Sepahan Oil Company has unveiled its latest product titled “Maglobe” Motor Oil.
Mohammad Hossein Razzaghi, Managing Director of Sepahan Oil Company, announced the news at a press conference held on the company’s website on Tuesday and announced that Sepahan Oil Company had succeeded in securing the approval of the prestigious German company ” Benz “producing its world class product with”Maglobe” Mark.
“Currently, we are in direct talks with three major automakers simultaneously to increase approvals for the company’s products,” he said, adding that the approval of the automakers is that in addition to product formulation, they also approve the production and packaging process.
In addition, the performance of the engine oil must be approved according to the specifications of the engine, he stressed.
Therefore, “Maglobe” motor oil exceeds global PPE standards and has marked a great achievement in the motor oil industry of the country.
Razzaghi added, “This product is intended for world class cars that we previously imported, but now our main focus is on addressing the lack of need for importing engine oil for high end and high end cars. which will also help the country to meet its demand in this regard.
In response to a question about the sales of the Sepahan Oil Company vessels, he said: “Of the eight tankers of this company, two remained, the maintenance of which was not profitable due to obsolescence and disrepair. the high age of these ships, and according to international law, these ships could only be used on a specific route to India. Therefore, we decided to sell these vessels, the last of which was sold recently. “
Regarding the company’s overdue claims with the Petroleum Ministry, he said those claims were initially $ 102 million, which rose to $ 110 million according to documents available from the company.
The matter is under investigation and the management team of Sepahan Oil Company have done their best to reflect some of these assertions in the financial statements prior to holding the Annual Ordinary General Meeting, he said, adding: “Considering the importance of further investigation, we were not successful, so the case is still open and we hope these claims will be received from the Petroleum Ministry. in the very near future.
Elsewhere in his remarks, the CEO of Sepahan Oil Company estimated the volume of sales growth of this company at 10%.
He also estimated the company’s sales growth in the first five months of the current Iranian calendar year (March 21 to August 21) at 5% and said that figure is the sales growth rate on highest among lubricant companies.
Currently, the company is facing a raw material supply problem, he said, adding that the refineries have switched to synthetic raw material, so they are not able to extract the Lube. Cut, which created serious problems for the company.
According to Iran Mercantile Exchange Company, the volume of LUBE CUT at refineries in Tehran and Isfahan decreased by 130,000 tonnes (nearly 30%), which is a significant figure, he added.
Turning to the main reasons for the decline in the production of raw materials, the CEO of the company said that the Isfahan refinery had undergone three major overhauls which resulted in a decrease in feed consumption, while the company received 30 000 tons of its feed from this refinery. Despite these obstacles created for the company, management decided to import feed from the Bandar Abbas Oil Refining Company.
Despite the decrease in receiving raw materials, the company has managed to witness an increase in both sales and production, Razzaghi said.
Stating that any disruption to the company’s production activity would also put the market in difficulty, he pointed to feed prices and said: Oil has had a fixed and declining trend, but according to the agreements concluded between the exporters, we have not allowed the price of Iranian export oil in the region to fall.
He added that the average price of feed has risen from 50 to 60 percent compared to last year.
Razzaghi expressed hope that the refineries in Abadan and Tabriz would produce heavy LUBE CUT, as the shortage of this product would affect the lubrication industry such as transportation.
He estimated the volume of LUBE CUT required in the country at two million tonnes per year, so that five refineries in the country have the capacity to produce LUBE CUT.
Sepahan Oil has the capacity to receive 15,500 tonnes of LUBE CUT per day, but due to a production shortage of this product, the company is currently receiving 13,100 tonnes, he continued.
The company has experienced a 3.3-fold increase in sales volume in the first five months of the current year compared to the same period last year, he said, adding: “Currently , we have branches in 12 provinces of the country. and nine more provinces will be added by the end of the year (until March 20, 2022).
He went on to say that motor oil sales centers were a missing link in the chain and added that the diesel fuel shortage was the problem the company had taken the necessary measures for in this regard.
With the coordination done in this regard, “We will supply all freight and passenger terminals, motor oil sales centers, etc. with this product, he stressed.
In the area of exports, the company recorded an export growth of 2% during this period, he said, adding, “If the company’s raw material was supplied, we would have more exports, but in any case, it is expected that the company will export. $ 300 million of its products in the current situation and effective measures have been taken to enter export currency into the country. “
Razzaghi estimated the volume of investment necessary for the implementation of the aforementioned projects at around 6,000 billion tomans.
The CEO of the company also highlighted six projects being implemented in the company and added: “Our latest project is the construction of 35,000 ton export terminal tanks which we hope will be put into operation. service by February 2022, and as a result, vessels belonging to the Sepahan Oil Company will be dispatched from Bandar Abbas. “
Increasing the company’s production capacity by 100,000 tonnes is another program that has been placed high on the agenda, he said, adding: “Of course we are also facing obstacles to complete the production capacity of 15,500 barrels of raw material and if this problem is resolved, another 2,000 tonnes will be added daily to the company’s production.
Ultimately Mohammad Hossein Razzaghi, Managing Director of Sepahan Oil Company, said, “Planning is underway to export bulk motor oil from the Chabahar export terminal to increase the company’s share. in the lucrative markets of the countries of the region. “