Merger and Foundation
Officially founded on March 6, 2006, Shell & Turcas Petrol
(STAŞ) obtained all regulatory approvals by June 12, 2006,
and commenced operations on July 1 of that year.
The target of STAŞ, which has already become a leader in
the Turkish fuel distribution and lubricants market, is to be
the undisputed leader in the sector by way of being the most
admired company and the most preferred brand by consumers.
Significant successes gained in the first half of 2006 and the
following three years proves that the first part of this target
has been achieved. As of the end of 2009, total number of
STAŞ's Shell branded fuel stations has reached 1211.
This alliance has an important role in the growth, development
and competitiveness of the Turkish fuel sector. Having looked
at these advantages as a whole during the economic
development and growth process of our country, STAŞ works
towards the aim of fulfilling an important mission. This mission
is to produce and work for sustainable growth, while continuing
to implement work, health and safety regulations meticulously,
and establishing the "One Company, One Team Spirit" slogan
in Turkey; one of the world's most dynamic and exciting
markets. This alliance was formed as a result of two targets
of Shell; further growth in Turkey and carrying STAŞ to a more
dominant position in the market with the help of the synergy
created by the merger.
At present, the largest subsidiary of Turcas is STAŞ, with a
shareholding of 30%. STAŞ is one of the leading companies
in the Turkish petroleum sector with 1211 fuel stations
operating under the Shell brand, tens of dealers without
stations, lubricant oil production facilities, retail and commercial
sales.
In the Turkish fuel market, STAŞ is the market leader in
Gasoline and Low Sulphur Diesel (Eurodiesel) sales and
Lubricant Oil sales, while holding the second position in the
High Sulphur Diesel sales in 2009.
Turkey's Most Admired Fuel Company
As in 2008, STAŞ was chosen once again as "The Most Admired
Company in the Fuel Distribution and Lubricants Sector" in
the "Turkey's Most Admired Companies" Survey conducted
by the prominent economy magazine Capital in 2009.
Furthermore, STAŞ was picked as the "Most Well-known
Brand in its Sector" by Nielsen Turkey, "Most Influential
Company of its Category" by Dünya Newspaper, and "Third
Largest Private Company" by Fortune magazine.
Lubricants
Fuel stations are crucial for lubricant oil change. Lubricants
and fuel distribution are related business activities.
Out of the lubricant oil sales, which make up 10% of Shell's
total sales, 90% of it is produced in the lubricant and grease
oil production plant owned by Shell & Turcas in Derince. STAŞ
Derince plant currently exports more than 10,000 tons of oil
products to approximately 40 countries.
Products from the Derince plant and imported products are
marketed domestically. Sales are made first to nearby markets,
and then to other Shell countries in the network. As a major
achievement, STAŞ continued to be the market leader in
lubricants with a sales volume of 94,000 tons by the end of
2009.
The construction sector is the dynamo of the lubricants market.
When the construction sector is fast, work machines are
largely in demand. It is a market with especially high motor
oil consumption and the performance of hydraulic oils can
be assessed in a short time period.
Engine Oils
The main tasks of engine oils are lubrication, protection,
cleaning, and cooling. Clean engines always work better and
longer. Shell Helix is designed to provide these services to
its users comprehensively. The situation is a little different
when it comes to heavy-duty service vehicles. Much higher
temperatures and heavier conditions put more pressure on
engine oil. The Shell Rimula family with a complete product
portfolio is designed for heavy-duty service vehicles.
New Products
In line market developments and rising fuel costs, STAŞ
offered two new products to its customers in 2009. VPower
+GTL was introduced in June to improve the performance of
Diesel vehicles. In July, FuelSave 95 octane was brought to
the market with a "More in Every Drop" slogan for more
savings for the customer.
Antalya Plant
The Antalya plant has 33,000 m3 of storage capacity. With
the commencement of the facility, products that will be
available for storage and sales are as follows:
• Diesel Extra
• V-Power Diesel
• Fuelsave Unleaded 95
• V-Power Diesel + GTL
• Jet A-1
Improvements undertaken after careful inspection of the
facility are as follows:
• Welding renewals in product pipelines,
• Restorations of the tank floor and equipment,
• Tank paint renewal,
• Addition of functional stairs to the upper-filling islands,
• Rail heightening modifications,
• Improvements to fire-alarm systems,
• Mounting safety hanger systems to the filling islands.
• Operational improvements in order to bring the plant to
a suitable state for STAŞ's use are as follows:
Renovation of the buoy system,
• Pipe modifications from refinery to tankers,
• Modifications around tanker discharge areas for supplies
from land tanker,
• Addition of a new under-filling island for Jet A-1,
• Construction of an automatic aid system.
Samsun SADAŞ JV Terminal
Samsun SADAŞ JV Terminal was built by Total Oil Türkiye A.Ş.
in 1994. Following the joint venture created by Shell & Turcas
Petrol AŞ. (STAŞ) and Total Oil Türkiye A.Ş. (Total), capacity
of the terminal has been doubled to 38,360m3 with the
addition of 8 new tanks. The terminal started operations on
January 1, 2010 with its improved storage capacity.
Hence, STAŞ will be able to provide its clientele in the Black
Sea region with its own product range coming from a single
terminal. Shell's new products, which were not previously
offered to the region, will thus be available.
The terminal plans to supply products from both local and
regional refineries by way of sea. The additions to the plant
are compliant with Shell's and local environmental standards.
The facility will be managed by a joint Board and Management
team with Total, also continue to service the existing clients
before the merger in the region.
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| Company Profile |
Paid-in Capital
528.117.660 TL
Total Assets
2.122.737.000 TL
Shareholders' Equity
1.414.455.000 TL
Ownership Profile
%70 Shell Turkey
%30 Turcas Petrol A.Ş.
Net Sales
7.860.954.000 TL
Number of Employees
849
Board of Directors
Paul Stone - Chairman
Erdal Aksoy -Member
Yılmaz Tecmen - Member
Ahmet Erdem - Member
Douglas Boyle - Member
Russel O'Brien - Member
Rob Miesen - Member
George Spanoudis - CEO
Michiel Brouwer - CFO
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Commercial Sales
In order to better serve the customer and bring their satisfaction
to a higher level even after the distribution of fuel, commercial
sales department is conducting activities such as card sales
in Europe, Vehicle Recognition System, bulk fuel and home
base (supplying big companies' storage facilities).
Market and Operational Risks
The adverse effects of the global economic crisis that began
in 2008 resulted in a fall in demand and finance & credit
problems thruoghout 2009. Total consumption of vehicles
(gasoline, diesel and LPG autogas) dropped 2.3% to 18 million
tons in 2009.
Price changes resulting from high volatility in demand/supply
conditions represent a risk for oil companies and for companies
that have a large share of oil in their cost structures. Refineries
and oil retailers recorded USD 2 billion of inventory losses
due to mandatory stocking in 2008. There are also difficulties
in reflecting the daily changes in oil prices to retail prices.
Although small, the discrepancy between the retail prices
based on 7-10 day averages versus the daily changes on
wholesale prices is a risk. For example, the wholesale price
of diesel that reached USD 100 in March, 2009 could only be
reflected at USD 55 to the customer.
Besides demand and price risks, there are also operational
risks embedded in the sector. All preventive and safety
measures should be implemented regarding the transportation
and storage of flammable materials, in order to prevent
potential damages to the health of the environment and
population.
In March 2009, a decree has been issued by the competition
authority, limiting the contract terms with existing retailers
to 5 years from 15 years. This is expected to be a major issue
for the sector in 2010.
Another important development was the price-cap
implementation of the Energy Market Regulatory Authority
on retail prices of diesel and gas for two months. The
implementation was lifted after two months, however,
returning to the previous free pricing mechanism.
Changes in Legislation
Competition Authority has issued a decree on March 11,
2009, effectively limiting the contract terms of gas retail
franchises to 5 years, reasoning that the current terms of the
existing lease contracts put pressure on franchises to extend
the terms of the contract against their will and create unfair
protection for the distributors. The biggest impact of this
decision will be observed during the conversion of the current
contracts to the new terms, and compensation of earlier
investments done on the premises of franchises. The financial
obligations between the distributor and the retailer have to
be restructured according to the current law, in most cases
creating debt for franchises should they want to get out of
their current obligations. It is estimated that 7,000 contracts
will be affected by this legislation and there will be a
tremendous increase in court cases in order to resolve the
financial issues. For this reason, the compliance efforts of the
sector to the Authority's recent decree are expected to be
a major issue in 2010.
Energy Market Regulatory Authority started to implement a
price ceiling on gasoline and diesel prices of retailers for two
months between June 27 and August 27, 2009 with a decree
issued on June 25, 2009. The price cap was calculated on
pre-tax international per barrel dollar prices without taking
into account the domestic refinery prices and the distribution
costs. Although the implementation lasted for only two
months, the psychological damage to the free market ideology
of the sector was more disturbing.
On July 15 and December 31, 2009, Special Consumption Tax
on various oil products has been increased. As a result, legal
consumption of such products has been observed to decline
and consumption of black market products to rise. This is also
the reason for the decline in rural diesel consumption, which
has been increasing for the last 5 years. It is estimated that
the illegal mixing of waste oil to gas reached a level of more
than 500,000 tons and incurred a tax loss of more than TL
600 million.
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