date : 4 May 2019

A Record Breaking Sale of 21 Thousand Billion IRR and 170 Million Liters of IRANOL engine oil

The managing director of IRANOL Oil Co. stated: the company achieved a record-breaking sale of 170 million liters of various types of engine oil in 2018 valued at approximately 21 thousand billion IRR

Mr. Eisa Eshaghi, during the 24^th international exhibition of oil, gas, refining and petrochemicals and by emphasizing on the good reception of the visitors of IRANOL booth, added: The past year was the greatest year for IRANOL and the sales of various types of IRANOL engine oils surpassed from 150 million liters in 2017 to approximately 170 million liters and our sales increased from approximately 13 thousand billion IRR to approximately 21 thousand billion IRR and our share of the market reached to more than 30% from 27%.

Answering a question about his assessment for 2018 for IRANOL, he said: We are moving forward according to the 8-year strategy prepared for IRANOL and fortunately following 6 years of my presence in IRANOL we were able to break our records for production, sales, exportation, exportation of engine oil, market share and profit and we continued in 2018 according to this strategy and increased our engine oil volume sale at 30% and our monetary sale at 65% compared to 2017.

Answering a question about the decrease of exportation by IRANOL in 2018, he said: According to SHASTA directive we faced a significant decrease of our exportation in the first 6 months even with the increase of foreign currency rates.

He explained: In consideration of the decrease of our exportations in the first few months of the year, we tried to compensate for our profit by increasing our domestic sales and fortunately during the first 9 months of the past year we experienced a 65% growth in our profits compared to 2017.

In regards to the profit forecast for IRANOL in 2018 he said: It has not been finalized yet, but the ratification of the Cabinet passed in March and accordingly the food currency rates was changed from the 4200 IRR rate to NIMA rates since November (approximately 5 months ago) and the sales of the final product did not experience an increase of prices and we paid a difference of more than 3000 billion IRR for having two refineries and this affected our profits greatly and we had the highest domestic sales during the year which was nominated for supporting domestic production and we felt the strongest impact.

Answering a question about his forecast for 2019, he added: The lubricant industry experienced only 9% of price increases during the past 5 years since 2014 even with the increase of expenses, wages and prices of additives and we hope that with the authorization of the Ministry of Industry we can receive a permission to increase the prices properly to prevent the engine oil market from facing any difficulties.

IRANOL Oil Co.'s managing director answered a question about the most important asset of IRANOL during the past 6 years of his management and the company's significant progress in most indexes and said: Right now one of the most important assets and capitals of IRANOL is its market share of more than 30% for which we are hoping that according to our strategy and by 2021 we can achieve a total sale of IRANOL engine oils of more than 200 million liters.

Answering a question about the decrease of sale of base oil he added: We decreased the exportation of base oil from 140 thousand tons in 2015 to 30 thousand tons in the last year and this approves the increase of the sale of engine oils and market share.

The managing director of IRANOL Oil Co. listed some the most importation actions during the past few years as: 10-step progress by IRANOL amongst the top 100 companies from rank 97 to 87 and selling various types of engine oils from 110 million litters in 2015 to 170 million liters in 2018, increasing the market share of IRANOL from 19% in 2014 to more than 30% in 2018 and utilizing 5 important projects.