004 was a busy year for the Port Dickson Refinery. In September, the refinery successfully shutdown for 25 days for planned maintenance work that included inspection and certification of registered equipment by the authorities. In spite of a significant non-regular workforce deployed during the exercise, the shutdown was completed without any lost time injury. Strong emphasis and continuous focus on safety were key elements of this success. We also took the opportunity to install and commission several projects to help improve plant operating efficiency. These included cooling tower improvements for better gas recovery and energy efficiency. In addition, a new catalyst was introduced into one of the refinery process units to enhance motor gasoline yields.
Overall, plant operations were smooth with improved reliability achieved during the year. With good margins earlier in the year, crude throughput was maximised for opportunistic runs. As a result, refinery throughput for 2004 averaged 75 kbd, which after adjusting for the impact of the planned maintenance shutdown, was higher than in 2003.
The government has informed the oil industry of its intention to adopt Euro-2M specifications for motor gasoline and diesel in the near future, as part of the country’s plan to improve air quality. The Port Dickson Refinery is well positioned to manufacture petroleum products meeting the new specifications when regulations come into force.
In the marketing business, competition remained intense. However, the growth in the retail business was strong, supporting the addition of high quality service stations to the network. Four new stations were added during the year, two of which were On the Run stations incorporating the new ExxonMobil worldwide convenience store design projecting the Fast, Fresh and Friendly concept. Building on an initiative started in 2003, several stations were converted to the new dealer model, where aggressive and highly motivated dealers are appointed and provided with working capital and training to enable them to operate the stations to the highest standards.
EMB continued to high-grade our service station network with selective investments in high growth areas through a disciplined network planning process. At the same time,
to maximise the efficient use of capital, a multi-year programme to divest idle land sites that no longer meet our size or potential volume criteria was continued.
Following the merger of Exxon Corporation and Mobil Corporation in 1999, operations were streamlined and synergies created across the Esso and Mobil organisations in Malaysia. This process continued in 2004. The cross acceptance programme that enables Esso and Mobil fleet cards to be used at each others’ stations was completed. In the coming year, card cross acceptance efforts will be extended to Esso and Mobil loyalty cards to capitalise on the enlarged combined service station network, and security chip credit card readers will be installed at service stations in support of the government’s effort to enhance the security of credit card transactions.
EMB’s industrial business is going through a period of low margins driven by intense price competition. During the year, EMB embarked on a new programme to appoint exclusive “jobbers” to supply petroleum products, mainly diesel and motor gasoline, to unbranded service stations nationwide. Competition in the liquified petroleum gas business remained intense with market players aggressively attracting dealers and growing volumes through various incentive schemes.
The Company’s lubricants and specialties business continued to grow with increased focus on selling automotive lubricants at service stations through various promotional activities. Lubricants were among the most popular items redeemed under the Xchange loyalty card points redemption programme. The marine lubricants business also continued to grow following efforts last year to pursue opportunities in the offshore oil and gas sector. EMB commenced distribution of asphalt from the Port Klang West Port terminal, opening up new asphalt business opportunities in the northern part of Peninsular Malaysia.
EMB remains focussed on efforts to reduce operating costs. Costs in 2004 were however higher than the previous year due to maintenance and repair expenditure incurred for the planned refinery shutdown and one time expenses associated with streamlining the organisation into a more effective and efficient structure.
During the year EMB invested RM74 million, mainly for the acquisition of service station sites and the construction of service stations.
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Safety, health and environmental performance continue to command the highest priority. At the Port Dickson Refinery, the planned maintenance shutdown was completed without a lost time injury. Special safety, health and environmental protection programmes were implemented prior to and during the shutdown, including special training for the large transient contractor workforce. Plant and terminal operations were flawless throughout the year. EMB's distribution network recorded a total of 7 consecutive years without any lost time injury, earning them an ExxonMobil Refining and Supply Leadership Gold Award for outstanding and sustainable safety performance. The Company's safety performance was again recognised by the Malaysian Society of Occupational Safety and Health (MSOSH) with the Refinery winning an MSOSH Gold Award. Two of EMB's distribution terminals won MSOSH Gold Awards for the third consecutive year.
EMB has a long-standing tradition of giving back to the communities in areas where it operates. Our support takes many forms, one of the most visible being our Community Pro jects Programme. Through implementing various projects around the country in 2004, EMB management, employees and family members continued to work together to contribute time and effort to make a difference and help the underprivileged and needy in the communities in which they live and work.
Business Outlook
The country’s strong economic growth will continue to fuel demand for petroleum products, and the outlook for the retail business remains promising. However, the industrial business will likely continue to be challenged by intense price competition. With continued crude price volatility, margins will remain subject to wide swings, particularly for the controlled petroleum products sector given the price lag effects under the workings of the Automatic Pricing Mechanism. Also, until crude prices stabilise or decline, the relatively high debt levels seen in 2004 may continue.
In this business environment, EMB will continue to focus on those aspects of the business that it can control through aggressive cost management and selective investments in high return projects. Our strong fundamentals, good operating performance and effective cost structure leave us well positioned to compete profitably over the long haul.
Board Matters
Mr. James A. Hall, Executive Financial Director, accepted an assignment with Exxon Mobil Corporation and resigned from the Board effective August 10, 2004. I would like to thank Mr. Hall for his many contributions to EMB during his tenure as a Director. The Board appointed Encik Zain C. Willoughby as Executive Financial Director effective the same date. I welcome Encik Zain to the Board and look forward to working more closely with him in his new capacity.
On behalf of the Board, I would also like to thank our employees for their continued hard work and dedication. The petroleum refining and marketing business remains challenging and the Company's success is fully dependent on the skills, abilities and commitment of each employee to overcome these challenges. I also express my appreciation to our shareholders, dealers and customers for their continued support of Esso Malaysia Berhad.
Robert FisherChairman
February 24, 2005
Bagi pihak Lembaga Pengarah, saya dengan sukacitanya membentangkan laporan kewangan dan prestasi Syarikat bagi tahun berakhir 31
Disember 2004.
Ringkasan Keputusan Kewangan 2004
Tahun 2004 merupakan tahun yang mencabar bagi Esso Malaysia Berhad (EMB). Walaupun prestasi operasi Syarikat baik, keputusan kewangan EMB amat terjejas kerana kenaikan ketara kos minyak mentah di sepanjang tahun.
Dengan pertumbuhan ekonomi negara yang kukuh, jualan EMB meningkat kepada 98 ribu tong sehari (rts). Berikutan kenaikan harga, pendapatan pula meningkat 30% kepada RM6,198 juta. Sektor runcit mencatatkan pertumbuhan yang sihat walaupun perniagaan industri terjejas akibat persaingan yang hebat. Sepanjang tahun, kami terus mengembangkan dan menaik taraf rangkaian stesen minyak kami dengan menambah empat stesen lagi. Di Loji Penapisan Port Dickson, penutupan loji selama 25 hari untuk kerja-kerja penyenggaraan berjaya dijalankan mengikut jadual dan langkah-langkah telah diambil untuk memperbaiki keboleharapan operasi loji. Pengeluaran dari loji penapisan bagi tahun ini adalah sebanyak 75 rts. Setelah mengambil kira kesan penutupan yang di jadualkan, pengeluaran tahun ini adalah lebih tinggi dari tahun sebelumnya.
Kos minyak mentah meningkat tinggi sepanjang tahun 2004, dan telah mencapai tahap tertinggi melebihi US$50 setong pada suku tahun keempat. Pada keseluruhannya, ia adalah 35% lebih tinggi dari tahun 2003. Kenaikan kos minyak mentah telah menjejaskan margin penapisan, manakala kesan negatif harga susulan dari mekanisma pengiraan di bawah Mekanisma Harga Automatik telah menjejas teruk keuntungan di sektor produk petroleum terkawal. Kenaikan harga juga telah menyebabkan kos tenaga operasi penapisan meningkat. Dari itu, meskipun keputusan operasi baik, EMB mencatatkan kerugian selepas cukai sebanyak RM24 juta bagi tahun 2004 berbanding keuntungan sebanyak RM57 juta bagi tahun 2003. Jumlah hutang pada akhir tahun meningkat kepada RM766 juta berbanding RM573 juta setahun sebelumnya.
Walaupun mengalami kerugian disebabkan pergerakkan harga, pihak pengurusan terus yakin dengan prestasi asas perniagaan dan daya saing Syarikat dalam ekonomi yang berkembang. Dengan pengiktirafan ini dan hasrat kami untuk memberi pulangan yang stabil kepada pelaburan pemegang saham, pihak Lembaga telah mencadangkan
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Penyata PengerusiPenyata Pengerusi
Robert FisherPengerusi
dividen tahun berakhir 31 Disember, 2004 sebanyak 12 sen ditolak cukai pendapatan Malaysia sebanyak 28% bagi setiap unit stok biasa. Ini adalah sama dengan dividen yang dibayar pada tahun fiskal 2003.
Ringkasan Operasi
Tahun 2004 merupakan tahun yang sibuk di Loji Penapisan Port Dickson. Dalam bulan September, loji telah ditutup selama 25 hari untuk kerja-kerja penyenggaraan berjadual yang telah berjaya dilaksanakan termasuk pemeriksaan dan pengesahan di atas alat-alat yang berdaftar oleh pihak berkuasa. Kerja-kerja penutupan loji telah berjaya dijalankan tanpa sebarang kehilangan waktu kecederaan, walaupun ia melibatkan sebilangan besar pekerja sementara. Tekanan dan fokus yang berterusan kepada keselamatan adalah kunci utama kejayaan ini. Kami juga telah mengambil kesempatan ini untuk memasang dan melakukan beberapa projek untuk mempertingkatkan kecekapan operasi loji. Ia termasuk kerja-kerja menaik taraf menara penyejuk, bertujuan untuk meningkatkan perolehan gas dan kecekapan tenaga. Juga, mangkin yang baru telah
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di semua stesen juga telah siap. Pada tahun yang akan datang, usaha penerimaan silang ini akan diteruskan kepada kad loyalti Esso dan Mobil supaya gabungan rangkaian stesen minyak yang meluas dapat dimanfaatkan. Untuk menyokong usaha kerajaan dalam meningkatkan keselamatan bagi urusniaga kad kredit, kami akan memasang alat pembaca kad kredit dengan cip keselamatan di stesen minyak kami.
Perniagaan industri EMB kini mengalami keadaan margin yang rendah disebabkan saingan harga yang sengit. Dalam tahun ini, EMB telah memulakan program baru dengan melantik “jobbers” untuk membekal produk petroleum, terutamanya minyak diesel and gasolin kepada stesen minyak tidak berjenama di seluruh negara. Saingan hebat berterusan di dalam perniagaan gas petroleum cecair dengan pesaing pasaran menawarkan berbagai skim galakan kepada pengedar.
Perniagaan minyak pelincir dan produk khas terus maju dan Syarikat memberi tumpuan yang lebih kepada jualan pelincir automotif di stesen minyak dengan berbagai aktiviti promosi. Minyak pelincir merupakan antara barangan yang paling disukai di bawah program menebus mata bagi kad loyalti Xchange. Berikutan usaha tahun lepas dalam memburu peluang di sektor gas dan minyak luarpantai, perniagaan minyak pelincir marin terus meningkat. EMB juga telah mula mengedarkan asfalt dari pengkalan Pelabuhan Barat di Pelabuhan Klang dan ini membuka peluang baru dalam perniagaan asfalt di utara Semenanjung Malaysia.
EMB sentiasa memberi tumpuan dalam usaha-usaha mengurangkan kos operasi. Walau bagaimanapun, kos pada tahun 2004 lebih tinggi dari tahun sebelumnya disebabkan perbelanjaan penyenggaraan dan pembaikan yang dilaksanakan semasa penutupan berjadual loji penapisan dan juga perbelanjaan sekali berkaitan dengan usaha mengemaskini organisasi ke satu struktur yang lebih berkesan dan cekap.
Dalam tahun tersebut, EMB melabur RM74 juta, kebanyakannya untuk pembelian tapak-tapak dan pembinaan stesen minyak.
Prestasi keselamatan, kesihatan dan alam sekitar terus diberi keutamaan. Di Loji Penapisan Port Dickson, penutupan berjadual loji telah dijalankan tanpa mencatat sebarang kehilangan waktu kecederaan. Program khusus dalam keselamatan, kesihatan dan alam sekitar telah dilaksanakan sebelum dan semasa penutupan loji penapisan dan ini termasuk latihan khusus kepada
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pertama kali digunakan di salah satu unit pemprosesan untuk meningkatkan keluaran minyak gasolin.
Pada keseluruhan, operasi loji sepanjang tahun berjalan lancar serta dapat mencapai kebolehharapan yang lebih baik. Pada awal tahun, semasa pulangan margin agak baik, kami telah mengambil peluang meningkatkan pengeluaran. Dengan itu, purata pengeluaran penapisan pada tahun 2004 adalah sebanyak 75 rts, di mana setelah diambil kira penutupan loji untuk kerja-kerja penyenggaraan, adalah lebih tinggi dari tahun 2003.
Sebagai langkah untuk memperbaiki kualiti udara, industri minyak telah dimaklumkan oleh pihak kerajaan tentang tujuan untuk mengamalkan spesifikasi Euro-2M bagi minyak gasolin dan diesel dalam masa terdekat ini. Loji Penapisan Port Dickson sudah bersedia untuk mengeluarkan produk petroleum dengan spesifikasi baru sekiranya peraturan ini dikuatkuasakan.
Saingan terus hebat di dalam perniagaan pemasaran. Walau bagaimanapun, pertumbuhan kukuh dalam perniagaan runcit membolehkan kami menambah rangkaian stesen minyak berkualiti tinggi. Dalam tahun tersebut, kami telah menambah empat buah stesen baru, dimana dua darinya adalah stesen 'On the Run' yang menggabungkan rekabentuk baru kedai serbanika ExxonMobil seluruh dunia yang melambangkan konsep Cepat, Segar dan Mesra. Membina di atas inisiatif yang bermula pada tahun 2003, beberapa stesen minyak telah ditukarkan kepada model pengusaha baru, dimana pengusaha yang agresif dan berdaya tinggi telah dilantik dan dibekalkan dengan modal dan latihan untuk membolehkan mereka mengurus stesen dengan cemerlang.
EMB terus meningkatkan rangkaian stesen minyak dengan pelaburan terpilih di kawasan pertumbuhan tinggi melalui proses perancangan rangkaian yang b e r d i s i p l i n . P a d a m a s a y a n g s a m a , u n t u k memaksimumkan kecekapan penggunaan modal, program berbagai tahun diteruskan untuk melupuskan tapak-tapak yang tidak digunakan dan tidak dapat memenuhi kriteria dari segi saiz dan jualan yang berpotensi.
Berikutan dengan penggabungan Exxon Corporation dan Mobil Corporation dalam tahun 1999, operasi telah diperkemaskan dan beberapa sinergi telah diwujudkan di Esso dan Mobil di Malaysia. Proses ini berterusan dalam tahun 2004. Program penerimaan silang yang membolehkan kad kumpulan Esso dan Mobil digunakan
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telah meletak jawatan sebagai ahli Lembaga Pengarah berkuatkuasa 10 Ogos 2004. Saya ingin mengucapkan terima kasih kepada Encik Hall di atas sumbangan besar beliau kepada EMB semasa berkhidmat sebagai Pengarah. Berkuatkuasa pada tarikh yang sama, Lembaga Pengarah telah melantik Encik Zain C. Willoughby sebagai Pengarah Eksekutif Kewangan. Saya mengalu-alukan perlantikan Encik Zain dan berharap dapat bekerjasama dengan beliau dengan lebih rapat lagi dalam jawatannya yang baru.
Bagi pihak Lembaga Pengarah, saya juga ingin mengucapkan terima kasih kepada semua kakitangan kami di atas usaha gigih dan dedikasi yang berterusan. Perniagaan penapisan dan pemasaran petroleum akan terus mencabar dan kejayaan Syarikat untuk mengharunginya bergantung sepenuhnya kepada kemahiran, keupayaan dan komitmen dari setiap kakitangan. Saya juga ingin merakamkan penghargaan kepada pemegang-pemegang saham, pengedar-pengedar dan pelanggan-pelanggan di atas sokongan yang berterusan kepada Esso Malaysia Berhad.
Robert FisherPengerusi
24 Februari 2005
pekerja sementara yang begitu ramai. Operasi loji dan pengkalan berjalan dengan sempurna sepanjang tahun. Rangkaian pengedaran EMB mencatatkan 7 tahun berterusan tanpa kehilangan waktu kecederaan yang melayakkan mereka menerima 'ExxonMobil Refining and Supply Leadership Gold Award' untuk prestasi keselamatan cemerlang yang berterusan. Prestasi keselamatan Syarikat sekali lagi diiktirafkan oleh Persatuan Keselamatan dan Kesihatan Pekerjaan Malaysia (MSOSH) dengan loji penapisan memenangi Anugerah Emas MSOSH. Dua pengkalan pengedaran EMB juga memenangi Anugerah Emas MSOSH untuk tiga tahun berturut-turut.
Telah menjadi tradisi EMB untuk membantu masyarakat di mana ianya beroperasi. Kami membantu dengan bermacam cara dan yang paling ketara sekali adalah Program Projek Kemasyarakatan. Dengan melaksanakan berbagai projek di seluruh negara sepanjang tahun, pihak pengurusan, kakitangan dan keluarga EMB terus bekerjasama menyumbang masa dan tenaga untuk membantu insan yang kurang bernasib baik dan memerlukan di komuniti di mana mereka tinggal dan bekerja.
Prospek Perniagaan
Ekonomi negara yang kukuh akan terus menjana permintaan produk petroleum dan prospek perniagaan runcit terus cerah. Walau bagaimanapun, cabaran persaingan harga yang sengit dalam perniagaan industri mungkin berterusan. Dengan harga minyak mentah yang tidak menentu, margin akan terjejas, lebih-lebih lagi bagi sektor produk petroleum terkawal yang dilaksanakan di bawah Mekanisma Harga Automatik. Tahap hutang yang tinggi pada tahun 2004 mungkin berterusan selagi harga minyak mentah tidak stabil atau turun.
Dalam suasana perniagaan ini, EMB akan terus memberi tumpuan kepada aspek-aspek perniagaan yang boleh dikawal melalui pengurusan kos yang agresif dan pelaburan terpilih di dalam projek yang memberi pulangan yang tinggi. Dengan asas yang teguh, prestasi operasi yang baik dan struktur kos yang berkesan, kami berada di tahap yang baik untuk terus bersaing untuk memperolehi keuntungan dalam masa jangka panjang.
Perihal Lembaga Pengarah
Encik James A. Hall, Pengarah Eksekutif Kewangan, telah menerima tugasan dengan Exxon Mobil Corporation dan
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ESSO MALAYSIA BERHAD
REVENUES(NET OF GOVERNMENT DUTIES)RM MILLION
RM MILLION
PROFIT/(LOSS) AFTER TAX
100
80
6040
20
0
-20
-40
-60
-802000 2001 2002 2003 2004
Profit/(loss)after tax
120
% of revenues
2000 2001 2002 20040
500
1000
1500
2500
6,198
3000
3500
2000
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Five-Year Summary ChartsFive-Year Summary Charts
2003
SALES VOLUMETHOUSANDS OF BARRELSPER CALENDAR DAY
2000 2001 2002 2003 20040
10
20
30
40
50
60
70
80
90
78
93
THOUSANDS OF BARRELSPER CALENDAR DAY
REFINERY THROUGHPUT
2001 2002 20032000
140
160
180
200
0
10
20
30
40
50
60
70
80
90
75
58
80
2004
76
98
80
8
97100
ESSO MALAYSIA BERHAD
5000
23
181
4
(7)
0
57
11
(24)
5500
4,0004000
3,8394,1344500
4,774
6000
6500
98
0
CAPITAL EXPENDITURERM MILLION
0
20
40
60
80
100
120
140
180
160
200
SHAREHOLDERS’ INFORMATION
2000 2001 2002 2003 2004
Earnings / (loss) per ordinary stock unit (sen) 8.5 67.0 (2.8) 21.1 (9.0)
Gross dividend per ordinary stock unit (sen) 0 10 10 12 12
Dividend yield (%) 0.0 5.9 4.2 5.6 4.6
Share price (RM) - Highest 3.28 2.29 2.89 2.52 2.93- Lowest 1.44 1.39 1.90 1.78 2.33- Average 2.60 1.70 2.37 2.14 2.59
Number of employees at year-end 548 529 500 488 422
RM MILLIONFinanced by:
TOTAL ASSETS EMPLOYED
500
02000 2001 2002 2003 2004
Shareholders’ fund
1000
Taxes payable, provisions and others
2000
Trade payables
Notes payable and bank borrowings
1,635
1,847 1,799
1500
9
1,839
CAPITAL EXPENDITURERM MILLION
2000 2001 2002 2003 20040
20
40
60
80
100
120
140
180
60
160
62
200
55
174
73
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Mr. James A. HallResigned w.e.f. August 10, 2004Meletak jawatan berkuatkuasa 10 Ogos 2004
SEATED FROM LEFT TO RIGHTDUDUK DARI KIRI KE KANANY. Bhg. Dato’ Zainal Abidin PutihY. Bhg. Tan Sri Dato’ Dr. Syed JalaludinSyed SalimMr. Robert FisherChairman / PengerusiY. Bhg. Tan Sri Abdul Halim Ali
STANDING FROM LEFT TO RIGHTBERDIRI DARI KIRI KE KANANCik Rajabee Mohd YusoffCorporate Secretary / Setiausaha KorporatEncik Abu Hassan Seeni AbdulExecutive Retail Business Director /Pengarah Eksekutif Perniagaan Jualan RuncitEncik Zain C. WilloughbyExecutive Financial Director / Pengarah Eksekutif KewanganEncik Abu Bakar Siddik Che EmbiExecutive Refinery Director / Pengarah Eksekutif Penapisan
Board of Directors / Lembaga PengarahBoard of Directors / Lembaga Pengarah
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Profile of DirectorsProfile of Directors
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Robert FisherChairmanB.Sc. (Hons.) Chemical Engineering, Birmingham University, United Kingdom
Mr. Robert Fisher, aged 51, a British citizen, was appointed Director and Chairman of the Company on January 1, 2003. He started his career at the Esso Refinery, Fawley, in the United Kingdom in 1976 and held various technical and operational positions there, until 1982 when he was assigned to the Supply business in the United Kingdom, and later, in Europe. In 1989, he was assigned to Exxon Company U.S.A., in the Offshore Division of the Production Department in New Orleans. He returned to the United Kingdom in 1992 as Operations Manager in Esso Exploration and Production, U.K. Ltd. In 1993, he joined Esso Production Malaysia Inc., initially as Operations Manager within the Offshore Division of the Production Department, and subsequently as Natural Gas Manager. In 1998, he was appointed Executive Assistant to the Chairman of the then Exxon Corporation, before he became Vice President, New Business Development in the ExxonMobil Gas Marketing Company in December 1999. Prior to this assignment in Malaysia, he was the Executive Vice President, Upstream, ExxonMobil Saudi Arabia (Southern Ghawar) Limited.
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed SalimIndependent Non- Executive Director and Alternate Member to Y.Bhg. Tan Sri Abdul Halim Ali and Y.Bhg. Dato' Zainal Abidin Putih on the Board Audit CommitteeP.S.M., D.S.S.A., D.P.M.P., J.S.M. F.A. Sc., B.V.Sc., University of Punjab, M.Phil. and Ph.D., University of London D.Sc.,Honoris Causa, University of Hull, U. K., Honoris Causa, Soka University, Japan
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, aged 61, a Malaysian and a national science laureate, as well as a founder fellow of the Academy of Sciences Malaysia, was appointed Director of the Company on February 15, 2000. He had a long illustrious academic carrier in both University Malaya and University Putra Malaysia (UPM) before retiring as Vice Chancellor of UPM in 2001. He was responsible for transforming UPM to become one of the leading centres of higher education. As an accomplished academician, he has helped found many academic societies and associations, and has published over 350 papers in journals and proceedings in the fields of animal science, university management and education. For his meritorious career and services, he has received numerous awards, decorations and honours nationally as well as internationally. He retired from UPM in April 2001. He is also the Chairman of Bank Kerjasama Rakyat Malaysia Berhad, and more recently appointed as a Director of Capital Development Fund Board and TAFI Industries Berhad.
Y. Bhg. Tan Sri Abdul Halim AliIndependent Non-Executive Director and Member of the Board Audit CommitteeP.M.N., P.J.N., S.P.M.S., S.I.M.P., D.G.S.M., D.H.M.S., D.S.D.K., J.S.M., K.M.N.B.A. (Hons.), University of Malaya
Y. Bhg. Tan Sri Abdul Halim Ali, aged 61, a Malaysian, was appointed Director of the Company on May 22, 2001. Upon graduation from University of Malaya, he joined the Ministry of Foreign Affairs in 1966. After several domestic and foreign postings, he was appointed the Malaysian Deputy Permanent Representative to the United Nations in 1979. He was appointed Ambassador to Vietnam in 1982 and returned to Malaysia in 1985 to be Deputy Secretary General in the Ministry of Foreign Affairs before being appointed Ambassador to Austria. In 1991, he again returned to Malaysia to be Deputy Secretary General I in the Ministry of Foreign Affairs and in 1996 he was promoted to Secretary General. In July 1998, he was appointed Chief Secretary to the Government, the highest ranking civil service post in the country and was responsible for overseeing and coordinating the policies of the government and their implementation. He retired in March 2001, at which time he was made Chairman of the Employees Provident Fund, a position he currently holds. He is also a Director of Cycle & Carriage Bintang Berhad, Malaysia Building Society Berhad, Malakoff Berhad and LCL Corporation Berhad and the Chairman of Multimedia Development Corporation.
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Y. Bhg. Dato' Zainal Abidin PutihIndependent Non-Executive Director and Chairman of the Board Audit CommitteeD.S.N.S., FCA (ICAEW), CA (M), CPA (M)
Y. Bhg. Dato' Zainal Abidin Putih, aged 59, a Malaysian, was appointed Director of the Company on March 6, 2003. Upon qualifying from the Institute of Chartered Accountants in England and Wales, he joined the firm of Hanafiah Raslan & Mohamad, which merged with Ernst & Young in July 2002. He has extensive experience in audit having worked as a practicing accountant throughout his career covering many principal industries including banks, insurance, energy, transport, manufacturing, government agencies, plantations, properties, hotels, investment companies and unit trusts. He also has a good working knowledge of taxation matters and management consultancy, especially in the areas of acquisitions, takeovers, amalgamations, restructuring and public listing of companies. He plays an active role in the community and the corporate world being the Past President of the Malaysian Institute of Certified Public Accountants. He had served two terms as a member of the Malaysian Communication & Multimedia Commission, a body set up by the Malaysian government to oversee the orderly development of the Multimedia and Telecommunication industry in Malaysia. He is currently a Trustee of the National Heart Institute Foundation and a Director of Tenaga Nasional Berhad, CIMB Berhad and Chairman of Pengurusan Danaharta Nasional Berhad. He is also the Chairman of the Malaysian Accounting Standards Board (MASB) and a member of the Investment Panel of the Employees Provident Fund .
Zain C. WilloughbyExecutive Financial Director and Member of the Board Audit CommitteeB.Sc. (Hons.) Physics, King's College, University of London
Encik Zain C. Willoughby, aged 45, a Malaysian, was appointed Director of the Company on August 10, 2004. He started his career in ExxonMobil when he joined Esso Malaysia Berhad as a Systems Analyst in 1985. During his career, he has held a number of staff and managerial positions within ExxonMobil’s Information Services, Exploration, Controller’s, Audit, Treasurer's and Tax organizations. In 1996, he was assigned to Exxon Mobil Corporation's headquarters in Irving, Texas, as Senior Financial Analyst. His last assignment in the U.S.A. prior to returning to Malaysia as Treasurer, was as Financial Advisor to ExxonMobil affiliates in several countries in the Asia-Pacific. He is also presently the Treasurer and Tax Manager of the ExxonMobil Subsidiaries in Malaysia.
Abu Hassan Seeni AbdulExecutive Retail Business Director and Alternate Member to Encik Zain C. Willoughby on the Board Audit CommitteeB.A., Mathematics, Southern Illinois University, U.S.A.M.Sc. Mathematics, Southern Illinois University, U.S.A.
Encik Abu Hassan Seeni Abdul, aged 47, a Malaysian, was appointed Retail Business Director of the Company on February 24, 2001. He started his career with Esso Malaysia Berhad in 1981 in the Marketing Department as an Operations Analyst. After holding various professional and supervisory positions in the department, he accepted a 3-year foreign assignment with Exxon Company U.S.A. in Houston. He was attached to the Marketing Department and held various positions including a stint as a District Manager for South Texas CORS. He returned to Malaysia in 1995 to take on the position of Retail Development Manager and in 1997, was promoted to the position of Retail Trade Manager. From 1998 to 2000, he accepted another overseas assignment as the Country Manager in Esso Standard Oil SA Limited, Jamaica. In February 2000, he returned to Malaysia to assume the position of Retail Sales Director, which was renamed Retail Business Director in August 2002.
Abu Bakar Siddik Che EmbiExecutive Refinery DirectorB.Sc. (Hons.) Chemical Engineering, Leeds University, United Kingdom
Encik Abu Bakar Siddik Che Embi, aged 52, a Malaysian, was appointed Director of the Company on September 1, 2003. He started his career with Port Dickson Refinery in 1976 and held various technical, operational and supervisory positions in the Refinery until 1990, when he was assigned to the Baytown Refinery, Exxon U.S.A., for about three years. In this assignment, he held the position of Technical Advisor and a number of leadership roles in the Process Department. Following that he spent six months with the Exxon Company International Refinery Dept., Florham Park, New Jersey as Refinery Advisor. In 1994, he returned to Malaysia and assumed the position of Deputy Manufacturing Manager of the Port Dickson Refinery. In 1995, he was promoted to Manufacturing Manager and held this position until 2003, when he was appointed Refinery Director.
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Directors
Mr. Robert Fisher(Chairman)
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim(Independent Non-Executive Director)
Y. Bhg. Tan Sri Abdul Halim Ali(Independent Non-Executive Director)
Y. Bhg. Dato' Zainal Abidin Putih(Independent Non-Executive Director)
Encik Zain C. Willoughby(Executive Financial Director)
Encik Abu Hassan Seeni Abdul(Executive Retail Business Director)
Encik Abu Bakar Siddik Che Embi (Executive Refinery Director)
SecretaryCik Rajabee Mohd Yusoff(MAICSA Reg. No. 0743587)
Share RegistrarTenaga Koperat Sdn. Bhd. (Company No. 118401-V)20th Floor, Plaza Permata Jalan Kampar, Off Jalan Tun Razak50400 Kuala LumpurTel: 03-40416522 Fax: 03-40426352
AuditorsPricewaterhouseCoopersChartered AccountantsKuala Lumpur
Stock Exchange ListingMain Board of Bursa Malaysia Securities Berhad
SolicitorsMessrs. Raja, Darryl & Loh, Kuala LumpurMessrs. Azman, Davidson & Co., Kuala LumpurMessrs. Ng Yook Woon, Andrew T.C.Saw & Co.,Kuala LumpurMessrs. Skrine, Kuala LumpurMessrs. Lee Hishammuddin Allen & Gledhill, Kuala LumpurMessrs. Shearn Delamore & Co., Kuala Lumpur
Registered OfficeEMB Company Secretary’s OfficeLevel 29, Menara ExxonMobilKuala Lumpur City Centre50088 Kuala LumpurTel: 03-20533000 Fax: 03-23803473
Corporate Information Corporate Information
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The Board of Directors of Esso Malaysia Berhad is committed to ensuring that the highest standards of corporate governance are practised throughout the Company. The Board views this as a fundamental part of its responsibilities to protect and enhance shareholder value. Accordingly, the Board fully supports the principles laid out in the Malaysian Code on Corporate Governance.
Exxon Mobil Corporation, as the Company's ultimate holding company, has developed a series of policies and management systems that are designed to create and support a strong system of corporate governance. The policies and management systems have been adopted by the Board and are communicated to the Company's employees, contractors and vendors, so that each has a clear understanding of the Company's expectations.
The policies, which are set out in a Standards of Business Conduct booklet, and the management systems are strictly enforced. The core policies include Business Ethics, Conflicts of Interest, Antitrust, Alcohol and Drug Use, Gifts and Entertainment, Harassment in the Workplace and Outside Directorships. The management systems are designed to achieve high standards of performance in the areas of safety, operations integrity, internal control and legal and environmental compliance.
The Board and the Board Audit Committee ensure that the policies and the management systems are fully implemented and consistently enforced. They are supported in these regards by an internal Management Committee, and an Audit and Controls Committee, both led by the Chairman.
The Board
The Board leads and controls the Company. The Board meets at least four times a year, with additional matters resolved by way of Circular Resolutions as and when necessary. Each Non-Executive Director is independent and brings invaluable judgement to bear on issues of strategy, performance, resource allocation, risk management and standards of conduct.
For the year ended December 31, 2004, four Board and four Board Audit Committee meetings were held. Details of the Directors' attendance at these meetings are summarised below:
Directors Number of Board Number of Board AuditMeetings Committee Meetings
Held Attended Held Attended Mr. Robert Fisher 4 4 Non- Non-
member member
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim 4 4 - -(Alternate member to Y. Bhg. Tan Sri Abdul Halim Ali and Y. Bhg. Dato' Zainal Abidin Putih on the Board Audit Committee)
Y. Bhg. Tan Sri Abdul Halim Ali 4 4 4 4
Y. Bhg. Dato' Zainal Abidin Putih 4 4 4 4
Encik Zain C. Willoughby 2* 2* 2* 2*(Appointed on August 10, 2004)
Encik Abu Hassan Seeni Abdul 4 3 - -(Alternate member to Encik Zain C. Willoughby on the Board Audit Committee)
Encik Abu Bakar Siddik Che Embi 4 3 Non- Non-member member
* Reflects the number of meetings held during the time the Director held office.
Corporate GovernanceCorporate Governance
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Board Membership
The Board had 7 members in 2004, with 3 Independent Non-Executive Directors and 4 Executive Directors (including the Chairman). Mr. James A. Hall, Executive Financial Director, accepted an assignment with Exxon Mobil Corporation, Irving, Texas, U.S.A. and resigned from the Board on August 10, 2004. The Board appointed Encik Zain C. Willoughby as Executive Financial Director to succeed Mr. James A. Hall effective the same date.
Together, the Directors form the mind and management of the Company.
The functional organisation of the Company provides a system and structure of checks and balances in the
decision making process. There is a clear division of responsibilities between the Chairman and the other
Executive Directors namely the Financial Director, the Retail Business Director, and the Refinery Director.
Balance in the Board is achieved and maintained with the composition of both Executive and Independent
Non-Executive Directors. In recognition that the Independent Non-Executive Directors have a primary role in
providing unbiased and independent views, the Company has selectively appointed highly qualified
individuals of integrity and character, with broad experience and proven business and management expertise.
Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim is the longest serving Independent Non-Executive Director
of the Company. Shareholders are at liberty to approach Y.Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim, or
any of the other Independent Non-Executive Directors, should there be any concerns relating to the Company
and its Management.
Supply of Information
Information regarding the Company’s business and affairs is normally provided to the Board by the Company’s management and staff and by the Company’s independent auditors. Towards meeting this objective, Board meetings are structured with a pre-determined agenda. Board papers covering the Company's operational and financial performance, strategic plans on any significant matters and developments, together with the minutes of the previous Board and Board Audit Committee meetings, are circulated to the Directors in advance of each meeting. This allows the Directors time to deliberate on the issues to be raised and discussed at each meeting. The Board, in addition to having full access to the advice and services of the Company Secretary, has the authority to retain such outside advisors, including accountants, legal counsel, and other experts, as it deems appropriate. The fees and expenses of any such advisors will be paid by the Company.
Appointment and Re-election of Directors
In accordance with the Company's Articles of Association, the Board can appoint any person to be a Director as and when it is deemed necessary. Any person so appointed shall hold office until the next Annual General Meeting at which time he will be subject to election by the shareholders. An election of Directors takes place every year, with each Director retiring from office at least once every three years. Directors retiring by rotation are eligible for re-election by the shareholders at the Annual General Meeting.
Remuneration Committee
The Board appointed a committee of directors known as the Remuneration Committee on August 27, 2003. The current members of the Committee are as follows:
Mr. Robert Fisher (Executive Director) - Chairman
Encik Zain C. Willoughby (Executive Director) - Alternate Chairman
Y.Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim - (Independent Non-Executive Director)
Y. Bhg. Dato' Zainal Abidin Putih - (Independent Non-Executive Director)
The Remuneration Committee is responsible for the recommendation of the remuneration of the Executive and
the Non-Executive Directors, for the Board's consideration and decision.
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Directors' Remuneration
With the recommendation of the Remuneration Committee, the Board has adopted Exxon Mobil Corporation's compensation system to set the remuneration of Executive Directors. The compensation system took into account the performance of each director and the competitive environment in which the Company operates. The Executive Directors took no part in deciding their own remuneration.
The remuneration received by the Independent Non-Executive Directors in 2004 was recommended by the
Board as a whole and was benchmarked against the competitive environment. The Independent Non-Executive
Directors took no part in deciding their own remuneration.
An analysis of the aggregate Directors' remuneration incurred by the Company for the year ended December 31,
2004 as prescribed under Appendix 9C Part A Item 10(a) of the Listing Requirements of the Bursa Malaysia
Securities Berhad (BMSB) is set out below:
FEES VALUE OF REMUNERATION TOTAL(RM) AND OTHERS (RM) (RM)
EXECUTIVE DIRECTORS - 1,461,059 1,461,059NON-EXECUTIVE DIRECTORS 90,000 12,000 102,000
An analysis of the number of Directors whose remuneration, incurred by the Company, falls in successive bands of RM50,000 as prescribed under Appendix 9C Part A Item 10(b) of the Listing Requirements of the BMSB is set out below.
REMUNERATION (RM) NUMBER OF EXECUTIVE NUMBER OF NON-DIRECTORS EXECUTIVE DIRECTORS
Less than 50,000 350,001 - 100,000 1100,001- 150,000150,001- 200,000200,001- 250,000 2250,001- 300,000300,001- 350,000350,001- 400,000 1400,001 - 450,000450,001 - 500,000500,001 - 550,000550,001 - 600,000 1
The Company has opted not to disclose each Director's remuneration as the Board considers the information to be sensitive and proprietary.
Nominating Committee
The Board appointed a committee of directors known as the Nominating Committee on August 27, 2003. The current members of the Committee are as follows:
Mr. Robert Fisher (Executive Director) - Chairman Encik Zain C. Willoughby (Executive Director) - Alternate Chairman Y. Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim - (Independent Non-Executive Director) Y. Bhg. Tan Sri Abdul Halim Ali - (Independent Non-Executive Director)
The Nominating Committee is responsible for the recommendation of candidates for appointment as Non-Executive Director and Executive Director and the recommendation of Directors for committees, for the Board's consideration and decision. The Committee is also responsible for the assessment of the effectiveness of individual Directors and the overall Board on an ongoing basis.
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Nominating Committee (Continued)
The Nominating Committee recommended the appointments of Encik Abu Bakar Siddik as the Executive Refinery Director and Encik Zain C. Willoughby as the Executive Financial Director in 2003 and 2004 respectively. In 2004, the Committee was briefed on the management development process for senior management including the systems and processes on performance assessment, training and career development, staffing and position planning as well as compensation and benefits.
Directors' Training
As required under the Listing Requirements of the BMSB, the Directors have attended the Mandatory Accreditation Programme and participated in the Continuous Education Programme (CEP) organised by the Research Institute of Investment Analysts Malaysia and other relevant regulatory authorities and professional bodies. The Company reimburses the Directors for the cost of attending the CEP training. The status of each Director's compliance with the CEP requirements is monitored and reviewed at each quarterly Board meeting.
Dialogue between the Company and Investors
The Board values and encourages dialogue with the shareholders to establish better understanding of the Company's objectives and performance. The Annual General Meeting provides an appropriate forum for the shareholders to dialogue with the Board. Additionally, the Company has a Public Affairs Department, which deals with queries from investors and potential investors. The Company also holds open discussions with investors and analysts upon request. In this regard, the Company disseminates information in strict adherence to the disclosure requirements of the Listing Requirements of the BMSB. Material information relating to the Company is disclosed to the public by way of announcements to the BMSB, as required by the Listing Requirements of the BMSB.
Annual General Meeting
At the Annual General Meeting, the Chairman of the Board reviews the progress and performance of the Company with the shareholders. A question and answer session is also conducted to allow shareholders the opportunity to question Management on the Company's business and the proposed resolutions. The Chairman, the Board members and the external auditors are available at the Annual General Meeting to respond to the questions.
Accountability and Audit
In announcing the quarterly, semi-annual and annual financial statements to the shareholders and the public, the Board endeavours to present a balanced and understandable assessment of the Company's financial position and prospects. The Board Audit Committee assists the Board by ensuring the accuracy and adequacy of the information announced.
Internal Control
The Directors are responsible for the Company's system of internal controls. The system applies to all financial and operating activities with the objective of safeguarding the shareholders' investment and the Company's assets. The internal control system has clear management support, including the involvement of the Board, and is designed to meet the risks to which the Company is exposed. The Board is satisfied with the design of the control system and believes that there is compliance with all of the requirements.
Key elements of the Company's internal control system include:
1. a comprehensive and clearly documented System of Management Control Standards Manual that establishes the core requirements for good controls within the Company. The Manual not only identifies the principal risks faced by the Company, but also prescribes the appropriate systems to manage these risks. The Manual also specifies the overall control framework, the required control checks and the required checks on the system's effectiveness,
In addition to the CEP training, the Directors are also briefed at quarterly board meetings by Company staff on
any changes in laws and regulations that are relevant to the Company's operations.
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Internal Control (Continued)
2. a clearly defined organisational structure with clear lines of accountability and delegation of authority for each level,
3. annual reviews of the control system, including internal and external audits. The results are reviewed with various levels of management and any major concerns are raised to Senior Management and the Board
Audit Committee,
4. key policies covering Business Ethics, Conflict of Interest, Antitrust, Alcohol and Drug Use, Gift and Business Entertainment, Harassment in the Workplace and Outside Directorships. They include
requirements to comply with all applicable laws and regulations. These policies are communicated to andacknowledged by employees on an annual basis,
5. a Controls Integrity Management System to assess and sustain the effectiveness of the organisation's system of controls,
6. a yearly representation of compliance to the internal control system and key policies by the managers of each business unit in the Company. Managers are required to document any outstanding control concerns and the planned corrective action steps.
It should be noted that systems of internal control and risk management are designed to manage rather than eliminate the risk of failure to achieve business objectives, and any system can only provide reasonable and not absolute assurance against material misstatement or loss.
Statement of Directors’s Responsibility for Preparing the Financial Statements
The Directors are required by the Companies Act, 1965 and the Listing Requirements of the BMSB to confirm that the financial statements for each financial year have been made out in accordance with the applicable approved accounting standards and that they give a true and fair view of the results of the business and state of affairs of the Company for the financial year.
The Directors have carried out their responsibilities by:! selecting suitable accounting policies and applying them consistently;! making judgement and estimates that are reasonable and prudent;! ensuring that all applicable accounting standards have been adhered to; and! basing the financial statements on a going-concern basis, as the Directors have a reasonable expectation,
after having made due enquiries, that the Company has adequate resources to continue in operational existence for the foreseeable future.
The Directors are responsible for ensuring that the Company keeps accounting records which disclose with reasonable accuracy, the financial position of the Company, enabling the Directors to ensure that the financial statements comply with the Companies Act, 1965 and to safeguard the assets of the Company.
Relationship with Auditors
The Board has established a formal and transparent relationship with the auditors of the Company. The role ofthe Board Audit Committee in relation to the internal and external auditors is described on page 21 of this Annual Report.
Material Contracts
The Company is not and was not a party to any material contracts involving the Directors' or its major shareholder's interests during the year.
Non-Audit Fees
The amount of non-audit fees paid or payable to the external auditors, PricewaterhouseCoopers, by the Company for the financial year ended December 31, 2004 is RM 5,486.
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Other Information
i) Family Relationship
None of the Directors have any family relationship with any other Director and / or major shareholder of the Company.
ii) Conflict of Interest
None of the Directors have any conflicts of interest with the Company.
iii) Conviction for offences (excluding traffic offences)
None of the Directors have been convicted for any offences within the past 10 years.
iv) Sanctions and / or penalties
No sanction or penalty has been imposed on the Company, or the Directors or the Management, by the relevant regulatory bodies.
This Statement is made in accordance with the Board of Directors' resolution dated February 24, 2005.
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MEMBERSHIP AND MEETINGS
The Committee comprises two Independent Non-Executive Directors, and one Executive Director. The following are the Committee members:
1. Y. Bhg. Dato’ Zainal Abidin Putih, an Independent Non-Executive Director, who has been elected as the Chairman of the Committee. His alternate is Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim, an Independent Non-Executive Director.
2. Y. Bhg. Tan Sri Abdul Halim Ali, an Independent Non-Executive Director, whose alternate is Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim, an Independent Non-Executive Director.
3. Encik Zain C. Willoughby, an Executive Director, appointed to the Committee on August 10, 2004 to succeed Mr. James A. Hall, who ceased to be a member on the same date. His alternate is Encik Abu Hassan Seeni Abdul, who is also an Executive Director.
A detailed profile of the Committee members can be found on pages 12 and 13.
The Secretary to the Committee is the Controller of the Company.
The Committee had 4 meetings during the last financial year. The details of attendance of each Committee member has been tabulated under the Corporate Governance Statements section, which can be found on page 15. Other Directors of the Company and relevant personnel attended some of the Committee meetings by invitation.
SUMMARY OF ACTIVITIES
During the last financial year, the Committee discharged its functions and carried out its duties as set out in the Terms of Reference below.
INTERNAL AUDIT
The Company is subject to independent regular and systematic audit reviews of its system of internal controls. This is to provide reasonable assurance that such systems are operating effectively. The basic framework of the Company’s system of internal controls is described under the Corporate Governance Statements section, which can be found on page 15. The internal audit process covers the audit of all the Company’s units and operations and the annual review with the Committee of audit results and audit plans for the subsequent year.
The internal audit function is undertaken by a regional internal audit group, ultimately taking functional guidance from Exxon Mobil Corporation. This structure allows the Company to benefit from the application of global audit best practices and assures the Company of internal audit independence.
TERMS OF REFERENCE OF THE BOARD AUDIT COMMITTEE
Membership
The Committee members shall:
! be appointed from members of the Board of Directors (the Board);! consist of not less than three in number;! comprise, in the majority, independent Directors;! elect a Chairman from among their number, who is an independent Director; and! not be an alternate Director.
Meetings and Minutes
Meetings of the Committee shall be held regularly, and as often as necessary. Other Directors of the Company and relevant personnel may only attend the meetings at the invitation of the Committee. If required, the presence of the external auditors at the meetings of the Committee may be requested. The auditors, both internal and external, may request the Committee to convene a meeting if one is necessary, to consider any matter which any of the auditors believe should be brought to the attention of the Directors and/or shareholders of the Company.
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Board Audit Committee ReportBoard Audit Committee Report
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Meetings and Minutes (Continued)
The Secretary to the Committee shall be appointed by the Committee. The Secretary shall be responsible for the timely issuance of meeting notices together with meeting agenda and any supporting documents in advance of such meeting, for recording, keeping and distributing the minutes of meetings and any other duties ordinarily discharged by a Secretary of such Committee.
Authority
The Committee is authorised by the Board:
! to investigate any matter within its terms of reference;! to have the resources which are required to perform its duties;! to have full and unrestricted access to any information pertaining to the Company;! to have unrestricted access to and communication with the external auditors of the Company and internal
auditors;! to obtain external legal or other independent professional advice as necessary; and! to convene meetings with the external auditors of the Company, without the attendance of the executive
members of the Committee, whenever deemed necessary.
Duties
The Committee is charged with the following duties:
! to review with the external auditors of the Company and internal auditors, the audit plan of the Company, the respective auditors’ evaluation of the Company’s system of internal accounting controls and the audit report, the external auditors’ management letter and management’s response to such letter, and report the same to the Board;
! to review and report to the Board the assistance given by the Company’s employees to the external auditors of the Company and internal auditors;
! to review and report to the Board the adequacy of the scope, functions and resources of the internal audit function and that it has the necessary authority to carry out its work;
! to review and report to the Board the internal audit programme, processes, the results of the internal audit programme, processes, or investigation undertaken, and whether or not appropriate action has been taken on the recommendations of the internal audit ;
! to review and report to the Board the quarterly results and year end financial statements, including the balance sheet and profit and loss statement, prior to submission of the statements to the Board for approval, focusing particularly on:
- changes in existing accounting policies or implementation of new accounting policies; - significant and unusual events;
- compliance with accounting standards and other legal requirements; and- the going concern assumption;
! to review and report to the Board any related party transaction and conflict of interest situation that may arise within the Company;
! to review and report to the Board any removal, resignation, appointment and audit fee of the Company’s external auditors;
! to review and report to the Board whether there is reason (supported by grounds) to believe that the Company’s external auditors are not suitable for reappointment;
! to recommend the nomination of a person or persons as external auditors of the Company;
! to report promptly to Bursa Malaysia Securities Berhad (BMSB) matters reported by the Committee to the Board which have not been satisfactorily resolved resulting in a breach of the Listing Requirements of BMSB ; and,
! to perform such other functions as may be agreed to by the Committee and the Board.
This Statement is made in accordance with the Board of Directors’ resolution dated February 24, 2005.
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The Directors are pleased to submit the annual report together with the audited financial statements of the Company for the year ended December 31, 2004.
PRINCIPAL ACTIVITIES
The Company is a public company incorporated in Malaysia under the Companies Act, 1965 and is listed on the Bursa Malaysia Securities Berhad. The Company's principal activities are the manufacturing and marketing of petroleum products in Peninsular Malaysia. There has been no significant change in the nature of the Company's activities during the year.
FINANCIAL RESULTS
RM'000
Net loss attributable to shareholders (24,175)Retained profits brought forward 424,560Profits available for appropriation 400,385Dividend paid less income tax at 28% (23,328)Retained profits carried forward 377,057
DIVIDENDS
The amount of dividends paid since December 31, 2003 are as follows: RM'000
In respect of the year ended December 31, 2003: Final dividend per stock unit, paid on June 21, 2004:Ordinary - 12 sen gross less income tax at 28% 23,328
The Directors propose that a final dividend of 12 sen less income tax at 28% per ordinary stock unit, amounting to RM23,328,000 be paid for the year ended December 31, 2004.
RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the year are shown in the financial statements.
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS
Before the income statement and balance sheet were completed, the Directors took reasonable steps:
1. to satisfy themselves that all receivables had been properly analysed, that bad debts had been written off where appropriate and that adequate allowances had been established for doubtful debts; and
2. to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, were written down to the expected realisable amount.
At the date of this report, the Directors are not aware of any circumstances:
1. which would make the amounts written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Company inadequate to any substantial extent; or
2. which would make the values attributed to current assets in the financial statements of the Company misleading; or
3. which would make adherence to the existing method of valuation of assets or liabilities of the Company misleading or inappropriate.
Report of the DirectorsReport of the Directors
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No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the year which, in the opinion of the Directors, will or may affect the ability of the Company to meet its obligations when they fall due.
At the date of this report, there does not exist:
1. any charge on the assets of the Company which has arisen since the end of the year which secures the liability of any other person; or
2. any contingent liability of the Company which has arisen since the end of the year.
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would make any amount stated in the financial statements misleading.
In their opinion:
1. the results of the Company's operations during the year were not substantially affected by any item, transaction or event of a material and unusual nature; and
2. there has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the
operations of the Company for the year in which this report is made.
DIRECTORS
The Directors who have held office during the period since the date of the last report are as follows:
Mr. Robert FisherY.Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed SalimY.Bhg. Tan Sri Abdul Halim AliY.Bhg. Dato' Zainal Abidin PutihEncik Abu Hassan Seeni AbdulEncik Abu Bakar Siddik Che EmbiEncik Zain C. Willoughby (appointed w.e.f. August 10, 2004)Mr. James A. Hall (resigned w.e.f. August 10, 2004)
DIRECTORS' BENEFITS
Since the end of the previous year, no Director has entered into or received or become entitled to receive a benefit (other than benefits disclosed in notes 6 and 7 to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest. All transactions between the Company or a related corporation and companies in which Directors have interests are conducted on an arms-length, commercial basis in the ordinary course of business.
The Company was not a party to any contract or arrangement during the year and at the end of the year, as envisaged by section 169(6)(f) of the Companies Act, 1965, which would have enabled any of the Directors to acquire benefits through the acquisition of shares in or debentures of the Company or any other body corporate.
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DIRECTORS' INTERESTS IN SHARES
According to the register of Directors' shareholdings, the interests of Directors who held office at the end of the year in the share capital of the Company and its related corporations are as follows:
As at 01.01.04
or date of As atappointment Bought Sold 31.12.04
Exxon Mobil Corporation (Ultimate holding company) - Number of common stock without par value held by the following Directors:
Mr. Robert Fisher 54,142 61,438 (36,000) 79,580 Encik Zain C. Willoughby 200 - - 200
Encik Abu Bakar Siddik Che Embi - 6,800 (6,800) -
No other Director in office at the end of the year held any interest in the share capital of the Company or its related corporations during the year.
DIRECTORATE
In accordance with Article 104 and Article 105 of the Company's Articles of Association, Y.Bhg. Tan Sri Dato' Dr. Syed Jalaludin Syed Salim and Y.Bhg. Tan Sri Abdul Halim Ali retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.
In accordance with Article 109 of the Company's Articles of Association, Encik Zain C. Willoughby retires at the forthcoming Annual General Meeting and, being eligible, offers himself for re-election.
ULTIMATE HOLDING COMPANY
The Directors regard Exxon Mobil Corporation, a corporation incorporated in the state of New Jersey, United States of America, as the ultimate holding company of the Company.
AUDITORS
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.
In accordance with a resolution of the Board of Directors dated February 24, 2005.
.............................Robert FisherChairman
............................Zain C. Willoughby
Financial Director
Kuala Lumpur,
February 24, 2005
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TO THE MEMBERS OF ESSO MALAYSIA BERHAD (Company Number 3927V)
We have audited the financial statements set out on pages 27 to 44. These financial statements are the responsibility of the Company's Directors. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with approved Auditing Standards in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Directors, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been prepared in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards in Malaysia so as to give a true and fair view of:
(i) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and
(ii) the state of affairs of the Company as at December 31, 2004 and of the results and cash flows of the Company for the year ended on that date;
and
(b) the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.
PRICEWATERHOUSECOOPERS(No. AF-1146)Chartered Accountants
DATO' AHMAD JOHAN BIN MOHAMMAD RASLANNo.1867/09/06(J)
Partner of the firm
Kuala LumpurFebruary 24, 2005
Report of the AuditorsReport of the Auditors
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FOR THE YEAR ENDED DECEMBER 31, 2004
Note 2004 2003
RM'000 RM'000
REVENUES 4 6,198,140 4,774,443
COST OF SALES (5,867,106) (4,349,990)
GROSS PROFIT 331,034 424,453
OTHER OPERATING INCOME 26,844 23,712
OPERATING EXPENSES (305,650) (293,507)
ADMINISTRATIVE AND OTHER EXPENSES (62,429) (48,820)
(LOSS) / PROFIT FROM OPERATIONS (10,201) 105,838
FINANCE COST 5 (19,200) (18,653)
(LOSS) / PROFIT FROM ORDINARY ACTIVITIES
BEFORE TAX 6 (29,401) 87,185
TAXATION 8 5,226 (30,170)
NET (LOSS) / PROFIT ATTRIBUTABLE TO
SHAREHOLDERS (24,175) 57,015
(Loss) / earnings per ordinary stock unit (sen) 9 (9.0) 21.1
Proposed final dividend less income tax
at 28% per ordinary stock unit (sen) 12.0 12.0
Income StatementIncome Statement
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AS AT DECEMBER 31, 2004
Note 2004 2003
RM'000 RM'000
NON CURRENT ASSETS
Property, plant and equipment 10 1,090,092 1,127,447
Long term assets and receivables 11 207,596 187,738
Intangible assets - software 12 5,428 18,132
TOTAL NON CURRENT ASSETS 1,303,116 1,333,317
CURRENT ASSETS
Inventories 13 123,586 92,097
Receivables 14 279,868 201,103
Amounts due from related corporations 18 218,395 204,976
Deposit, cash and bank balances 43,884 7,074
Taxation 5,484 -
TOTAL CURRENT ASSETS 671,217 505,250
CURRENT LIABILITIES
Payables 15 247,998 241,343
Provision for customer loyalty programme 16 3,012 2,723
Provision for retirement benefits 17 2,238 2,141
Amounts due to related corporations 18 322,081 306,101
Borrowings (unsecured) 19 766,000 572,900
Taxation - 6,189
TOTAL CURRENT LIABILITIES 1,341,329 1,131,397
NET CURRENT LIABILITIES (670,112) (626,147)
LESS: NON CURRENT LIABILITIES
Provision for retirement benefits 17 53,270 60,997
Deferred taxation 20 59,677 78,613
112,947 139,610
TOTAL NET ASSETS EMPLOYED 520,057 567,560
FINANCED BY:
SHARE CAPITAL 21 135,000 135,000
RESERVES 22 8,000 8,000
RETAINED PROFITS 22 377,057 424,560
SHAREHOLDERS' EQUITY 520,057 567,560
Balance SheetBalance Sheet
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FOR THE YEAR ENDED DECEMBER 31, 2004
Issued and fully paid
ordinary stock of
RM0.50 each Non-distributable
Number of capital Distributable
ordinary Nominal redemption retained
stock unit value reserves profits Total
'000 RM'000 RM'000 RM'000 RM'000
At January 1, 2004 270,000 135,000 8,000 424,560 567,560
Net loss - - - (24,175) (24,175)
Dividends for the year ended
December 31, 2003 (final) - - - (23,328) (23,328)
At December 31, 2004 270,000 135,000 8,000 377,057 520,057
At January 1, 2003 270,000 135,000 8,000 386,985 529,985
Net profit - - - 57,015 57,015
Dividends for the year ended
December 31, 2002 (final) - - - (19,440) (19,440)
At December 31, 2003 270,000 135,000 8,000 424,560 567,560
Statement of Changes in EquityStatement of Changes in Equity
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FOR THE YEAR ENDED DECEMBER 31, 2004
Note 2004 2003
RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) / profit attributable to shareholders (24,175) 57,015
Adjustments for:
Depreciation on property, plant and equipment 70,180 70,135
Amortisation of intangible assets 2,147 1,678
Taxation (5,226) 30,170
Interest income (303) (87)
Interest expense / commercial papers profit elements incurred 19,200 18,653
Provision for retirement /separation benefits 11,761 11,228
Provision for customer loyalty programme 289 (1,365)
Loss / (gain) on disposal of property, plant and equipment 4,205 (63)
Write-off of property, plant and equipment, and intangible assets 4,705 184
Unrealised foreign exchange loss / (gain) 77 (48)
Changes in:
(Increase) / decrease in inventories (31,489) 21,879
Increase in receivables (78,578) (71,088)
Increase in amounts due from related corporations (13,419) (6,324)
Increase / (decrease) in amounts due to related corporations 11,755 (61,364)
Increase in payables and provisions 6,291 26,739
Cash (used in) / generated from operations (22,580) 97,342
Interest / commercial papers profit elements paid (19,348) (18,653)
Interest received 303 87
Income taxes paid (29,953) (33,930)
Income taxes refund 4,570 -
Retirement / separation benefits paid (15,084) (5,880)
Net cash (used in) / from operating activities (82,092) 38,966
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (53,950) (60,504)
Purchase of intangible assets (620) (1,108)
Increase in long term assets and receivables (19,858) (9,681)
Proceeds from disposal of property, plant and equipment 12,215 11,449
Proceeds from disposal of intangible assets 11,177 -
Net cash used in investing activities (51,036) (59,844)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings - net 194,000 37,000
Dividends paid to shareholders (23,328) (19,440)
Net cash from financing activities 170,672 17,560
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 37,544 (3,318)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (300) 3,018
CASH AND CASH EQUIVALENTS AT END OF YEAR 23 37,244 (300)
Statement of Cash FlowsStatement of Cash Flows
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1. BASIS OF PREPARATION
The financial statements of the Company are prepared under the historical cost convention except as disclosed in the summary of significant accounting policies in Note 2. The financial statements comply
with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.
The preparation of financial statements in conformity with the applicable approved accounting standards
in Malaysia and the provisions of the Companies Act, 1965 requires the Directors to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unless otherwise stated, the following accounting policies adopted by the Company are consistent with those adopted in previous years:
(a) Property, plant and equipment
Property, plant and equipment are stated at cost or valuation less accumulated depreciation.
The Directors have applied the transitional provisions of Financial Reporting Standards (FRS)116 on Property, Plant and Equipment which allows freehold and leasehold land and buildings to be stated at their prevailing valuations less depreciation. Such assets acquired in 1982 or earlier are stated at valuations determined by independent professional valuers in 1982 on the following bases:
Land - Open market value based on existing useBuildings - Depreciated replacement cost
These valuations have not been updated since 1982. Freehold and leasehold land and buildings acquired after 1982 are stated at cost less accumulated depreciation.
No depreciation is provided on freehold land and capital projects that are in progress. Leasehold land is amortised in equal instalments over the period of the respective leases that range from 30 to 99 years.
Buildings and improvements and plant and equipment are depreciated on a straight-line basis to write-off the cost or valuation of the assets over the term of their estimated service lives. The principal annual rates of depreciation used are as follows:
Buildings and improvements 3% - 5%Plant and equipment 4% - 10%
Maintenance and repairs are charged to the income statement as incurred. Major renewals and improvements are capitalised.
The carrying amounts of property, plant and equipment are reviewed to determine whether there is any indication of impairment. If such an indication exists, the carrying amount of the asset is assessed
and written down immediately to its recoverable amount.
Included in the respective property, plant and equipment classifications, is the Company's share of its interest in the Multi Product Pipeline System and related distribution terminal facilities. The accounting policy adopted for these jointly controlled assets is consistent with those adopted for the
Company's 100% owned property, plant and equipment.
(b) Intangible assets - software
Intangible assets are stated at cost less accumulated amortisation. Computer software and development costs with economic benefit exceeding five years are capitalised where material. Computer software costs are amortised on a straight-line basis over the estimated useful life of the software, which normally falls within a range of 10 to 15 years.
Notes to the Financial StatementsNotes to the Financial Statements
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Operating leases
Leases of assets under which a significant portion of risks and benefits of ownership is effectively retained by the lessor are classified as operating leases. Prepaid lease rentals on service station sites made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Payments for all other operating leases are charged to the income statement in the year to which they relate.
(d) Inventories
Crude oil and petroleum product inventories are valued at the lower of cost and net realisable value. Cost includes all applicable purchase costs and production overheads and is determined on the last-in first-out basis. Materials and supplies are valued at cost, determined on a weighted average basis, and
a deduction is made for obsolete and slow moving stocks.
(e) Trade receivables
Trade receivables are carried at anticipated realisable value. Bad debts are written off in the year in which they are identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end.
(f) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents include bank balances, deposits held at call with banks and cash in hand less bank overdrafts. To be included, these items must be readily convertible to cash and must not be subject to a significant risk of a change in value.
(g) Provisions
Provisions are recognised when it is probable that an outflow of resources will be required to settle a present obligation, and when a reliable estimate of the amount can be made. The provisions are reviewed at year end and adjusted to reflect the current best estimate.
(h) Employee benefits
(i) Short term employee benefitsWages, salaries, bonuses, and non-monetary benefits are accrued in the year in which the
associated services are rendered by employees of the Company.
(ii) Post employment benefits
(a) Defined contribution retirement planThe Company's contribution to the national defined contribution plan, the Employees
Provident Fund, is recognised in the income statement as incurred.
(b) Retirement benefitsThe Company operates an unfunded defined benefit retirement plan for its regular national
employees. The provision for employees' retirement benefits is determined by a periodic independent actuarial valuation that is based on the schedule of benefits stipulated in the Company's retirement benefits plan. The most recent valuation was carried out in
November 2003. The projected unit credit method is used to calculate the actuarial plan benefits based on the estimated years of service and employees' projected compensation during their last year of employment. The amount recognised in the balance sheet represents the present value of the defined benefit obligations adjusted for unrecognised actuarial gains or losses and past service cost. Actuarial gains or losses are amortised on a straight-line basis over the average remaining service life of employees expected to receive
the plan benefits.
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Employee benefits (Continued)
(iii) Separation benefitsSeparation benefits are payments due to employees as a result of the separation of employment before the normal retirement age. The liability for separation benefits is recognised when the Company's commitment is confirmed without any realistic possibility of withdrawal.
(i) Share capital
Ordinary stock units with discretionary dividends are classified as equity.
(j) Dividends
Dividends on ordinary stock units are recognised as liabilities when the dividends are approved for payment.
(k) Borrowings
Borrowings are recognised based on the principal amounts expected to be repaid upon maturity. All interest, profit elements on Islamic Commercial Papers (ICP) Programme and other costs incurred in connection with borrowings are expensed as incurred, except that up-front costs incurred in establishing long term facilities are amortised over the facility period.
(l) Taxation
The taxation charge in the income statement comprises current and deferred taxes. Current taxes are calculated by applying current tax rates to the chargeable income for the year.
Deferred taxes are calculated at the balance sheet date on all material temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available to absorb the deductible temporary differences. Tax rates enacted or substantively enacted by the balance sheet date are used to calculate deferred taxes.
(m) Revenue recognition
Income from the sale of goods is recognised upon delivery of goods and acceptance by customers net of returns, discounts and allowances, in accordance with the terms of sale. Interest and other income on land and buildings are recognised on an accrual basis.
(n) Research and development
Expenditures on research and development are recognised as expense except when there is sufficient certainty that the development efforts will result in future economic benefits for the Company, in which case these costs are capitalised.
(o) Foreign currencies
Transactions arising in foreign currencies are translated into Ringgit Malaysia at the approximate rates of exchange on the transaction dates. Transactions uncompleted at the balance sheet date are
translated at the closing exchange rates. Foreign currency exchange gains and losses resulting from the translation and settlement of foreign currency transactions are included in the income statement.
The closing rate used in translation of foreign currency amounts is RM3.80 : 1 US Dollar for the year ended December 31, 2004 (2003: RM3.80 : 1 US Dollar).
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3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
4. REVENUES
2004 2003RM'000 RM'000
Related corporations sales
RM'000 RM'000
Interest and profit elements on borrowings (Note 19) 13,386 12,298Interest on borrowings from related parties 5,814 6,355
19,200 18,653
The Company's financial results can be significantly affected from time to time by volatility in the market prices for crude oil and petroleum products. Since international crude oil and petroleum product prices are denominated in US Dollars, the Company's results can also be affected by fluctuations in foreign exchange rates. In addition, the Company can be affected by fluctuations in market interest rates as the Company's operations are financed through a mixture of retained profits and external debt. The external debt is generally based on floating interest rates unless opportunities arise for competitive fixed rate financing.
Given its large size and the long term nature of its business, we expect that the Company's exposure tothese risks will be moderated over time. As such, the Company discourages the use of financial derivativeinstruments to manage these risks. The Company believes that the administrative and financial costs to
execute and control the use of derivatives typically outweigh the potential benefits. Any derivative transaction would require Senior Management approval and periodic review. Speculative derivative
activity is strictly prohibited.
As a result of the above policies, the Company's purchase and sales transactions and foreign exchange transactions are generally based on market prices and exchange rates in effect on the day of each transaction. Interest rates on Company borrowings generally move with daily changes in the applicable
market interest rates.
In addition to the above, the Company is also exposed to credit risk from its trade receivables from customers. The Company manages this risk by strict adherence to a set of credit policies and procedures whereby customers are thoroughly assessed and risk rated. Daily credit monitoring is an integral part of the credit management process that is administered within the Company's financial and operating computer system.
The Company is consistently in a net current liability position as retail sales to service stations are on cash terms whilst purchases, which are mostly intercompany in nature, are on credit terms. This improves the Company's return on capital employed by effectively reducing its exposure to uncollected trade
receivables.
In addition, the Company continues to optimise the mix in its borrowing facilities to maximise financing flexibility whilst reducing financing cost. These facilities are short term in nature unless opportunities arise to secure favourable longer term borrowing facilities. A significant component of these short term borrowings are available to the Company on a long term basis as described in Note 19.
3,222,414 2,245,920Third party sales 2,965,666 2,518,918Turnover 6,188,080 4,764,838
Interest income 303 87Licence fees on land and buildings 9,757 9,518
6,198,140 4,774,443
Turnover represents the value of goods sold net of Government duties and taxes of RM32,924,000 (2003:RM232,685,000).
5. FINANCE COST
2004 2003
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6. (LOSS) / PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX
2004 2003RM'000 RM'000
The (loss) /profit from ordinary activities before tax is arrived at after charging / (crediting) the following items:
Depreciation on property, plant and equipment 70,180 70,135Amortisation of intangible assets 2,147 1,678Directors' remuneration:
Fees (Non-Executive Directors) 90 69Auditors' remuneration 117 117Provision / (write-back) for customer loyalty
programmes 289 (1,365)Allowance and write-off for doubtful debts 224 356Bad debts recovered (207) (561)Foreign exchange (other than on borrowings)
Realised foreign exchange (gain) / loss (48) 115Unrealised foreign exchange loss / (gain) 77 (48)
Rental expense for land and buildings 19,269 16,990Hire of plant and machinery 317 470Research and development expense 3,558 3,783Loss / (gain) on disposal of property, plant and
equipment 4,205 (63)
7. STAFF COSTS
2004 2003RM'000 RM'000
Wages, salaries and bonus 42,650 47,028Defined contribution retirement plan -
Employees Provident Fund 5,352 5,233Provision for retirement benefits -
Defined benefit retirement plan (Note 17) 4,828 7,044Separation benefits 6,933 4,184Other employee benefits 3,657 5,035
63,420 68,524
Staff costs include the remuneration of Executive Directors amounting to RM1,291,000 (2003: RM1,060,000). Of this, the amount paid to the Company's ultimate holding company in respect of its executives assigned to the Company as Executive Directors amounted to RM415,000 (2003: RM484,000).
The provision for retirement benefits is made for all regular national employees under the Company's retirement benefits plan. The charge to income includes an amount of RM146,000 (2003: RM99,000) in respect of Directors who are full time employees of the Company.
The estimated monetary value of benefits provided to Directors during the year by way of usage of the Company's assets and the provision of accommodation and other benefits amounted to RM25,000
(2003:RM19,000).
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8. TAXATION
2004 2003RM'000 RM'000
Current taxation 13,472 26,424Under accrual in prior years 238 2,458
Deferred taxation (Note 20)Origination and reversal of temporary differences (18,936) 1,288
(5,226) 30,170
The Company's effective tax rate differs from the statutory tax rate and is reconciled as follows:
2004 2003% %
Statutory tax rate (28) 28Expenses not deductible for tax purposes 23 4Reversal of temporary differences due to sales
of assets to an affiliated company (14) -(19) 32
Impact from settling prior year taxesthat were under provided 1 3
Effective tax rate (18) 35
Effective tax rates on non-deductible expenses primarily reflect the varying relationship of the non-deductible expenses (which are relatively fixed over time) to changing levels of profit or loss from period to
period.
9. (LOSS) / EARNINGS PER ORDINARY STOCK UNIT
(Loss)/earnings per ordinary stock unit is calculated by dividing the net (loss)/profit attributable to shareholders by the number of ordinary stock units in issue during the year.
2004 2003
Net (loss)/profit attributable to shareholders (RM'000) (24,175) 57,015Number of ordinary stock units in issue ('000) 270,000 270,000Basic (loss)/earnings per stock unit (sen) (9.0) 21.1
10. PROPERTY, PLANT AND EQUIPMENT
Buildings Plant CapitalFreehold Leasehold and and project
land land improvements equipment in-progress TotalRM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Net book valueAt January 1, 2004 216,393 116,339 163,516 571,700 59,499 1,127,447Additions - 3,956 - - 49,994 53,950Disposals (11,069) (211) (5) (1,027) - (12,312)Write-offs (440) - (374) (3,891) - (4,705)Sales to an affiliated company - - - (4,108) - (4,108)Reclassifications 9,091 - 10,663 41,931 (61,685) -Depreciation charged to income statement - (1,709) (12,623) (55,848) - (70,180)
Net book valueAt December 31, 2004 213,975 118,375 161,177 548,757 47,808 1,090,092
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10. PROPERTY, PLANT AND EQUIPMENT (Continued)
Buildings Plant Capital
Freehold Leasehold and and project
land land improvements equipment in-progress Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At December 31, 2004
Valuation-1982 60,448 3,894 16,505 - - 80,847
Cost-Post 1982 net additions 153,527 129,797 266,824 1,181,048 47,808 1,779,004
Accumulated depreciation - (15,316) (122,152) (632,291) - (769,759)
Net book value 213,975 118,375 161,177 548,757 47,808 1,090,092
Net book value at
December 31, 2004 if assets
had been carried at cost less
depreciation: 166,169 115,903 161,167 548,757 47,808 1,039,804
At December 31, 2003
Valuation-1982 64,730 4,573 16,707 - - 86,010
Cost-Post 1982 net additions 151,663 125,840 256,810 1,196,188 59,499 1,790,000
Accumulated depreciation - (14,074) (110,001) (624,488) - (748,563)
Net book value 216,393 116,339 163,516 571,700 59,499 1,127,447
Net book value at
December 31, 2003 if assets
had been carried at cost less
depreciation: 159,877 113,737 163,500 571,700 59,499 1,068,313
2004 2003
RM'000 RM'000Leasehold land (Net book value)
Long leasehold (unexpired period of fifty years or more) 105,236 107,837Short leasehold 13,139 8,502
118,375 116,339
11. LONG TERM ASSETS AND RECEIVABLES
2004 2003RM'000 RM'000
Prepaid rentals and deposits 190,955 174,762Loans to dealers 6,256 6,295Employee receivables 2,128 2,680Others 8,257 4,001
207,596 187,738
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12. INTANGIBLE ASSETS - SOFTWARE
2004 2003RM'000 RM'000
Net book value at January 1 18,132 18,886Additions 620 1,108Write-off - (184)Sales to an affiliated company (11,177) -Amortisation charged to income statement (2,147) (1,678)Net book value at December 31 5,428 18,132
At December 31Cost 8,208 22,048Accumulated amortisation (2,780) (3,916)Net book value 5,428 18,132 The Company has undertaken major projects to upgrade and integrate its computer systems. The
development and software costs for completed projects have been capitalised.
13. INVENTORIES
2004 2003RM'000 RM'000
At cost:Crude oil 25,165 24,848Petroleum products 91,282 59,291Materials and supplies 7,139 7,958
123,586 92,097
As mentioned in note 2(d) to the financial statements, the cost of crude oil and petroleum productinventories is determined on the last-in first-out basis. Application of the first-in first-out basis in
determining the cost of crude oil and petroleum product inventories at December 31, 2004 would increase the value by RM186,040,000 (2003: RM136,827,000).
14. RECEIVABLES
2004 2003RM'000 RM'000
Trade receivables 60,397 66,967Less: Allowance for doubtful debts (2,802) (3,675)
57,595 63,292Others 222,273 137,811
279,868 201,103
Credit terms of trade receivables range from payment in advance to 90 days. All the receivables are inRinggit Malaysia.
At the balance sheet date, the concentration of credit risk with respect to trade receivables is mainly fromIndustrial and Lubricants customers. The allowances provided are considered sufficient to covercollection losses.
Other receivables are generally those of a non-trade nature that arose from other than the sale of products tothe Company's customers. Included in the current year balance is an amount of RM207,121,000 (2003 : RM127,867,000) for subsidies receivable from the Government of Malaysia under the AutomaticPricing Mechanism governing the sale of petroleum products.
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15. PAYABLES
2004 2003RM'000 RM'000
Trade payables 189,025 174,697Other payables 58,973 66,646
247,998 241,343
The currency exposure profile of trade payables is as follows:2004 2003
RM'000 RM'000
Ringgit Malaysia 188,325 166,601US Dollar 700 8,096
189,025 174,697
The credit terms for the Company's trade and other payables are generally 30 days.
Other payables are generally those of a non-trade nature that arose from other than the purchase of crude and petroleum products. Included in other payables is an amount of RM 2,617,000 (2003: RM5,978,000) for payroll liabilities.
16. PROVISION FOR CUSTOMER LOYALTY PROGRAMME
2004 2003RM'000 RM'000
At January 1 2,723 4,088Charged / (credited) to the income statement 289 (1,365)At December 31 3,012 2,723
The Company runs a customer loyalty programme. Customers participating in the programme are awarded points for purchases at participating service stations and these points are redeemable for the Company's products or gift vouchers. A provision has been made for the unredeemed and unexpired loyalty points based on past redemption experience.
17. PROVISION FOR RETIREMENT BENEFITS
The Company operates an unfunded defined benefit retirement plan for its regular national employees. The plan is valued by an independent actuary every three years using the projected unit credit method. The latest actuarial valuation was carried out in November 2003 and this valuation showed that the book provision is sufficient to meet the actuarially determined value of plan benefits.
The changes in the provision for retirement benefits under the defined benefits plan during the year were as follows:
2004 2003RM'000 RM'000
At January 1 63,138 61,264Net expense charged to the income statement 4,828 7,044Payments to separating employees and retirees (8,233) (3,967)Employees transferred out to affiliated companies (4,225) (1,203)At December 31 55,508 63,138
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17. PROVISION FOR RETIREMENT BENEFITS (Continued)
2004 2003RM'000 RM'000
The amounts recognised in the balance sheet are reconciled as follows:
Present value of unfunded obligations 39,250 53,007Unrecognised actuarial gains 16,258 10,095Unrecognised past service cost - 36 Net liability 55,508 63,138
Reflected on the balance sheet as:Current 2,238 2,141Non-current 53,270 60,997
55,508 63,138
The expense recognised in the income statement is as follows:
Current service cost 2,232 2,785Interest cost 3,542 4,372Net actuarial gains recognised (910) (59)Past service cost (36) (54)Total, included in staff costs (Note 7) 4,828 7,044
The charge to the income statement was included in the operating expenses and administrative and other expenses.
The principal actuarial assumptions used were as follows:2004 2003
% %
Discount rate 6.3 7.0Expected rate of salary increases 4.7 6.3
18. AMOUNTS DUE FROM / (TO) RELATED CORPORATIONS
The currency exposure profile of amounts due from related corporations is as follows:
2004 2003RM'000 RM'000
Ringgit Malaysia 150,960 119,965US Dollar 67,435 85,011
218,395 204,976
The currency exposure profile of amounts due to related corporation is as follows:
Ringgit Malaysia (16,510) (8,987)US Dollar (305,571) (297,114)
(322,081) (306,101)
These balances are unsecured and are generally settled within one month.
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19. BORROWINGS (UNSECURED)
2004 2003RM'000 RM'000
Floating interest rate loan from a related party 190,000 190,000Short term notes 300,000 170,000Bankers acceptances 173,000 132,000Revolving credits 103,000 80,000Bank overdrafts (Note 23) - 900
766,000 572,900
The floating interest rate loan was drawn down under a US$100 Million facility secured with ExxonMobil Services (Labuan) Limited. This is a one-year facility with an option for annual rollover at each year-end that could extend the facility until 2011. The Company has rolled-over the US$50 Million drawndown on this loan for another year to December 31, 2005. The principal outstanding in Ringgit Malaysia is fixed at the time of loan draw down thereby insulating the Company against foreign currency fluctuations.
The short term notes were issued under a RM300 Million 7-year Islamic Commercial Papers (ICP) Programme based on the principles of Bai' Inah. The ICP Programme which is available until May 2011, allows for the Company to issue short term notes of between 14 days and 12 months tenor through
competitive tender by the tender panel members or through private placement. This programme replaced the Company's RM250 Million Commercial Papers Issuance Facility (CPIF), which expired in May 2004.
The CPIF provided for the Company to issue notes of various durations not exceeding twelve months to the lowest bidder(s) among the tender panel members.
Interest rates and profit elements for the Company's borrowings depend on the lenders' cost of funds, and generally vary with the Kuala Lumpur interbank rates. The interest rates/profit elements ranged from 2.7% to 3.8% per annum during the year (2003: 2.8% to 6.9%).
20. DEFERRED TAXATION
2004 2003RM'000 RM'000
At January 1 78,613 77,325(Credited) / charged to the income statement (Note 8) (18,936) 1,288
At December 31 59,677 78,613
The components of deferred tax amounts after appropriate offsetting are as follows:
2004 2003RM'000 RM'000
Deferred tax liabilities:subject to income tax 57,287 75,787subject to real property gains tax 2,390 2,826
59,677 78,613
The components of deferred tax assets and liabilities prior to offsetting are as follows:
2004 2003RM'000 RM'000
Subject to income taxDeferred tax assets:Inventory valuation (52,091) (38,311)Provision for retirement benefits (8,481) (9,178)Others (1,036) (1,082)
(61,608) (48,571)
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20. DEFERRED TAXATION (Continued)
2004 2003RM'000 RM'000
Deferred tax liabilities:Excess of capital allowances over depreciation 118,310 123,752Others 585 606
118,895 124,358
Subject to real property gains taxDeferred tax liabilities:Property, plant and equipment 2,390 2,826
21. SHARE CAPITAL
2004 2003RM'000 RM'000
Authorised:300,000,000 ordinary shares of RM0.50 each 150,000 150,000
Issued and fully paid:270,000,000 ordinary stock units of RM0.50 each 135,000 135,000
22. RESERVES
2004 2003RM'000 RM'000
Capital redemption reserve (non-distributable) 8,000 8,000Retained profits (distributable) 377,057 424,560
385,057 432,560
The Company has sufficient tax credits under Section 108 of the Income Tax Act, 1967 to frank up to approximately RM323,562,000 (2003: RM281,619,000) of the retained profits as at December 31, 2004 if paid out as dividends. Additionally, subject to the approval of the tax authorities, the Company has a tax exempt account available to frank tax exempt dividends up to approximately RM206,000,000
(2003:RM206,000,000).
23. CASH AND CASH EQUIVALENTS
2004 2003RM'000 RM'000
Deposit, cash and bank balances 43,884 7,074Less: Deposit with a licensed bank included in the above (6,640) (6,474)Bank overdrafts (Note 19) - (900)
37,244 (300)
Deposit with a licensed bank represents monies held in accordance with the sale and purchase agreement relating to the Company's purchase of a participating interest in the Multi Product Pipeline System. The amount will be utilised for payment to the Inland Revenue Board in respect of the vendors' real property gains taxes.
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24. SIGNIFICANT RELATED PARTY DISCLOSURES
In the normal course of business, the Company undertakes, on an arms-length basis, a variety of transactions with these related parties. Such transactions include the sales and purchases of products, and the sharing of services and facilities at cost apportioned on a mutually agreed basis.
In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significant related party transactions.
2004 2003RM'000 RM'000
Purchases of crude oil from ExxonMobil Exploration and Production Malaysia Inc. 4,248,515 3,154,008
Purchases of petroleum products from: ExxonMobil Asia Pacific Pte. Ltd. 1,028,395 678,791ExxonMobil Malaysia Sdn. Bhd. 407,821 278,202
Sales of petroleum products to:ExxonMobil Asia Pacific Pte. Ltd. 1,504,575 1,020,487ExxonMobil Malaysia Sdn. Bhd. 1,355,834 963,314ExxonMobil Borneo Sdn. Bhd. 362,005 261,988
Central management, shared facilities and services costsmainly between ExxonMobil Asia Pacific Pte. Ltd., ExxonMobil Global Services Company andExxonMobil Exploration and Production Malaysia Inc.
Charged from: 63,848 48,367Charged to: (18,113) (18,278)
45,735 30,089
Sales of assets to ExxonMobil Business Support Centre Malaysia Sdn. Bhd. 15,285 -
Retirement benefits paid on the net transfers of employees mainly to ExxonMobil Exploration and Production Malaysia Inc. and ExxonMobil Business Support Centre Malaysia Sdn. Bhd. 4,225 1,203
At year end 2004 and 2003 respectively, the amounts due to and from related corporations are mainly in relation to the above described transactions.
25. COMMITMENTS FOR CAPITAL EXPENDITURES
2004 2003RM'000 RM'000
Commitments for the purchase of property, plantand equipment authorised by the Directors butnot provided for in the financial statements:
Contracted 14,698 18,072Not contracted 5,712 15,460
20,410 33,532
The Company is a subsidiary of ExxonMobil International Holdings Incorporated, whose ultimate holding company is Exxon Mobil Corporation. Both corporations are incorporated in the United States of America. Exxon Mobil Corporation is regarded by the Directors as the ultimate holding company of the Company. Therefore, Exxon Mobil Corporation's other subsidiaries are considered as related parties to the Company.
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26. CONTINGENT LIABILITIES (UNSECURED)
2004 2003RM'000 RM'000
Guarantees to third parties to secure housing andcar loans for employees under the Company'sbenefits plan 18 61
Litigation and other claims against the Company 150 150168 211
Litigation and other claims against the Company included a court case filed by a haulage contractor for alleged damages in relation to a contract termination.
In addition to the above, EMB's sister affiliate, ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), has been in litigation with the Malaysian Inland Revenue Board (MIRB) since 1999. The litigation primarily involves disallowed income tax deductions for withholding tax payments on services provided to EMEPMI by other ExxonMobil affiliates during the tax years 1983 to 1991. The Company agreed in 1999 with the MIRB to be bound by the final outcome of the litigation between EMEPMI and MIRB as the issues and facts are similar. In 2003, the High Court, sitting as an appeal court, dismissed EMEPMI's appeal on the matters. EMEPMI subsequently filed a notice of appeal and is currently awaiting a hearing before the Court of Appeal. The amount of the contingent liability in relation to this case is not disclosed as it is still a subject to be determined by the Court and such disclosure may be prejudicial to the Company's dispute on the subject matter. In the event that the Court of Appeal were to rule against EMEPMI, such ruling is not expected to have a materially adverse effect on the Company's operations or financial condition.
27. LEASING COMMITMENTS
2004 2003RM'000 RM'000
As at balance sheet date, leasing commitments under non-cancellable operating leases are as follows:
Within 1 year 11,761 19,661After 1 year but within 5 years 26,392 37,203After 5 years 14,259 1,186
52,412 58,050
Leasing commitments where milestone payments are dependent upon approvals from relevant authorities
or the occurrence of events as specified under the saidlease agreements 28,323 24,306
28. COMPARATIVE FIGURES
In Note 23, the Company has reclassified an amount of RM6,474,000 in the 2003 financial year, from Long Term Assets to Deposit With a Licensed Bank, to conform with the current year's presentation.
29. APPROVAL OF FINANCIAL STATEMENTS
The financial statements have been approved for issue in accordance with a resolution of the Board ofDirectors on February 24, 2005.
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STATEMENT BY DIRECTORS PURSUANT TOSECTION 169(15) OF THE COMPANIES ACT, 1965
We, Robert Fisher and Dato' Zainal Abidin Putih, two of the Directors of Esso Malaysia Berhad, state that in the opinion of the Directors, the financial statements set out on pages 27 to 44 are drawn up so as to give a true and fair view of the state of affairs of the Company as at December 31, 2004 and of the results of the Company and its cash flows for the year ended on that date in accordance with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.
In accordance with a resolution of the Board of Directors dated February 24, 2005.
...............................Robert Fisher
.........................................................Y. Bhg. Dato' Zainal Abidin Putih
Kuala Lumpur,February 24, 2005
STATUTORY DECLARATION PURSUANT TOSECTION 169(16) OF THE COMPANIES ACT, 1965
I, Zain C. Willoughby, the Director primarily responsible for the financial management of Esso Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 27 to 44, are to the best of my knowledge and belief correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
.......................................Zain C. Willoughby
Subscribed and solemnly declared by the above named Zain C. Willoughby at Kuala Lumpur in Malaysia onFebruary 24, 2005 before me.
.......................................Commissioner for OathsKuala Lumpur
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As at March 16, 2005
Class of stocks: Ordinary stock unit (RM0.50)Voting right: One vote per stock unit
Size of No. of % of Number of % of Issued Holdings Stockholders Stockholders Units Held Capital
Less than 100 279 2.368 14,751 0.006100 - 1,000 4,084 34.664 3,882,730 1.4381,001 - 10,000 6,253 53.071 24,507,568 9.07710,001 - 100,000 1,094 9.286 28,073,733 10.398100,001 - 13,499,999 71 0.603 38,021,218 14.08113,500,000 and above 1 0.008 175,500,000 65.000
TOTAL 11,782 100.00 270,000,000 100.000
THIRTY LARGEST STOCKHOLDERSAs at March 16, 2005
Name No. of % of IssuedUnits Held Capital
1. ExxonMobil International Holdings Inc. 175,500,000 65.002. Employees Provident Fund Board 10,845,700 4.023. Amanah Raya Nominees (Tempatan) Sdn Bhd 2,312,000 0.86
(Skim Amanah Saham Bumiputera)
4. Lembaga Tabung Haji 2,297,900 0.855. Johan Enterprise Sdn Bhd 1,517,000 0.566. Universiti Malaya 1,330,000 0.497. Amanah Raya Nominees (Tempatan) Sdn Bhd 1,311,900 0.48
(Amanah Saham Wawasan 2020)
8. Permodalan Nasional Berhad 1,075,000 0.409. Menteri Kewangan Malaysia 1,034,462 0.38
(Section 29 (SICDA))
10. RHB Nominees (Tempatan) Sdn Bhd 837,000 0.31(RHB Asset Management Sdn Bhd for Pertubuhan Kebangsaan Melayu Bersatu atau UMNO)
11. Quarry Lane Sdn Bhd 800,000 0.3012. Mayban Securities Nominees (Tempatan) Sdn Bhd 724,900 0.27
(UOB-Kay Hian Pte Ltd for Dr. Deva Dassan Solomon)
13. Kumpulan Wang Amanah Pencen 717,600 0.2614. Asia Life (M) Berhad 660,000 0.24
(as Beneficial Owner (PF))
15. Citicorp Nominees (Asing) Sdn Bhd 633,200 0.23(CBNY for DFA Emerging Markets Fund)
16. RHB Nominees (Asing) Sdn Bhd 583,000 0.22(GK Goh SPL for Tan Leng Yeow)
17. Tham Tatt Yow @ Tham Ah Chye 530,000 0.2018. Eng Guan Chan, Sdn. Berhad 488,800 0.1819. Yeoh Kean Hua 401,000 0.1520. Neoh Choo Ee & Company, Sdn. Berhad 375,000 0.1421. Asia Life (M) Berhad 347,000 0.13
(As beneficial owner (NPF))
22. Kumpulan Wang Amanah Pencen 315,600 0.1223. Malaysia Nominees (Tempatan) Sendirian Berhad 312,000 0.12
(For Dr. Deva Dassan Solomon)
24. AXA Affin Assurance Berhad 312,000 0.1225. Kim Poh Holdings Sdn Bhd 300,000 0.1126. Tee Keng Boon & Sons Sdn Bhd 300,000 0.1127. Citicorp Nominees (Tempatan) Sdn Bhd 299,000 0.11
(For Dr. Deva Dassan Solomon)
28. New Tong Fong Plywood Sdn Bhd 280,000 0.1029. Ong Boo Goh 265,000 0.1030. HSBC Nominees (Tempatan) Sdn Bhd 261,000 0.10
(For Dr. Deva Dassan Solomon)
206,966,062 76.66
SUBSTANTIAL STOCKHOLDERAs at March 16, 2005
1. ExxonMobil International Holdings Inc. 175,500,000 65.00
Information on StockholdingsInformation on Stockholdings
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FEDERAL TERRITORY Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book Value315, Jalan Ampang F 4,659 Service Station 01.12.1967 14 2,873,816.00245, Jalan Bukit Bintang F 2,137 Service Station 01.12.1969 31 2,356,822.0029, Jalan Damansara Indah F 1,673 Service Station 01.12.1973 35 1,061,002.00125, Jalan Maharajalela F 789 Service Station 01.12.1962 39 1,499,079.00Lot 31362, Mukim Petaling F 2,354 Service Station 01.12.1986 18 1,403,894.00Lot PT 11134, Jalan Segambut F 1,734 Service Station 01.11.1992 13 2,186,285.00Lot 49260, Mukim Kuala Lumpur F 1,714 Service Station 01.06.1968 17 646,503.00Lot 3125, Mukim of Petaling F 2,080 Service Station 01.01.1987 16 1,527,351.00PT 1642, Sungai Untut, Setapak F 1,757 Service Station 01.12.1988 17 2,026,834.00Lot 26495, 6 ¼ ML Jalan Sg. Besi, Mukim Petaling F 2,250 Service Station 01.12.1990 15 1,941,907.00Lots 51 & 52, Section 98, Kuala Lumpur F 1,405 Service Station 01.12.1990 15 3,229,083.00Lot 199 & 200, Section 96, Kuala Lumpur F 2,017 Service Station 01.08.1993 12 5,562,989.00Lot 1758, Mukim Setapak, Kuala Lumpur F 1,926 Service Station 01.08.1993 11 3,610,191.00PT 22391, Mukim Cheras F 2,769 Service Station 01.11.1993 11 2,789,961.00Lot 435, (PT 32725), 14, Jalan Cheras F 4,048 Service Station 01.06.1995 10 3,427,999.00Lot 26494, Mukim Petaling, Wilayah Persekutuan F 5,669 Service Station 01.12.1996 10 6,249,871.00Part of Lot 1280, Jalan Medan Midah, Kuala Lumpur F 929 Vacant Land 01.12.1973 N/A 70,000.00Lot No. 1853 & 1848, 69, Jalan Dang Wangi F 1,496 Service Station 01.12.1962 17 2,644,723.00Lot No. 126-129, Sek 65, Jalan Pasar F 983 Vacant Land 01.12.1962 N/A 928,389.00Bina Puri Sdn. Bhd., Taman Connaught F 2,931 Vacant Land 01.12.1986 N/A 1,029,148.00Lot 18113 Mukim Petaling, Kuala Lumpur (EWLINK) F 2,974 Service Station 01.01.2004 1 6,592,895.50Lot No. 293, PT46 Sek. 63, Esso Jalan Pekeliling L 1,406 Service Station 31.03.1972 04.03.2012 18 4,007,362.49Lot No. 20021, Jalan Genting Kelang, Mukim Setapak L 1,987 Service Station 10.10.1987 09.10.2053 16 1,358,898.18HS(D) 51787-51795, Mukim Kuala Lumpur L 1,715 Service Station N/A 10.10.2085 15 1,670,122.20Lot No. 64, Sek. 88, Bandar Kuala Lumpur L 1,917 Service Station N/A 10.04.2005 27 164,100.02HS(D) 77348, P.T. 107, Sek. 92A, Jalan Sg. Besi, Kuala Lumpur L 2,081 Vacant Land N/A 09.11.2053 N/A 2,175,292.86PT. 4062, Jalan Mewah, Cheras, Kuala Lumpur L 4,622 LPG Redistribution Centre 10.01.1996 09.01.2056 8 1,612,197.64Lot 23440, Mukim Setapak L 1,417 Service Station 25.02.1995 24.02.2083 8 2,651,201.84Lot 8094, Jalan Kuchai Lama L 3,437 Service Station N/A 04.03.2086 16 2,181,516.25PT 1604 & 1668, Mukim Ampang Esso Taman Shamelin L 2,437 Service Station 27.06.1994 30.06.2052 10 2,585,608.74
SELANGORLots 83-88, Section 3, Banting F 1,115 Service Station 01.12.1962 19 936,895.00Lots 499 & 82, Section 24, Klang F 1,392 Service Station 01.06.1966 17 1,113,218.00Lots 222-226, Section 23, Klang F 932 Service Station 01.12.1962 15 1,558,607.00Lot 230, Mukim of Klang F 1,439 Service Station 01.12.1962 43 570,968.00Lot 1352, Mukim of Damansara F 1,282 Service Station 01.10.1967 30 1,351,569.00Lots 9179 & 9180, Mukim Sungai Buloh, Daerah Petaling F 4,138 Service Station 01.12.1990 14 4,040,608.00PT 13123, PT 13122 Mukim Raja Kelang F 3,085 Service Station 01.12.1990 15 2,397,035.00PT 19199, Jalan Sg. Rasa, Mukim Kapar, Kelang F 1,765 Service Station 01.08.1993 12 1,932,546.00Lot 1115 & 1116, Petaling Jaya F 2,085 Service Station 01.08.1993 12 3,615,471.00PT 12368, Mukim Kelang F 3,188 Service Station 01.12.1993 11 2,526,022.00PT 3637, Mukim Telok Panglima Garang F 2,741 Service Station 01.10.1993 12 1,654,387.00PT 15209, Mukim Damansara, Petaling Jaya F 2,022 Service Station 01.05.1994 10 2,380,210.00Lot PT 43708, Mukim Kelang F 2,395 Service Station 01.12.1995 9 3,123,860.00PT 22493, Mukim Batu Gombak F 2,684 Service Station 01.12.1996 9 2,688,206.00PT 1444, Mukim Sepang F 4,047 Service Station 01.07.1997 9 3,084,711.00PT 46121, Mukim Daerah Klang, Selangor F 2,345 Service Station 01.12.1998 9 3,806,187.00Lots 21696 & 21728, Mukim Kapar, Daerah Klang F 4,032 Service Station 01.03.1998 7 3,855,718.00Lot 703, Mukim Bukit Raja, Klang F 4,088 LPG Redistribution Centre 01.06.1993 15 2,378,333.00Lot 19, Sec. 18, Ampang Pechah, Kuala Kubu Bharu F 2,954 Service Station 01.12.1964 40 339,892.00Lot 9353 HS (D) 41833, Daerah Klang,Esso Taman Sri Muda P2 F 1,481 Vacant Land 01.09.1999 N/A 1,237,026.00Lot 9340 HS (D) 41825, Daerah Klang, Esso Taman Sri Muda P3 F 1,609 Vacant Land 01.09.1999 N/A 1,386,648.00MG294 Lot 584 BT 18, Sungei Chua, Mukim Kajang, District of Ulu Langat F 2,789 Filing Station 01.06.2000 8 3,402,504.00HSD 94307 PT 28233 & HSD 94308 PT 28234 Bukit Rahman Putra Sungai Buloh, Selangor F 4,064 Vacant Land 01.06.2000 N/A 2,028,218.59HSM 28698 PT No. 59765 Mukim & District of Klang Esso Jalan Teluk Pulai F 1,795 Filing Station 01.06.2000 5 2,573,022.00HSD 15731 PT 8564 Bandar Serendah Tambahan F 3,037 Service Station 30.09.2001 8 5,255,487.00HSD 72700 & 72701 MK Sg. Buloh, Esso Meru 2 F 3,697 Service Station 30.04.2002 1 4,655,880.50HSD 85727 PT 45854 MUK Kapar DisKlang Perviously Grn 43494 Lot 37456& Grn 43497 Lot 37449 MK & Dist Klang F 3,697 Service Station 19.04.2004 1 4,846,835.10PT 21440 Daerah Kelang, Selangor L 4,048 Service Station 09.05.1994 08.05.2093 10 5,372,055.74
LIST OF PROPERTIES OWNEDAS AT DECEMBER 31, 2004
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Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValuePT 1517, Mukim Batu, Gombak, Batu 8, Jalan Rawang L 2,137 Service Station 24.01.1979 23.01.2039 14 2,035,657.28No. PT 2204, HS(D) 15872, Mukim Ulu Kelang L 1,233 Vacant Land 03.03.1982 23.04.2012 18 396,955.06Lot 10513, Taman Putra, Mukim Ampang L 1,644 Service Station 31.10.1979 17.09.2009 19 404,926.39Lot 12276, Mukim of Batu Selangor, Mukim Batu L 1,440 Service Station 31.08.1980 10.07.2079 19 955,460.20Lot 4, Jalan Raya 2, Petaling, Serdang L 2,448 Service Station 01.04.1984 31.03.2014 18 987,981.17Lot PT 334, Mukim Petaling, Daerah Petaling L 3,577 Service Station 14.07.1993 13.07.2092 9 4,266,877.20PT 7234, HS(M) 5288 Daerah Petaling, Sg. Buloh L 2,370 Service Station 31.12.1987 30.12.2086 16 1,567,782.88Lot 1850, Mukim Ampang L 1,413 Service Station 07.07.1986 06.07.2085 14 1,327,166.12PT 23489, HS(M) 14599, Mukim Batu, Gombak, Selangor L 2,017 Service Station 28.03.1991 27.03.2021 9 1,874,435.95PT 20061, Daerah Petaling Selangor L 1,773 Service Station 30.06.1995 29.06.2094 10 2,109,245.20Lot 49, Sec 27, Lorong Utara, Petaling Jaya L 1,858 Service Station N/A 03.10.2022 15 993,758.08Lot No. 15, Road 201, Petaling Jaya, Selangor L 4,047 LPG Redistribution Centre 28.08.1960 27.08.2059 8 1,363,464.80PT 18428, Mukim Batu, Gombak L 2,118 Service Station N/A 25.09.2048 14 2,167,535.00PT 4675, Jalan Balakong, Mukim Petaling L 1,530 Service Station 25.03.1992 24.03.2091 13 1,372,710.90PT 902, Mukim Sg. Buloh, Damansara Highway L 3,055 Service Station N/A 01.02.2079 35 2,767,584.20PT 30165, Jalan Kuari, Mukim Ampang, Dist. Of Ulu Langat L 1,672 Service Station N/A 03.11.2091 11 2,252,252.74PT 11448, Taman Subang Indah,Mukim Damansara L 3,273 Service Station N/A 09.10.2090 11 732,945.00PT 12581, Tempat Batu 10, Petaling Tin, Mukim Damansara L 2,580 Service Station 1995 07.12.2094 8 3,086,442.00PT 7906, Mukim Bukit Raja, Petaling, Selangor L 3,237 Service Station N/A 07.10.2083 8 3,392,955.00Lot 390, Sect. 3, Bandar PJ, Jalan Selangor L 1,057 Service Station 28.02.1956 28.02.2016 16 402,447.39PT 8542, Mukim Kapar, Daerah KlangEsso North Port L 1,979 Service Station 25.08.1997 28.02.2098 4 3,846,955.34PT 2942 Mukim Rawang, Daerah GombakEsso Country Homes Rawang L 2,723 Service Station 03.10.1994 18.09.2089 10 3,430,176.47Seksyen 5, Pekan Meru, Mukim Kapar L 1,859 Service Station N/A 30.09.2095 15 2,273,912.32PT 30186, Mukim Ampang, Ulu KelangEsso Pandan Indah L 2,186 Service Station 24.04.1995 30.04.2094 8 4,323,881.00Esso Jln Semenyih Kajang, HSM 05979 PT01856HSM 02793 PT 4350, Daerah Ulu Langat, Selangor North Bound L 31,844 Vacant Land 31.10.1967 31.10.2066 N/A 2,195,608.70Esso Jln Kebun South Bound, Batu 3 Puchong, Shah Alam L 2,787 Service Station 31.12.2001 30.06.2099 10 6,713,272.82
PERAKLot 2672, Mukim of Bidor F 902 Service Station 01.12.1962 43 569,106.00Lot 2225, Teluk Intan F 892 Service Station 01.12.1962 43 185,849.00Lots 3257, 3258 & 32A, District of Larut & Matang F 1,640 Service Station 01.06.1964 36 718,283.00Lot 2505, Taiping F 1,280 Filing Station 01.12.1962 43 280,844.00Lots 2878 & 2875, Mukim of Parit Buntar, Krian F 1,390 Service Station 01.06.1965 40 485,913.00Lots 2168-2172, Taiping F 756 Service Station 01.12.1962 35 279,149.00Lot 30480, Jalan Gopeng, Daerah Kinta F 3,895 Service Station 01.12.1965 14 1,038,691.00Lots 3637-3643, Ipoh, Daerah Kinta F 1,049 Filing Station 01.03.1963 35 463,816.00Lot 2738N,Ipoh, Daerah Kinta F 1,748 Service Station 01.12.1962 16 1,127,831.00Lots 916-919, Ipoh, Daerah Kinta F 693 Service Station 01.12.1962 43 405,130.00Lots 3045N-3049N, Ipoh, Daerah Kinta F 929 Service Station 01.05.1963 42 253,556.00Lot 103476 & 30982, Mukim Ulu Kinta F 1,463 Service Station 01.05.1967 16 751,902.00Lot 17898, Mukim of Teja, Ipoh F 2,200 Service Station 01.12.1964 40 256,124.00Lot 29881, Pusing, Daerah Kinta F 1,796 Service Station 01.12.1962 16 548,577.00Lots 455-462, Menglembu, Daerah Kinta F 1,479 Service Station 01.12.1967 36 617,396.00Lot 61406, Jalan Tasek, Ipoh F 1,415 Service Station 01.08.1984 N/A 980,294.00PT 146342, Mukim Hulu Kinta, Daerah Kinta F 2,163 Service Station 01.12.1998 7 1,492,499.00Grant Nos. 1115-1117 & 1128-1130, Comprising 6 Lots,245, Jalan Besar, Sg. Siput F 847 Service Station 01.12.1962 15 323,789.00Lot 10321 & 4459, 2 1/4 Mile, Ipoh, Perak F 2,582 Service Station 01.06.1968 43 602,706.00PT40, Kampar, Tasek Ind. Estate Site, Ipoh L 819 Service Station 07.05.1965 06.05.2064 20 50,129.36Lot 1803 Mukim Asam Kumbang L 18,057 Vacant Land 02.12.1929 01.12.2028 N/A 78,626.86Lot 162, Town of Tg. Tualang, District Kinta L 719 Service Station 06.08.1995 05.08.2005 43 266,694.00Lot No. 964 & Lot No. 100 L 26,305 Tasek Bulk Plant 1969 26.09.2068 39 1,339,889.69PT 153632, Mukim Ulu Kinta, Ulu Kinta L 3,610 Vacant Land N/A 28.12.2096 N/A 2,189,331.36PT 4825, Daerah Manjung L 3,717 Vacant Land N/A 18.07.2057 N/A 1,697,364.76Esso Falim HD9D KA72477, PT 156405 Plot 346 Menglembu Industrial Estate, MK Hulu Kinta L 2,931 Vacant Land 31.03.2000 31.10.2097 N/A 1,621,594.10
PENANGLot 1991, Section 12, George Town, Daerah Timor Laut F 1,395 Service Station 01.12.1969 34 813,863.00Lots 425, 433 & 144, Mukim 7, Province Wellesley F 1,145 Service Station 01.10.1967 43 163,954.00Lot 402, Mukim 1, Daerah Central Penang F 1,627 Service Station 01.12.1967 13 1,170,279.00Lot 33, Section 4, Daerah Timor Laut F 1,774 Service Station 01.11.1973 27 965,254.00Lot 1684 & 378, 79, Jalan Mcalister F 1,620 Service Station 01.11.1970 33 1,363,018.00
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Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValueLot 389, 32A, Jalan Ayer Itam F 2,126 Service Station 01.12.1966 13 1,261,100.00Lot 1791, Tanjong Bungah F 781 Filing Station 01.12.1962 9 509,810.00Lot 1011, 449 & 452, 539, Jln Dato Keramat F 993 Service Station 01.12.1962 43 979,093.00PT 783 & 784, Section 4, Seberang Perai Utara F 1,998 Service Station 01.12.1962 43 1,922,949.00Lot 140, Section 2, Seberang Prai Utara F 1,859 Service Station 01.12.1969 13 884,978.00Lot 152, Section 9, Jelutong F 5,660 Service Station 01.12.1962 43 1,407,815.00Lots 95-125, 128, Lot 2328-2338, Bagan Luar F 43,780 Storage & Dist. Plant 01.12.1962 43 11,330,184.00Lots 7632, 7633, 7634 & 622, Sungai Nibong, Mukim 13 F 1,536 Service Station 01.12.1989 15 1,182,556.00Lot 3565, Mukim 6, Seberang Prai Tengah, Butterworth F 2,969 Service Station 01.12.1996 10 3,397,389.00Lot No Part 229/XIV, Mukim Bukit Mertajam F 1,009 Vacant Land 01.12.1962 N/A 26,000.00Lot 1213, Mukim 4, Daerah Seberang Prai, Esso Jln Permatang Pauh F 6,817 Filing Station 01.10.1999 18 3,436,122.00GM1392 Lot 2555 MK10 Seberang PraiEsso Sg. Dua F 3,252 Service Station 30.04.2002 3 1,658,834.73GM137 Lot 648 MK15 Seberang PraiEsso Jalan Rodhzan F 4,181 Service Station 30.04.2002 3 2,273,500.00HSM 414 Lot 2779 MK4 Seberang Perai Tengah P.P.Esso Hussein Onn F 4,097 Service Station 30.09.2001 6 5,281,452.47Pegangan No. 2339, Sek 4, Bandar Butterworth, Jetty Product /Daerah Seberang Perai Utara L 1,566 Marine Discharge N/A 24.01.2025 N/A NilEsso Jalan Jelawat L N/A Service Station N/A N/A 2 5,383,090.10
KEDAHLot 4136, Mukim of Sungai Petani F 919 Service Station 01.12.1962 33 677,001.00Lot 20, Section 49, Sungai Petani, Daerah Kuala Muda F 873 Service Station 01.12.1962 27 258,404.00Lot 151 & 3056, Mukim Pengkalan Kundor F 239 Service Station 01.12.1963 30 637,820.00PT 3928, Mukim Alor Malai, Alor Setar F 2,569 Service Station 01.08.1993 12 2,767,283.00PT 1595, Mukim Kulim, Daerah Kulim F 2,913 Service Station 01.06.1996 9 2,701,744.00Lot 22384, Mukim Sg. Petani, Daerah Kuala Muda F 2,625 Service Station 01.03.1997 8 2,971,957.00GM 910 Lot 005393, MK Pengkalan Kundur Kota Setar F 45,228 Vacant Land 30.09.2001 N/A 1,680,000.00
NEGERI SEMBILANLot 3246 Daerah Jempol F 2,937 Vacant Land 01.08.1984 N/A 1,075,697.00Lot 4590, Village of Nilai F 839 Service Station 01.12.1965 15 384,503.00Lot 1305, Port Dickson F 1,821 Service Station 01.11.1970 34 859,291.00Lots 2645 & 2647, Mukim of Port Dickson F 41,816 Refinery 01.06.1984 20 165,138.00(Lot 2646 & 2648), 1926-1930, 1593-1595, 1805, 1838, 1803, 1836, 1757, 2278 & 1222, Mukim Port Dickson F 1,590,154 Refinery 01.06.1984 20 11,007,355.00Lot 18171, (PT 940), Batu 2, Jalan Ampangan,70400 Seremban F 2,074 Filling Station 01.12.1990 16 958,585.00Lot No PT 12697 - 12699, Tuanku Jaafar Industrial Estate, Seremban F 30,171 Lubes Dist. Centre 01.11.1994 11 5,164,920.00Lot No 33648 - 3471, Templer Road Town (Esso Tmn Tun Dr. Ismail) F 798 Service Station 01.11.1966 17 246,579.00HS(D) 120088, Esso Bandar Baru Nilai-1 F 180 Service Station 01.06.2000 6 4,456,622.00HS(D) 120088, Esso Bdr Baru Nilai-2 F 4,047 Vacant Land 01.06.2000 N/A 2,941,446.00HS(D) 110853, Esso Bdr Baru Nilai-3 F 4,706 Vacant Land 01.06.2000 N/A 3,483,517.00HSD 12088PT 14995, MKM Labu Seremban F 43,561 Vacant Land 30.09.2001 N/A 142,601.80HSD 31135 & 31136, MKM of Rantau, Seremban F 23,239 Vacant Land 30.09.2001 N/A 1,148,410.90PT 3861, Mukim Rasah, Seremban L 3,437 Service Station N/A 10.04.2089 13 1,377,683.649 Lots Land at PD L 717,747 Vacant Land 1972 30.09.2060 N/A 563,271.24Pipeline to Jetty, Lots 135-141 L N/A Pipeline N/A 09.12.2021 N/A NilPT 14782 Mukim Ampangan, Panchor Jaya L 4,319 Filing Station N/A 09.09.2092 7 2,961,204.51PT 14782, Mukim Ampangan, Persiaran Senawang 1 L 3,659 Filing Station N/A 30.09.2093 7 2,649,823.65MPP and KVDT L N/A MPP/KVDT Facilities 01.03.2001 N/A N/A 19,964,089.98
MALACCALots 94-101, Village of Alor Gajah, Northern District F 1,177 Service Station 01.06.1965 40 808,473.00Lots 394-397, Town of Area XXIX, Central Malacca F 645 Service Station 01.12.1964 40 503,183.00Lots 31-33 & 1632, Section 111/M, Village of Masjid Tanah, Northern District F 592 Service Station 01.12.1962 42 261,400.00Lot 817, Klebang Kechil F 1,105 Service Station 01.12.1962 43 498,081.00Lots 4 to 8 , Mukim of Jasin, Southern District F 822 Service Station 01.12.1966 39 481,960.00Lot 140, A, Jalan Semabok F 743 Service Station 01.12.1962 42 539,737.00Lot 262, (Lot 467), Mukim Bertam, Daerah Melaka Tengah F 3,716 Service Station 01.10.1997 17 1,877,792.00
Tenure L.A. Description of Properties Acquisition Date Expiry Date Age Net Book ValueLot 527, 78, 770, 462, Jln. Munsi Abdullah, Malacca F 2,251 Service Station 01.12.1962 43 1,219,838.00Lot 7529, Mukim Bukit Baru Malacca F 2,788 Service Station 01.05.1993 12 2,536,260.00Holding No. 153, Bukit Baru Malacca F 1,652 Service Station 01.06.1963 41 858,453.00Grant No. 150, Melaka Tengah F 1,839 Vacant Land 01.12.1966 N/A NilLot 511, & Qtr 385, District of Malacca Central L 268 Service Station N/A 24.02.2070 42 267,737.96
JOHORLot MLO 643 & Lot 3250, Mukim of Simpang Kanan, Batu Pahat F 2,327 Service Station 01.12.1966 14 1,139,762.00Lot 890 Township Segamat, District of Batu Pahat F 976 Service Station 01.12.1962 43 307,636.00TLO 2084, Jln Salleh F 1,114 Service Station 01.12.1962 14 636,495.00Lot 535, Township of Bandar Penggaram, District of Batu Pahat F 1,897 Service Station 01.09.1963 40 754,168.00TLO 4111 Bandar Johore Bharu F 1,985 Service Station 01.11.1972 18 1,218,021.00Lot 456, Town of Mersing F 1,232 Service Station 01.12.1962 20 227,958.00Lot 15317, Bandar of Johore Bharu F 1,394 Service Station 01.04.1966 39 1,168,597.00Lot 151, Township of Pontian Kechil, District of Pontian F 841 Service Station 01.12.1962 19 437,219.00Lot 480, Mukim Tebrau F 1,745 Service Station 01.07.1987 18 827,786.00Lot 375, Mukim Bandar Penggarang F 2,414 Vacant Land 01.12.1966 N/A 156,000.00No. PTB 4771 Bandar Kluang, Johor F 1,940 Service Station 01.12.1989 16 812,976.00P.T.D. 54009 MK Tebrau, Johor Bharu F 2,021 Service Station 01.12.1990 13 1,557,748.00Lot 25729, Mukim Kluang F 3,608 Service Station 01.12.1993 13 2,055,967.00Lot 6280, Town & District of Johore Bharu F 5,933 Service Station 01.12.1996 9 4,992,939.00PTD 127533, Mukim Plentong, Daerah Johor Bharu F 4,624 Vacant Land 01.12.1998 N/A 4,506,394.00Lot 18302, Jln Kebun Teh, Johor, HSD 251562 PTD 111903 Mkm Plentong F 1,564 Service Station 01.12.1962 18 1,089,451.00Esso Bandar Sri Alam 2 F 3,572 Vacant Land 01.06.2000 N/A 4,803,458.00Land Title CT3951, Sek 7 F 372 Service Station 01.12.1962 39 244,221.00QT(R) 477, Kg. Melayu Majidee, Johor F 2,788 Service Station 01.01.1991 13 2,392,738.00HSD 137048, PTD 27075, MK Tebrau Johor Bahru F 21,466 Vacant Land 30.09.2001 N/A 1,819,855.00PTD 149703 Mukim Plentong, District Johor Bahru F 3,016 Service Station 23.09.2003 N/A 3,162,867.56Lot 2055, Jalan Mengkibol, Kluang L 2,300 Service Station 21.10.1978 20.10.2008 22 341,171.86Esso Jln Dewata, JB, HS(D) 251614, P.T. 20417, Bandar & Daerah JB L 2,406 Filing Station N/A 30.07.2095 8 4,412,633.34PT87837, Mukim Pulai, Daerah Johor Bahru L 2,274 Filing Station N/A 31.05.2096 7 4,428,538.57Esso New Tampoi 2, PT No. D64145, HS(D) 216976, Mukim Tebrau, Johor Bahru L 4,298 Service Station N/A 26.07.2093 13 4,634,775.10
TERENGGANULot 1745, Daerah Kuala Terengganu F 770 Service Station 01.08.1969 36 538,722.00Lots 108 & 109, Part of 102, Town of Chukai F 1,122 Service Station 01.12.1962 21 514,359.00Lot 2904-2907, Mukim Batu Buruk F 1,649 Service Station 01.11.1992 13 1,553,714.00Lot 3550, Dungun SS L 1,532 Service Station 30.03.1970 27.03.2030 43 179,157.81
PAHANGLots 59-63, Section 18, Kuantan F 17,461 Service Station 01.12.1962 41 620,350.00Lot 7171, Mukim Kota Kuantan F 1,181 Service Station 01.12.1967 14 1,025,078.00Lot 9141, PT 2266, Mukim Kota Kuantan F 1,046 Service Station 01.12.1966 34 854,494.00Lot 14, Section 20, Bentong F 1,022 Service Station 01.12.1967 38 151,792.00Lot 1804, Mukim Sabai Bentong, Esso Karak F 1,971 Service Station 01.10.1968 37 361,820.00Lots 73-76, Section 8, Raub F 889 Service Station 01.05.1964 43 464,933.00PT28106, Mukim Kuala Kuantan F 3,232 Vacant Land 01.08.1993 N/A 902,304.00PT29313, Mukim Kuala Kuantan F 1,961 Service Station 01.12.1993 13 1,726,242.00Lot 2, Sec. 19, Bentong, Pahang F 50 Filing Station 01.12.1962 39 151,792.00GM 1492, Sek 10, Bandar Temerloh F 1,268 Service Station 01.10.1992 35 587,665.00HS(M) 1187, Esso Kuala Lipis F 4,048 Service Station 01.09.1995 40 1,230,000.00Title CT3952, Sek 8, Raub F 945 Vacant Land 01.12.1962 N/A 92,001.00Lot 4691, Mukim Kuala Kuantan L 5,771 LPG Redistribution Centre 31.01.1957 31.12.2055 14 597,508.71
KELANTANLots 231, 233, 1 Lorong Minyak Gas F 6,227 Phased-Out Dist. Plant 01.07.1987 43 331,959.00Lot 171, Jalan Sultan Ibrahim, Kota Bharu L 1,742 Service Station 31.03.1964 13.03.2063 21 246,513.63Lot 552, Bandar Machang L 1,030 Service Station N/A 12.10.2059 15 444,372.95
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NOTICE IS HEREBY GIVEN that the Forty-sixth Annual General Meeting of the Company will be held at the TRAINING CENTRE, LEVEL 18, MENARA EXXONMOBIL, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR on Thursday, May 26, 2005 at 10:30 a.m. for the purpose of transacting the following business:
1. To receive and adopt the Company's Audited Accounts for the year ended December 31, 2004 and the Directors' and Auditors' Reports thereon.
2. To approve the declaration of a final dividend of 12 sen less Malaysian income tax at 28% per ordinary stock unit of 50 sen each for the year ended December 31, 2004.
3. To re-elect the following Directors retiring in accordance with Article 104 and Article 105 of the Company's Articles of Association:a) Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salimb) Y. Bhg. Tan Sri Abdul Halim Ali
4. To re-elect Encik Zain C. Willoughby, a Director retiring in accordance with Article 109 of the Company's Articles of Association.
5. To approve the payment of Directors’ fees for the Independent Non-Executive Directors.
6. To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company and to authorise the Directors to fix their remuneration.
7. To transact any other ordinary business of the Company.
NOTICE OF BOOK CLOSURE
NOTICE IS HEREBY GIVEN THAT stockholders who are registered in the Register of Members and Record of Depositors as at the close of business on June 1, 2005, shall be entitled to the final dividend which, if approved, will be paid on June 22, 2005.
A depositor shall qualify for entitlement only in respect of:
a) Securities transferred into the Depositor's Securities Account before 4:00 p.m. on June 1, 2005 in respect of transfers;
b) Securities deposited into the Depositor's Securities Account before 12:30 p.m. on May 30, 2005 in respect of securities which are exempted from mandatory deposit; and,
c) Securities bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of the Bursa Malaysia Securities Berhad.
By Order of the Board Rajabee Mohd Yusoff MAICSA 0743587 Secretary
Kuala LumpurApril 26, 2005
Note:A member of the Company entitled to attend and vote at the general meeting is entitled to appoint a proxy to attend and vote instead of the member. A proxy need not be a member of the Company and the provision of Section 149 (1) (b) of the Companies Act, 1965, shall not apply to the Company. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one proxy in respect of each securities account it holds with ordinary stock units of the Company, standing to the credit of the said securities account. The instrument appointing a proxy must be deposited at the registered office of the Company at EMB Company Secretary's Office, Level 29, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur, not less than 48 hours before the time set for the meeting.
Registration counters (located on Ground Floor of Menara ExxonMobil) will be opened from 9:00 a.m. to 10:20 a.m.
Refreshments will be served before the meeting at the Eatery on Level 6, Menara ExxonMobil, from 9:00 a.m. to 10:20 a.m.
Notice of Annual General MeetingNotice of Annual General Meeting
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STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING
1. Directors standing for re-election
· Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim - retires by rotation and eligible for re-election pursuant to Article 104 and Article 105 of the Company's Articles of Association.
· Y. Bhg. Tan Sri Abdul Halim Ali - retires by rotation and eligible for re-election pursuant to Article 104 and Article 105 of the Company's Articles of Association.
· Encik Zain C. Willoughby - appointed since the last Annual General Meeting and eligible for
re-election pursuant to Article 109 of the Company’s Articles of Association.
2. Details of attendance of the Directors at Board Meetings
Four (4) Board Meetings were held during the financial year ended December 31, 2004. The details ofattendance of the Directors are set out on page 15 of this Annual Report.
3. Place, date and time of the Annual General Meeting
The Forty-sixth Annual General Meeting will be held at the Training Centre, Level 18, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur, on Thursday, May 26, 2005 at 10:30 a.m.
4. Details of Directors standing for re-election
(i) Profiles
Profiles of Directors standing for re-election are set out on pages 12 and 13 of this Annual Report.
(ii) Statement of shareholdings
None of the Directors standing for re-election held shares in the Company.
(iii) Family relationship
None of the Directors standing for re-election have any family relationship with any Director and/or major shareholder of the Company.
(iv) Conflict of interest
None of the Directors standing for re-election have any conflict of interest with the Company.
(v) Conviction for offences (excluding traffic offences)
None of the Directors standing for re-election have been convicted for offences within the past 10 years.
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ESSO MALAYSIA BERHAD
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ADALAH DENGAN INI DIBERITAHU bahawa Mesyuarat Agung Tahunan yang Keempat Puluh Enam bagi Syarikat ini akan diadakan di PUSAT LATIHAN, ARAS 18, MENARA EXXONMOBIL, KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR pada hari Khamis, 26 Mei, 2005 jam 10:30 pagi dengan tujuan mengendalikan urusan-urusan berikut:
1. Menerima dan meluluskan Akaun-akaun Syarikat yang telah diaudit bagi tahun berakhir 31 Disember, 2004 dan juga Laporan Pengarah serta Laporan Juruaudit mengenainya.
2. Meluluskan pengisytiharan dividen akhir sebanyak 12 sen tertakluk kepada cukai pendapatanMalaysia pada kadar 28% untuk setiap unit stok biasa yang bernilai 50 sen seunit bagi tahun berakhir 31 Disember, 2004.
3. Memilih semula Pengarah-pengarah berikut, yang bersara mengikut Artikel 104 dan Artikel 105
Tataurusan Pertubuhan Syarikat:
a) Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salimb) Y. Bhg. Tan Sri Abdul Halim Ali
4. Memilih semula Encik Zain C. Willoughby, Pengarah yang bersara mengikut Artikel 109 Tataurusan Pertubuhan Syarikat.
5. Meluluskan ganjaran Pengarah-pengarah Bebas Bukan Eksekutif.
6. Melantik semula Tetuan PricewaterhouseCoopers sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan imbuhan mereka.
7. Menguruskan lain-lain urusan biasa Syarikat.
NOTIS PENUTUPAN BUKU-BUKU
DENGAN INI DIBERITAHU bahawa pemegang-pemegang saham yang berdaftar di buku daftar ahli Syarikat dan Rekod Pendeposit pada akhir perniagaan, 1 Jun, 2005, adalah layak untuk menerima dividenakhir dimana, jika diluluskan, akan dibayar pada 22 Jun, 2005.
Seseorang pendeposit hanya layak menerima dividen berhubung dengan:
a) Sekuriti-sekuriti yang dipindahkan kepada Akaun Sekuriti Pendeposit sebelum 4:00 petang pada1 Jun, 2005 bagi pemindahan biasa;
b) Sekuriti-sekuriti yang didepositkan di dalam Akaun Sekuriti Pendeposit sebelum 12:30 tengahari pada 30 Mei, 2005 bagi sekuriti-sekuriti yang dikecualikan dari deposit mandatori; dan,
c) Sekuriti-sekuriti yang dibeli di Bursa Malaysia Securities Berhad berserta hak kelayakan menurutPeraturan Bursa Malaysia Securities Berhad.
Dengan Perintah Lembaga PengarahRajabee Mohd YusoffMAICSA 0743587Setiausaha
Kuala LumpurApril 26, 2005
Nota:Seorang ahli Syarikat yang berhak hadir dan mengundi di mesyuarat agung adalah berhak melantik seorang proksi untuk hadir bagi pihak ahli. Proksi itu tidak semestinya seorang ahli Syarikat dan peruntukan Seksyen 149 (1) (b) Akta Syarikat 1965, tidak berkenaan ke atas Syarikat. Seorang ahli yang juga nomini yang sah seperti yang didefinisikan di bawah Securities Industry (Central Depositories) Act 1991, boleh melantik sekurang-kurangnya seorang proksi untuk setiap akaun sekuriti yang dipegang dengan unit stok biasa Syarikat, yang dikreditkan di dalam akaun sekuriti tersebut. Surat perlantikan proksi hendaklah diserahkan di pejabat berdaftar Syarikat iaitu di Pejabat Setiausaha Syarikat EMB, Aras 29, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur, tidak lewat dari 48 jam sebelum waktu mesyuarat yang telah ditetapkan.
Kaunter pendaftaran (bertempat di Aras Bawah, Menara ExxonMobil) akan dibuka bermula pada jam 9:00 pagi hingga jam 10:20 pagi.
Jamuan akan disediakan sebelum Mesyuarat bertempat di Dewan Makan, Aras 6, Menara ExxonMobil, bermula pada jam 9:00 pagi hingga jam 10:20 pagi.
Notis Mesyuarat Agung TahunanNotis Mesyuarat Agung Tahunan
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PENYATA YANG DILAMPIRKAN BERSAMA NOTIS MESYUARAT AGUNG TAHUNAN
1. Pengarah-pengarah yang bersedia untuk dipilih semula
· Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim - bersara mengikut giliran dan layak untuk dipilih semula menurut Artikel 104 dan Artikel 105 Tataurusan Pertubuhan Syarikat.
· Y. Bhg. Tan Sri Abdul Halim Ali - bersara mengikut giliran dan layak untuk dipilih semula menurut Artikel 104 dan Artikel 105 Tataurusan Pertubuhan Syarikat.
· Encik Zain C. Willoughby - dilantik semenjak Mesyuarat Agung Tahunan yang lepas dan layak untuk dipilih semula menurut Artikel 109 Tataurusan Pertubuhan Syarikat.
2. Butir- butir kehadiran Para Pengarah di Mesyuarat Lembaga Pengarah
Empat (4) Mesyuarat Lembaga Pengarah telah diadakan sepanjang tahun kewangan yang berakhir pada31 Disember, 2004. Butir-butir kehadiran Ahli Lembaga Pengarah adalah seperti yang tercatat dimukasurat 15 di dalam Laporan Tahunan ini.
3. Tempat, tarikh dan masa bagi Mesyuarat Agung Tahunan
Mesyuarat Agung Tahunan yang Keempat Puluh Enam akan diadakan di Pusat Latihan, Aras 18, M en ar a ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur, pada hari Khamis, 26 Mei, 2005 jam 10:30 pagi.
4. Butir-butir lanjut mengenai Pengarah-pengarah yang bersedia untuk dipilih semula
(i) Profil
Butir-butir lanjut mengenai Pengarah-pengarah yang bersedia untuk dipilih semula tercatat di mukasurat 12 dan 13 di dalam Laporan Tahunan ini .
(ii) Penyata pemegangan saham
Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai sebarang saham di dalam Syarikat.
(iii) Hubungan kekeluargaan
Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai hubungan kekeluargaan sesama Pengarah-pengarah yang lain atau pemegang saham terbesar Syarikat.
(iii) Percanggahan kepentingan
Pengarah-pengarah yang bersedia untuk dipilih semula tidak mempunyai percanggahan kepentingan di dalam Syarikat.
(iv) Kesalahan-kesalahan yang disabitkan (selain daripada kesalahan lalulintas)
Pengarah-pengarah yang bersedia untuk dipilih semula tidak disabitkan dengan kesalahan-kesalahan dalam tempoh 10 tahun yang lepas.
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ESSO MALAYSIA BERHAD
ESSO MALAYSIA BERHAD( Company No. 3927-V )
( Incorporated in Malaysia )
P R O X Y F O R M
( Before completing the form please see notes overleaf )
I / We _______________________________________________ NRIC / Company No.____________________( Full Name in Block Capitals )
of _____________________________________________________________________________________________( Address )
being a member / members of the above-named Company hereby appoint
______________________________________________________ NRIC No._______________________________( Full Name )
of _____________________________________________________________________________or whom failing( Address )
______________________________________________________ NRIC No. _______________________________( Full Name )
of _______________________________________________________________________________________as my ( Address )
proxy to attend and vote for me / us on my / our behalf at the Annual General Meeting of the Company to be held on Thursday, May 26, 2005 at 10:30 a.m. and at any adjournment thereof.
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My instruction to my/our proxy is to vote as follows:
Resolutions For Against
1. Receive and adopt Company’s Audited Accounts
2. Approve the declaration of dividend
3. Re-elect the following directors:-a) Y. Bhg. Tan Sri Dato’ Dr. Syed Jalaludin Syed Salim
b) Y. Bhg. Tan Sri Abdul Halim Ali
4. Re-elect Encik Zain C. Willoughby
5. Approve the payment of Directors' fees for IndependentNon-Executive Directors
6. Re-appoint PricewaterhouseCoopers as Auditors and authorise the Directors to fix their remuneration
7. Transact any other business
Signed this ________________day of May 2005.
__________________________Signature of Member (s)
Notes:
1. A member of the Company entitled to attend and vote at the general meeting is entitled to appoint a proxy to attend and vote instead of the member. A proxy need not be a member of the Company and the provision of Section 149 (1) (b) of the Companies Act, 1965, shall not apply to the Company. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one proxy in respect of each securities account it holds with ordinary stock units of the Company, standing to the credit of the said securities account. The instrument appointing a proxy must be deposited at the registered office of the Company at EMB Company Secretary's Office, Level 29, Menara ExxonMobil, Kuala Lumpur City Centre, 50088 Kuala Lumpur not less than 48 hours before the time set for the meeting.
2. In the case of a corporation, the instrument appointing a proxy or proxies must be under seal or under the hand of an officer or attorney duly authorised.
3. Unless otherwise instructed, the proxy may vote as he thinks fit.
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ESSO MALAYSIA BERHAD (Company No.3927-V)
(Incorporated in Malaysia) An ExxonMobil Subsidiary in Malaysia
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