annual report 2009 - samir · 2011-04-27 · sheikh mohamed hussein al-amoudi board of directors’...

2009Annual Report

General Manager Speech .................................... 5About SAMIR ...................................................... 6 Board of Directors ............................................... 8Executive Management Committee ......................... 9SAMIR Organization .......................................... 10SAMIR Group ................................................... 11

I. World and National Economy .........................13

II. Supply, Trading and Marketing .......................23

III. Refinery Operations ......................................29

IV. Administration and Finance ...........................35 1. Human Resources ............................. 36 2. Finance ........................................... 38 3. Information Technology ....................... 40

V. Modernisation Program .................................43

VI. Development Perspectives .............................53

VII. Sustainable Development .............................59 1. Health & Safety ............................... 60 2. Global Management System ............... 61 3. Environment .................................... 62 4. Societal Responsibility ....................... 63

VIII. SAMIR Subsidiaries ...................................67

IX. Accounts Analysis .......................................73

X. Financial Statements .....................................77

XI. Resolutions of Ordinary General Meeting .......85

List of Contents

Sheikh Mohamed Hussein AL-AMOUDIBoard of Directors’ Chairman

4 • Annual Report 2009

SAMIR ended up the year 2009 with a positive result despite the difficult economic environment. The company achieved good performances and was able to consolidate its results compared to the previous year.

The beginning of the 50ppm Gasoil production and the mechanical reception of all upgrade project units are considered as the most marking events of the year, as the national refining industry made its first entry into a new era characterized by the use of state of art technologies and the production of clean fuels, environmentally friendly and conform to the European specifications.

The company continued its efforts as far as the protection of the environment, quality certification and security performances’ improvement are concerned.

SAMIR also carried on its investment program. Special focus was on the increase of the refining capacity, the increase of the bitumen production and the development of the transport and storage logistics. These projects show a very attractive return on investment.

At the financial level, the company started negotiations with financial institutions in order to restructure its debts and acquire the necessary funds to carry on its mission and further develop its refinery.

With the strart up of hydrocracking complex in the year 2010, SAMIR will be able to increase its refining margins and its productivity; and thus being able to meet the shareholders expectations.

Jamal Mohamed Ba-Amer General Manager

General Manager Speech

• 5 •

CORPORATE NAME : «Société Anonyme Marocaine de l’Industrie du Raffinage» «SAMIR»

CREATION DATE : 1959

COMPANY’S STATUS : Joint Stock Company (Casablanca Stock Exchange)

MAIN SHAREHOLDERS : Corral Morocco Holding (67.27%)

CAPITAL SHARE : 1.189.966.500 MAD

ACTIVITIES :

• Crude Oil Refining • Base Oils • Bitumen • Supply & Trading • Logistics & Distribution

PRODUCTS :

• Propane • Butane • Naphtha • Unleaded Gasoline • Jet • Gasoil • Fuel Oil • Base Oils • Bitumen • Waxes • Sulphur

REFINING CAPACITY : 6.25 Million Tons/Y under extension to reach 8.2 Million T/Y

CONFIGURATION : Complex refinery with Lube Complex

NELSON COMPLEXITY INDEX : 12.8

INSTALLED POWER : 40 MW

STORAGE CAPACITY : 2 million cubic meters


About SAMIR

• 7 •


CHAIRMAN

Sheikh Mohamed Hussein AL-AMOUDI

BOARD MEMBERS

MEMBERS

Jamal Mohamed BA-AMER, Director GeneralRachid BENNOUNA, DGM Administration and FinancesUlf JANSON, DGM Supply, Sales and Distribution

Board of Directors

Senior Management Committee

GHAZI Mahmud HABIB

Bassam ABURDENE

Jamal Mohamed BA-AMER

Mohammed Hassan BENSALAH

Jason MILAZZO George SALEM John P. OSWALD Lars NELSON

• 9 •

REPORTING TO THE GENERAL MANAGER

Abdulkader Bahajri Upgrade Project & Major Projects Youssef Belkhadir Purchasing &ContractingAhmed Chakib Engineering & Upgrade IntegrationAbdelmounim El Yaalaoui Audit & Management SystemsAhmed Harnouch Strategy & Coordination Abdelkrim Lamssafri Health & SafetySidi Mohammed Melliani Infrastructure & General Affairs

DGM ADMINISTRATION AND FINANCE – RACHID BENNOUNA

Mohamed Ghayate Human Resources & Public RelationsYounes Ouarzazi Finance Project Manager

DGM SUPPLY, SALES AND DISTRIBUTION – ULF JANSON

Abdurahman Al Jusha’ah Planning & Distribution Abdellah Oudjji Import & ExportYoussef Ouhilal Sales & Marketing

DGM REFINING

Maria Charaf Quality & Sustainable DevelopmentMohamed Gajjaoui Maintenance Abdellatif M’Haïdra Production Hmida M’Hamdi Technical Services Abdelhafid Kodade Sidi Kacem Site Ngihma Tahiri Upgrade Commissioning & Start up

Management Organization


Organizational Chart

GENERAL MANAGER

Strategy & Coordination and BOD Secretary

Upgrade Project & Major Projects

Engineering & Upgrade Integration

Safety & Health

Purchasing & Contracting

DGM Refining

Production

Maintenance

Technical Services

SK Refinery

DGM Sales, Supply &

Distribution

Planning & Distribution

Import & Export

Marketing & Sales

DGM Administration &

Finance

Accounting & Finance

Human Resources& Public Relations

Quality and Sustain. Dev

Upgrade Commissioning

Infrastructure & General Affairs

Audit and Management System

• 11 •

Organizational Chart SAMIR Group

Refining business

Mohammedia Refinery 100%

Sidi Kacem Refinery 100%

LPG business

SALAM GAZ 50%

SOMAS 38%

Logistics and distribution business

TSPP 100%

• 13 •

World and National Economy


1. World Economy

1.1 General Highlights The world economy is witnessing a significant decline primary due to the US financial crisis which is considered to be as the most severe one since the great depression of the year 1929.

The bursting of the United States housing bubble is said to be the direct cause of the crisis after which several financial institutions were bankrupted despite the US government attempts to rescue them through a massive liquidity injections. Stock markets and commodity prices have collapsed and become highly volatile.

The crisis rapidly developed and spread into a global economic shock. Thus, several European banks were bankrupted. Many stock exchange markets witnessed a sharp decline, and the market value of equities and commodities became highly volatile.

World Output

The world economic growth started recovering during the second half of 2009. This positive trend is attributed to the strong performance of Asian economies and steadiness or slight revival of other economies.

• 15 •

International Stock Markets

In spite of the high volatility of stock markets during the first quarter of the year 2009 due to the uncertainties regarding the world economy fate, the main world stock markets showed some recovery compared to 2008. These performances brought some hopes for an eventual revival since the second quarter as most economies recovered somehow from the recession.

One of the main stimuli of these performances is the positive development in the US financial system which was supported by the US treasury’s policy through “Public-Private Partnership Investment Program” bringing a positive signal to the equity market.

Globally, the main world stock markets closed the year 2009 with the following performances: • Dow Jones Index was up by 19%.• Nikkei 225 index rose by 19% after a significant decline in October and November, • CAC40 index jumped by 22.3% compared to the previous year

The table bellow presents an overview of the World Economic Outlook :

2008 2009 2010 Projections

World Output 3.0 -0.8 3.9Advanced Economies 0.5 -3.2 2.1United States 0.4 -2.5 2.7Euro area 0.6 -3.9 1Germany 1.2 -4.8 1.5France 0.3 -2.3 1.4Italy -1.0 -4.8 1Spain 0.9 -3.6 -0.6Japan -1.2 -5.3 1.7United Kingdom 0.5 -4.8 1.3Canada 0.4 -2.6 2.6Other Advanced Economies 1.7 -1.3 3.3Newly industrialized Asian Economies 1.7 -1.2 4.8Emerging and developing economies 6.1 2.1 6Commonwealth of independent states 5.5 -7.5 3.8Russia 5.6 -9 3.6Developing Asia 7.6 6.5 8.4China 9.6 8.7 10India 7.3 5.6 7.7Middle east 5.3 -2.2 4.5

Source FMI

Exchange rates

During the year 2009, the US dollar lost 1.45% against the Moroccan DH, while the Euro increased by 0.34% on a cumulative basis against the MAD.Concerning the Euro/USD parity, a decrease was noticed from the beginning of the year to end of February

with a high of 1.3977 reached on January the 1st. The Euro recovered all its losses to reach its highest level on November 11th of 1.5015. Nevertheless, a reversed trend was seen on December when the dollar rallied by 4.22%.

USD and EUR evolution against MAD Jan. 1st to Dec. 31st 2009

Source FMI


2008 Close Low High 2009 Close

Dow Jones 8 776 6 470 -26.3% 10 580 20.6% 10 429 18.8%S&P 500 900 667 -25.9% 1 130 25.6% 1 115 23.9%EURO STOXX 50 2 451 1 765 -28.0% 3 002 22.4% 2 966 21.0%CAC 40 3 218 2 465 -23.4% 3 977 23.6% 3 936 22.3%NIKKEI 8 860 7 021 -20.8% 10 767 21.5% 10 546 19.0%

Source FMI

Oil Price

Crude Oil Price Trend – Dated Brent Basis US$/bbl

1.2 Global Oil Market Overview

Source : International Energy Agency

• 17 •

In 2009, oil industry was heavily impacted by the world economic crisis. In spite of the measures taken by the OPEC organization to overcome this situation (cutting a large quantity of its production), oil market went into a deep recession due to the market supply tightness, a collapsing demand and high oil inventories.

Globally, the Brent dtd price stood at an average of 61.7$/bbl in 2009 compared to 97$/bbl in 2008, with a pick of 78.86 $/bbl recorded on November.

Refining Margin

In 2009, hydroskimming margins improved compared to last year, while the complex margins decreased to

-3.5$/bbl in Northwest Europe and -3.9$/bbl in Mediterranean compared to the previous year.

For the hydroskimming margins, a high improvement was seen in the beginning of the year before dipping in March. But margins levels were higher than last year in all European market regions (Northwest Europe and Mediterranean). The improvement was highly supported by higher fuel oil demand from regions outside Europe (US and Asia Pacific), reduced stocks as well as outages during maintenance periods.

As for complex margins, they were depressed by middle distillate market weakness. They moved sometimes to negative territory.


Since February 2009, the middle distillate market was under pressure as deepening economic recession reduced industrial demand and pushed stocks to record high levels.

The gasoil 10ppm crack spreads dropped under $10/bbl level from level higher than

$40/bbl last year, and stood around $9/bbl from June to September. The gain seen in October was offset in November and crack spreads stood around $10/bbl.

The average of premium to Heavy fuel oil dropped to $200/T from $490/T last year.


Brent NW Europe (2008-2009)(Complex Refinery)

Ural Mediterranean (2008-2009)(Complex Refinery)

Ural Mediterranean (2008-2009)(Hydroskimming Refinery)

Brent NW Europe (2008-2009)(Hydroskimming Refinery)

Mar

gin

$/B

BI

Mar

gin

$/B

BI

2008

2008

2008

2008

2009

2009

2009

2009

Mar

gin

$/B

BI

Mar

gin

$/B

BI

World Oil Balance

In 2009, the world oil demand continued its downward trend, decreasing by 1.66 mb/d. This result is due to the world economic crisis which impacted the OECD countries especially in the second quarter during which the demand contracted by 2.09 mb/d compared to the first quarter, thus causing an annual drop of 2.13mb/d compared to the year 2008.

The weak performance of the OECD countries is mainly attributable to the decrease of US and Europe demand by 4.5% and 3.97% respectively. The contraction offset

the non-OECD demand which increased by 0.48 mb/d thanks to china which had an average demand of 8.21 mb/d versus 7.83mb/d in 2008.

World supply also dropped by 1.14 mb/d, from 85.37 to 84.23mb/d. The main reason behind this contraction is the decrease of the non OECD supply by 1.13 mb/d compared to the previous year, particularly the OPEC supply (see OPEC supply section).

However, OECD supply remained steady compared to 2008 with total supply of 20.90 mb/d.

• 19 •

2008 2009 1st Q 2nd Q 3rd Q 4th Q Whole yearTotal World Demand 85.79 83.47 83.64 84.45 84.94 84.13OECD demand 47.58 46.42 44.33 45.07 45.96 45.45Non OECD Demand 38.20 37.05 39.31 39.37 3.98 38.68Total World Supply 85.37 83.51 83.69 84.65 85.06 84.23OECD supply 20.91 21.16 20.71 20.74 20.98 20.90Non OECD supply 64.46 62.36 62.98 63.91 64.09 63.33


OPEC Supply

In 2009, OPEC policy was the main oil market driving force. This policy, based on a reduced supply and a high compliance level, pushed crude prices from low levels to $80/bbl in early November. The Organisation had two ordinary and two extraordinary meetings, in order to review the oil market developments as all the

members were concerned about the deep impact of the economic downturn on world oil demand. In each meeting, the Organization repeated its commitment to keep the agreed 4.2 million bpd cut of December 2008 as the market was considered well over-supplied and a fragile demand recovery was associated with some downside risks.

2008 1st Q09 2nd Q09 3rd Q09 4th Q09 2009

Total Opec Supply 35.72 33.41 33.68 34.39 34.41 33.97% of world supply 41.84 40.01 40.25 40.62 40.45 40.33Crude oil 31.27 28.88 28.86 29.34 29.34 29.10Non Crude oil liquids 4.46 4.53 4.83 5.06 5.07 4.87



2. National Overview

Economy Growth

According to the HCP, the National Economic Growth is expected to reach 5.3% in 2009 compared to 5.6% recorded in 2008.

The non agriculture activities will grow at a pace of 2.3%, the lowest level since a decade, as opposed to 5% recorded in the period of 2000-2008. Yet, the added value of the agriculture sector is expected to grow by 25.2% compared to 16.6% in 2009 thanks to the good rainfall.

As for the GDP, it will reach 5.9% in volume as opposed to 10% recorded during the previous year due to the internal demand and the measures taken to master the soar of prices which will not exceed 2.5% as opposed to 5.9% of last year.

In fact, the domestic demand continues to play its role as the engine of growth in Morocco, supported by the positive outcome of the primary sector of employment with an unemployment rate below the threshold of 10 percent.

The exterior commerce growth is expected to reach -1.5% compared to 5.3%, thus recording a slight improvement compared to the previous year.

Moroccan Monetary Market Review

The latest available data of BAM showed that monetary conditions in 2009 were marked by the slowdown of monetary creation and the gradual deceleration in loans.

At the level of interest rates, the BAM Board of Directors decided to keep the rate of 3.25% and reduce the reserve requirement ratio to 11% as from July the 1st. As such the interbank average rate was fixed to 3.12% between July and August.

As for the lending rate, the second quarter showed a drop of 21% following 3 quarter of continuous rise.

The M3 continued its downward trend reaching 6.8% in the 3rd quarters due to the fall of time deposits from 18.1% to an average of 7.6% since the beginning of the year.

However, slight improvement was seen at the level of bank loans. In June and July 2009, the growth reached 2.6% and 1.5% representing the highest rates since the beginning of the year.

As of July 2009, the inflation dropped to 1.5% compared to 3.5 registered during the same period of the previous year. Yet, following the rise of some fresh product prices, namely meet and vegetables, the inflation rose again on august.

2.1 Highlights of the Moroccan Economy

• 21 •

Oil Products’ demand at the domestic level remained steady during the year 2009. The total sales reached 9 244 KT as of ended 2009 compared to 9 255 KT recorded in 2008.Yet, while the total quantities of petroleum products sold were constant, the market trend of some specific products has undergone some changes.An upward trend was seen at the level of LPG products, up by 3% thanks to the government support of social products. Similarly, the gasoline market has increased by 14% thanks to the development of small cars

business. Slight improvement of 2% was also seen for gasoil market.

Still, the most significant performance was recorded in the bitumen market which was up by 30% in line with the highway construction projects.However, the consumption of some other products dropped compared to the previous years, namely the fuel oil which decreased by 12% due to the low ONE lifting during the beginning of the year, and the jet product which dropped by 4%.

2. 2 Overview of National Oil Market

National Oil Demand Trend 000 Tons

2008 2009 Variation

LPG 1 865 1 925 3%Premium 452 517 14%Jet 483 463 -4%Gasoil 3 960 4 021 2%Fuel Oil 2 109 1 847 -12%Lubes 89 90 -Waxes 10 9 -10%Bitumen 287 372 30%Total 9 255 9 244 -

Source SAMIR

• 23 •

Supply Trading and Marketing


1. Supply and Trading

Crude Oil Supply

In 2009, SAMIR crude oil supply dropped by 14%, from 40.5 million barrels in 2008 to 35 million barrels in 2009. The decrease was mainly due to the low processing strategy adopted since the beginning of the year, correlated with the new specifications of gasoil and low refining margins.

The supplied basket was optimized according to the market economy and suppliers pricing policy. So, Kirkuk grade share increased from 9% to 29% (or from 3.8 mbbl to 10.1 mbbl) as the processing incentive was higher than other grades. As for term crude, Arabian light supply decreased by 2 mbbl compared to the previous year due to ARAMCO supply cut policy.

Supply Cost

The crude oil supply cost averaged 62.2$/bb in 2009 compared to 97.7$/bbl a year earlier, representing a difference of 35.5$/bbl or a variation of -36%.

The cost was minimized despite the high official selling prices set by ARAMCO for its crude deliveries. The low freight rates of this year allowed a supply cost saving of 1.4$/bbl for the Arabian Light crude, besides the low premium of the future market which allowed another reduction of 0.45$/bbl for the crude ICE Bwave.

Y 2008 Y 2009 Difference KT 000 bbl % KT 000 bbl %Arabian Light 2 628 19 278 48% 2 357 17 295 49% 1%Sirri Light 1 407 10 290 25% 144 1 055 3% -22%Ural 744 5 394 13% 906 6 562 19% 6%Kirkuk 521 3 832 9% 1 374 10 129 29% 20%Basrah Light 243 1 760 4% 0 0 0% -4%Total 5 543 40 554 100% 4 781 35 041 100%

Source SAMIR

2008 2009

3 000 -2 500 -2 000 -1 500 -1 000 -

500 -0 -

Ara

bian

Lig

ht

Sirr

i Lig

ht

Ura

l

Kirk

uk

Basr

ah L

ight

• 25 •

Products Import

During the year 2009, SAMIR imported a volume of 2.1 million tons compared to 1.4 million tons a year earlier. The increase was mainly due to the important step-change in Moroccan petroleum specifications in the beginning of this year.

During the transition period, SAMIR had played an active role in the market control process before the full implementation of the new specifications. By showing a high ability to accommodate the demand of the new

gasoil market with the import activities, 945 KT of this product was imported in the first half of this year only.

During the summer, SAMIR has successfully startup the hydrotreater fuelled by the Hydrogen plant. The gasoil deficit decreased consequently, and the import volume decreased in the second half to 555 KT.

Due to the low processing strategy and the reformer shutdown in the month of February, the Gasoline product was also imported to cover all the needs of the local market.

Supply Cost - $/bbl Y 2008 Y 2009 Difference

Arabian Light 98.1 60.8 -37.3Sirri Light 102.1 42.5 -59.6Ural (*) 103.3 70.1 -33.2Kirkuk 80.0 61.4 -18.6Basrah Light 89.2 n.s Average 97.7 62.2 -35.5

ns. not supplied / (*) including Gunvor Cargo.

000 tons Y 2008 Y 2009 Change

Gasoil 50ppm 38 1 499 -Gasoil 350 237 - -100%Gasoil 1%S 532 28 -95%Fuel Oil 524 493 -6%Gasoline 44 118 168%Jet 13 Bitumen 2 10 Butane 2 Total 1 390 2 150 55%

Source SAMIR

2008 2009

600 -500 -400 -300 -200 -100 -

0 -

GO

50p

pm

GO

535

0

GO

1%

S

Fuel

Oil

Gas

oilin

e Jet

Bitu

me

Buta

ne


Products Export

In 2009, the export activities went up by 14%, from 712KT to 814KT due to the soar of gasoil 1%S export. The export of this product started since April after its phase-out and the introduction of the gasoil 50ppm in the local market according to the new national specifications of oil products.

Yet, the exportation of some other products dropped significantly compared to the previous year, namely the Naphtha by 29% and the Lubes by 14% due to a low processing strategy

As for the fuel oil, the exported volume fell by 9% in line with the processing strategy.

000 tons Y2008 Y2009 Change

Gasoil 1%S 31 237 665%Naphtha 463 328 -29%Fuel Oil 65 59 -9%Distillates VGO 125 163 30%Lubes 28 24 -14%Bitumen 0 3 Total 712 814 14%

Source SAMIR

500 -

400 -

300 -

200 -

100 -

0 -

GO

1%

S

Nap

hta

Fuel

Oil

Dist

illat

es

Lube

s

Bitu

men

2008 2009

• 27 •

Marketing Strategy

In spite of the economic downturn and volatile and uncertain energy market, SAMIR was able to implement part of its marketing strategic plan which aims at meeting the following objectives:

• Increasing the sales’ turnover • Handling the competition of distributors • Increasing its market share

As such, the company concluded several new contracts with distributors.

Local Sales

SAMIR national market decreased by 5%, from 6020 KT to 5 697 KT ending December 2009. Excluding LPG and Fuel Oil products, the local market remained almost steady, with a share market of 77%.

The market output was due to the following:

• Decrease of LPG sales by 51%, due to the utilization of butane for internal consumption.

• Drop of the Gasoline and the jet A1 sales by 4% and 11%, respectively due to the importation of these products by some distributors.

• Increase of the gasoil sales by 2%, in line with the trend observed in the market. SAMIR share market is remaining unchanged.

• Decrease of the Fuel-oil demand by 12%, due to the recourse by ONE to Hydraulic sources.

• Increase of the bitumen sales by 11%, thanks to highways projects.

• The Lubes sales remained unchanged in spite of the importations carried out by some distributors.

00T 2008 2009 Change

LPG 172 84 -51%Gasoline 452 431 -4%Jet A1 284 254 -11%Gasoil 2 656 2 706 2%Fuel oil 2 109 1 847 -12%Lubes 69 69 -Wax 4 2 -50Bitumen 274 303 11%Total 6 020 5 697 -5%Total Excl Fuel oil/LPG 3 739 3 766 1%

Source SAMIR

2. Marketing and Sales

2008 2009

3 000 -

2 500 -

2 000 -

1 500 -

1 000 -

500 -

0 -

LPG

Gas

olin

e

Jet A

1

Gas

oil

Fuel

Oil

Lube

s

Wax

• 29 •

Refinery Operations

Crude Oil Processing

Following the low processing strategy adopted during 2009, the quantities of crude oil processed reached 4.7 million tons compared to 5.7 million tons in the previous year, which represents a variation of -17%.

SAMIR chose to adopt this strategy due to the decrease of the gasoil 1%S demand during the first quarter of the year followed by its phase-out on April and also because of the margins weakness during the remaining period of the year.

000 tons Y 2008 Y 2009 Change

Arabian Light 2 692 2 210 -18%Ural 430 1 287 199%Sirri Light 783 763 -3%Saldahna Blend 1 393 476 -66%Basrah Light 243 - -100%Kirkuk 154 - -100%National Crude 9 8 -11%Total 5 703 4 744 -17%

Source SAMIR3 000 -2 500 -2 000 -1 500 -1 000 -

500 -0 -

Ara

bian

Lig

ht

Ura

l

Sirr

i Lig

ht

Sald

ahna

Ble

nd

Basr

ah L

ight

Kirk

uk

Nat

iona

l Cru

de

2008 2009


Units’ Availability and Reliability

During the year 2009, the mechanical availabilities were in line with SAMIR objectives; the 12 rolling month’s mechanical availability of Mohammedia refinery reached 96.81 as of ended December 2009.

The year was also characterised by the shutdown of the distillation units Top I and II.

The company concluded several maintenance contracts in conformity with its internal policy of partnerships with subcontractors. These contracts can be summarized as follows:

• Electricity contracts • Instrumentation contracts• Static, piping and boiler contracts• Revolving machines contracts• Painting, thermo isolation and scaffolding contracts• Industrial cleaning contracts • Engineering Contracts

The performance of the Revenue Improvement and Cost Reduction Committees, is well up and running as planned.

As part of the energetic efficiency, several projects were achieved or underway of achievement in order to reduce energy consumption. These projects will help the refinery to reduce the energy bill by around 40 to 50 MDH per year in the next few years.The Solomon Energy Index is reduced from earlier 150 levels to 140 levels.

Thanks to a rigorous follow up of chemicals, solvents, and additives, quality give away and control of water consumption, significant cost savings are being achieved.

Expertise of Shell Global is being used to improve the operational performances and develop the staff technical skills.

2008 2009 YieldProduction 000 MT 000 MT %LPG 170 82 2Gasoline 434 284 6Jet 282 237 5Gasoil 1% S 1 936 585 13Gasoil 50 ppm - 754 17Fuel Oil 1 651 1 373 32VGO 117 163 4Lubes 112 78 2Bitumen 277 285 7Waxes 6 - -Naphtha 417 372 9Sulphur 5 -Semi finished products 2 134 3Global 5 404 4352 100

Source SAMIR

Production and Yields

During the year 2009, SAMIR overall production decreased by 19% due to the drop of the processing for the reasons explained above.

It is to note that the refinery started in 2009 the production of the Gasoil 50 ppm thanks to the commissioning of the upgrade project phase1.

• 31 •

Capital Projects

In the year 2009, the company dedicated a budget of 195 MDH for the achievement of the following capital projects :

• Reliability enhancement of gauging and metrology system; • Energy efficiency improvement, with the installation of boilers Soot-blowers, pressure stabilization of fuel oil & gas system, and the compressor of flare gas;• Substitution of critical machines and equipments; • Continuation of the Tank Rehabilitation Program launched in 2003 and implementation of the Safety projects according to the Insurers recommendations; • Development of information system;• Improvement and maintenance of infrastructure and building.

Besides, several logistic fast track projects were achieved during the year 2009, in connection with the Upgrade project, namely:

• Fuel Oil Railway Loading (Mohammedia Terminal) which is meant to facilitate the fuel oil deliveries (600,000 MT/Y) to ONE Kenitra and other customers by railway wagons through new pipelines from the refinery tanks; • MTBE Octane Booster for Gasoline Blend whose main goal is to increase the refinery gasoline blend production by about 20% ;• Heating System for Upgrade Feed Tanks which main objective is to provide and maintain suitable operable temperature (70-80C) for 4 VGO & Atmospheric residue of Upgrade phase 2 feed tanks;• Upgrade Pipeline Network Modification which is meant to modify the Gasoil, Naphtha and Gasoline distribution pipelines Network inside the refinery and the terminal to meet the customers’ needs and to minimize port demurrage;

Furthermore, a redeployment program was carried out for the majority of the staff; only 80 persons were left at site.

MT 2008 2009 %

GASOIL 631 965 446 345 -29Unleaded 1 060 11 648 999FO2 391 010 8 491 -98

Sidi Kacem Site

On January 2009, SAMIR proceeded with the shutdown of all the refinery units following the upgrading of Mohammedia refinery.

Currently, the site is used as terminal of petroleum products, namely the Gasoil 50ppm and unleaded gasoline which are delivered by means of a pipeline.

In fact, the site is considered as a strategic supplier of north and northwest areas of Morocco.

Globally, the total quantities sold of petroleum products as of ended 2009 reached 466 484 MT.


• 33 •

• 35 •

Administration and Finance


1. Human Resources Given the fundamental changes the company is going through in terms of upgrading its refining tools, SAMIR carried on its program relative to the modernization of its mode of governance and its Human Resources Management mechanisms in order to keep up with these changes.Through these actions, the company aimed to meet the following objectives:

• Manpower optimisation • Skills development • Reinforcement of Social Actions

Manpower Optimization

In 2009, 83 agents benefitted from the early retirement program, which represents a total manpower decrease of 6.9%.

As part of the promotion program, 45 agents moved to higher positions, which represent 3% of the global manpower.Besides, the company hired 25 new employees (20 highly qualified technicians and 5 senior staff). The main objectives of these recruitments are to reinforce the existing staff, especially the technical one, and to ensure the continuity, especially that 103 agents will be reaching the retirement age by 2015.The table hereafter presents Manpower situation as of December 2009.

This year was also characterized by the implementation of the new system of evaluation among the senior staff in order to ensure a regular follow up of their performances based on the objectives set in the beginning of the year. It also represents a means to recognize individual efforts and reward them accordingly.

Jan 09 Depart & Status Recruitment Dec. 09 Retirement Change Total Staff 1058 83 17 -2* +45 11 1012ANAPEC trainees 142 6 45 14 105Global 1200 89 17 -47 +45 25 1117

Senior Staff becoming managers

• 37 •

Skills Development

SAMIR modernization program was accompanied by several training actions which aim at reinforcing human potential and consolidating the acquired skills. Along the year, SAMIR organized 102 training actions in favor of 1 023 agents representing 89% of total manpower.The total costs of these actions reached 15 million DH, representing an increase of 85% compared to the previous year.

The trainings concerned mainly the following areas:

• Operation of the Upgrade Project, • Integration of new staff, • Implementation of the RSE system • Consolidation of the global management system• Reinforcement of the security system • Acquisition of refining fundamentals • Mastering of the new version of SAP• Setting up EDMS project• Mastering functions of the maintenance preparation and supervision

Reinforcement of Social Actions

For the sake of motivating its personnel, SAMIR continued the reinforcement and the improvement of the social benefits for its staff, namely : • Improvement of the holiday centers; • Modernization of the company’s restaurants; 83% of the meals’ costs are supported by the company;• Reinforcement of the holiday centers by the signature of conventions with several hotels in El Jadida, Marrakech and Agadir;• Adding new transport vehicles to the personnel;• Increasing the social gratification amounts;• Increasing the number of the personnel benefiting from the pilgrimage.

2. Finance


Finance Strategy

Despite the difficulties the company went through in the year 2008 and the financial crisis affecting the whole world, SAMIR was able to conclude several financial deals with attractive conditions in order to be able to finance its operations and optimize the costs.

Accordingly, the company signed several short term financings with international and local banks in order to finance its crude oil and products supply. The total short term financing signed in 2009 reached 13.7 billion DH.

In addition, SAMIR evaluated several financing proposals such as pre credit crude facility.

As for the medium and long term debts, the company launched a debt restructuring program to bring its balance sheet back to its normal situation. As such, the company started negotiations with several local and international banks to come out with the best scenario for the debt restructuring, after which BCP was mandated as the lead arranger of this operation. Besides, SAMIR shareholders decided to support the operation through providing the company with a current loan.

As part of the major projects’ financings, the company is negotiating the Topping 4 financing with local banks and export credit agency.

Furthermore, SAMIR will enter into a financing with the Austrian office for promotion for a global amount of 21 million Euros in order to finance the bitumen production increase project.

SAMIR and the Stock Market

Casablanca Stock Market

During the year 2009, the capitalisation in Casablanca stock exchange reached 508.89, billion DH as of ended December, down by 4.3% compared to the previous year.

The total value of shares and bonds traded since the beginning of the year was 127 947.58 million DH, of which shares’ value both in central and block markets reached 110 764.26 million DH.

The Moroccan all shares index (MASI) value ended up the year with a total of 10 443.81 points, thus representing a variation of -4.92% compared to the beginning of the year. As for the MADEX, it performed 8 464.47 points, a variation of -6.58%.

SAMIR Share Price

SAMIR share price ended up the year with 546 DH compared to DH 579 of the previous year, thus representing an annual variation of -5.69%. The highest price of the year was DH 715 performed on 25th of February.

Yet, following the official publication of the company’s financial statements on March, the share price dropped to its lowest level of DH 546 pushing the company to repurchase its own shares. Soon afterwards, the recovery was seen and the stock has been trading between DH 600 and DH 644 from April to August before falling beyond DH 550. By the end of the year a slight recovery was noticed.

In 248 sessions, the number of shares traded was 625 618 with a daily volume averaging 2 523 shares.

SAMIR Share Trend

Source : Casablanca Stock Exchange

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SAMIR, MASI, MADEX


2009 2008 2007 2006 2005 2004

Share Price (MAD per share) High 715 884 1 104 1 053 617 370Low 545 579 780 562 325 285Average 614 740 900 878 497 324Year-end 546 579 803 830 574 354Stock Market Ratio Dividend Yield (%) - - 3.5 2.68 8.3 7.4Net Earnings per share (EPS) 46,63 - 35.42 36.56 39.8 35.1Price/Earnings Ratio (PER) 11,71 - 16.3 22.4 8.1 9.6


Jan Jan Feb Feb Mar Mar Apr May May Jun Jun Jul Jul Aug Sep Sep Oct Oct Nov Dec Dec

3. Information Technology


In 2009, SAMIR carried on the implementation of the modernisation program of its information systems.

SAP ECC6(SAP ERP Central Component)

SAMIR achieved the shift to SAP ECC6. The project is beneficial in a way that it offers many technical and functional improvements, such as enhancing the interface and users’ environment for security purposes, and the BI as an integrated reporting tool.

Electronic Document Management System

The company carried on the implementation of EDMS which aimed to optimize the workflows and keep record of all its internal documentation.

The project is divided into two subparts; the first deals with the administrative documentation; it consists mainly on the management of administrative mail through establishing digital office order, tracing workflows and managing paperwork.

The second has to do with the management of technical documentation, namely scanning and storing SAMIR technical documents, managing the workflows, and overlapping with SAP system.

PI System for Upgrade Project

For the new PI system integration, the following actions took place in the course of the year 2009:

• Installation and configuration of PI OPC interface connected to DCS Yokogawa system in MCB.• Creation and configuration of about 25 000 tags• Development of new units’ process monitoring application based on PI process book

Thin client

This project has as main objectives the modernisation of the computer park, improvement of the management performance, improvement of SAMIR information system efficiency and compliance with safety and data integrity constraints.

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Modernisation Program


1. Upgrade project

General Description

The upgrade Project, which was initiated on September 2005, comprised the construction of a modern refining complex with new units that are totally integrated with the existing refinery. The units are designed as to meet the international refining norms as far as protection of environment, Safety and yields are concern.

Project Progress

Project Phase I

The year 2009, was characterized by the completion of the construction works relative to upgrade project and the start up of phase 1.

On April 2009, the mechanical reception was announced for 18 units, from which the main process units are the Sulphur Recovery Unit, Hydrogen Production Unit, Hydro treatment Unit, Amine Recovery Unit and Sour Water Unit.

The completion works, the pre commissioning and the commissioning activities were carried out during December 2008 and June 2009, and were supported by international experts from Preem, licensors such as UOP, KTI, Chevron Lummus Global and Parsons, as well as the vendors experts. The company also obtained,

Germanisher Lloyd safe operations certificate for all the units in operation, for 5 years.

The production of the gasoil 50ppm started on July 25th, with a production daily rate of 8 000 ton per day. Its commercialization was launched in the beginning of August 2009.

The performance test of the Distillate Hydrotreater was 100% successfully performed in September 2009, at 8000 T/D, in the presence of the licensor UOP. The units are currently productively maintained under operating tests.

Project Phase II

The phase II of the upgrade project concerned the finalization of the construction works, the pre commissioning, the commissioning, the test and the start up of the hydrocracker and the vacuum distillation units.

By the end of 2009, the construction works reached 99.9% for the vacuum distillation unit and 99.5% for the Hydrocracking unit.

The pre commissioning was at 99.6% for the vacuum distillation unit and 76.5% for the Hydrocracking.

All arrangements and necessary actions were taken for the start up of these units by mid February 2010.

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Post Upgrade Technical Assistance

SAMIR intends to put in place an efficient organization to ensure the technical support for the Hydrocracking complex according to the best practices and design performance.

The technical support required by SAMIR will concern 30 specialists, mainly:

• Hydrocracker unit chief Operator and Panel Operator • Process Senior Engineers• Senior Maintenance Engineers

Project construction highlights

The construction of the project started effectively on March 2006 with the signature of the EPCM contract with SAIPEM and the ordering of the first stage reactor.

Detail Engineering

The project required more than 1.5 million working hours for the detail engineering, and the procurement services carried out by the Italian company SAIPEM.

Procurement

Under this project, the company proceeded with the purchase of 760 equipments with a total weight of 50,000 Tons. In fact 406 purchase orders were placed with 185 suppliers.

The transport and handling of the material were carried out by international companies with international high level coordination mainly of the over weighted and oversized equipments.

Construction

The construction works carried out by the Turkish company TEKFEN, totalized 25 million working hour

without record of lost time accident, major accidents or injuries. The construction key main indicators are as follows:

• Structural Concrete: 112 000 m3• Steel structure erection: 11 180 T• A/G Piping installation: 12 320 T• LV & MV cables pulling: 850 Km• Instruments erection: 9 135 U• Insulation: 161 000 m²• Painting: 131 000 m2

The number of the manpower reached 4 500 persons during the peak period. The supervision of the construction was under the responsibility of SAIPEM

Quality Control

The Piping Test Packs and the Instrument Loops check have been carried out while respecting the quality standards, and in conformity with the requirements of the high technologies installed.

Training Program

During the year 2009, the company continued its upgrade training program. The total training reached 3 497 training days in favour of 963 persons.

These trainings mainly concerned the refining, process, maintenance, safety and quality fields which were carried out by external experts and upgrade equipment vendors.

Commissioning and start up

The project commissioning and start up of phase 1 were under the direct responsibility of SAMIR staff, supported by SAIPEM, PREEM, Licensors and International Experts.

The phase 1 commissioning and start up were achieved according the project manuals and were very successful.


New Refinery Configuration

Project Cost

The total cost of the project reached 9.8 billion dirham including the exchange rate impact. This cost was heavily impacted by the cost’s increase in the international market during the peak period of 2006 – 2008, following the major changes in the market conditions generating an increase of the raw material cost and the energy prices.

In addition, the delay of the reception of material has extended the construction schedule beyond the original planning. SAMIR has put in place a construction fast track program in order to reduce the impact of this delay on the project which generated an extra cost as well.

Configuration

Nelson complexityCapacityNew product

Yield

Installed Power Environment standards

Pre-Upgrade

Hydro-skimming and Lube refinery8.2125 kbpd

Gasoil + Jet A1 : 41%Fuel : 29% _ _

Post Upgrade

hydro-cracking refineryLubricant complex12.8140 kbpd (including VDU)Diesel 50 ppm: 2.7 MTDiesel 10 ppm: 1.0 MTGasoil + Jet A1: 57%Fuel : 17%40MW cogeneration Meet new Moroccan standards and the world bank standards except for the SO2 emissions

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2. Cogeneration Project

3. New Crude Distillation Unit “ Topping 4 Project”

In connection with the Project of Mohammedia Refinery Upgrade, SAMIR proceeded in the year 2006 with the construction of the Cogeneration plant with a total capacity of 40 MW. The project is meant to ensure a reliable supply of power to the main units, reduce the company’s energetic dependency, improve the energy efficiency and meet the environmental standards.

The new plant uses the technology of combined cycles connecting a General Electric Gas turbine of 40 MW to a boiler, thus, efficiently generating around 70 tons per hour high pressure steam.

The plant is designed as to operate either by gasoil or by natural gas. Indeed, the use of the gasoil will ensure a better improvement of the air quality through the reduction of SO2 emissions by around 1500 tons per year.

The project schedule was 34 months for construction, commissioning and start up. The construction works was realised by the French company LITWIN.

The company Jacobs was in charge of project management consulting services; it mainly ensured the compliance of services relative to the detail engineering, construction, commissioning and pre commissioning under the EPC obligations.

The project cost was 33.5 million Euros, financed by Calyon through secure financing approved by Coface, the French Export Agency.

The start up test was successfully achieved on March 31st 2009; the plant is currently under production and is interconnected with the national network of the ONE.

The performances achieved during the start up test has an average power gross output of 41.44 MW, and 169 ton per hour of steam high pressure. A contract was signed with the company GE for the maintenance of the cogeneration plant.

Description of the project

The operation of the Upgrade Project requires an additional crude distillation capacity to meet the new vacuum distillation unit (VDU III) and then the Hydrocracker unit vacuum gasoil demand.

As such, the company is putting in place the topping IV project as a replacement for the existing Topping I and II of both Mohammedia and Sidi Kacem. The maximum capacity of this new unit is 4 million tons.

The project includes as well:

• The construction of a new Jet Merox unit of 600 000 MT with the license technology of Merichem. This unit gives SAMIR extra flexibility to manage in optimal way the sulfur balance and increase production of high quality jet for export.• The extension and revamp of the existing LPG Merox and Amine units in order to process the extra LPG flows from the Topping 4 unit.


Contribution of the project

The project will be beneficial in many key respects, namely the protection of the environment, respect of the norms applied for the future refining products, and improvement of energetic efficiency and product quality.

Thanks to this project, the company will reduce the importation of atmospheric residue, replace the old technology by a more efficient and secure one, and maintain the strategic refinery capacity to 8.2 MT/year, thus reinforcing the country’s security of supply and meeting the future demand of fuel oil for power production.

Project Progress

The project reached the following progress:

• July 2008, Reception of the environmental impact assessment acceptability.

• July 29th 2008, signature of the EPCM services contract with Techicas Reunidas, for a global amount of 17 million Euros.

• End of 2009:

Negotiating the conversion of EPCM contract to an EPC contract. The total project cost is estimated to 168 million Euros, to be financed by Calyon and Crédit du Maroc with the support of the Spanish export credit agency.

EPCM services reached a progress of 35.2%, with 53% achieved at the level of the detail engineering works, 31% for procurement and 1.5% for the construction services. The mechanical completion is planned for September 2011.

• Currently, SAMIR and Techicas Reunidas are finalizing the EPC contract. This latter will be effective as soon as the financing is closed.

The main products of the CDU4 are:

• LPG: 365 000 tons/year• Naphtha: 617 000 tons/year• Jet Fuel: 600 000 tons/year• Gasoil towards Hydrotreater unit: 1 150 000 tons/year • Atmospheric residue 1 620 000 tons/year

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4. Road Bitumen Production Increase Project

SAMIR is undertaking a project to increase the refinery production of road bitumen. This project must satisfy first Morocco future demand for road asphalts; the excess production will be exported to regional market.

Project Progress

On October 30th 2009, SAMIR has signed an EPC Contract with the Ostrich Group PÖRNER for the extension of Mohammedia refinery road bitumen capacity from current 280 000 tons per year to 560 000 tons per year. This project includes an extra road bitumen unit based on PÖRNER BITUROX Licence with capacity of 280 000 tons per year for a total amount of 20.7 million Euros. The Project realization schedule up to ready to start-up is 17 months from the commencement of the work. The commissioning of this project is planned for March 2011.

Description of the project

The BITUROX® Process allows the production of bitumen under mild blowing conditions in an effective and economical way. The feedstock is Vacuum residue received from three different locations, (i) Vacuum Unit 31, (ii) Vacuum Unit 10 and the VR storage. The Design Capacity is of 800 tons per day.

The Biturox® Unit is equipped with a safety interlock system to prevent operational accidents and to ensure a safe operating environment.

The project includes two new storage tanks of 5 500 MT each, heated with MP-Steam by circulating the product via an external heat exchanger. The same circulation pumps serves also as loading pumps for the new installed loading stations. From the new installed product tanks the product is loading into trucks at two new loading stations placed in front of the existing bitumen loading. The total installed new loading capacity is 1000 tons in 16 hours a day.

Impact on Refinery Material Balance

The base case for comparison corresponds to the current refinery equivalent production of Fuel oil N°2 (about 400 000 tons per year) as blending of vacuum residue feed to the new Road Bitumen Plant (being 280 000 tons per year) and gas oil (around 30%) to meet the current local specification of the Fuel oil N° 2. After integration of the new road bitumen plant, the refinery road bitumen production will increase by 280 000 tons per year, while the quantity of gas oil saved from fluxing the vacuum residue is 120 000 tons per year.


5. New Steam Turbo Generator Project

General Description

SAMIR intends to install a new Steam Turbo Generator inside Mohammedia Refinery for energy recovery.

Accordingly, the company signed an agreement with LITWIN France on July 2, 2009 to perform Basic Engineering for the project.

First project configuration shows that the New Steam Turbo Generator shall be a backpressure type to be fed with HP Steam (210 t/h currently downed to MP Steam level) and to be recovered to MP Steam (210 t/h) for the refinery needs.

This configuration is meant to cope strictly with the refinery steam and power supply target without additional steam production none condensation and to offer the highest operating flexibility and reliability for the MP steam generation from the Steam Turbo Generator.

The HP Steam feed will be delivered from the existing CTE II boilers (110 t/h) and the cogeneration plant (70 t/h) and from the upgrade HP Steam Distribution System (30 t/h).

The New Steam Turbo Generator will be sized to generate about 10 MW to the refinery.

Contribution of the project

The new backpressure Steam Turbo Generator will allow the reduction of the power supply cost from ONE Grid. The expected cost saving is estimated to be 62.2 million DH per year (5.5 Millions Euros per year).

The project cost is estimated to be around 7 MM€ with a pay out time of 15 months.

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DevelopmentPerspectives

During the year 2010, SAMIR will carry on the implementation of its strategic plan 2008-2012, which is based on four main axes:

• Upgrading its tools and Enhancing the margin• Streamlining the operations• Increasing the local share market and searching for new opportunities• Complying with environmental rules and standards• Achieving Operational Excellence

Accordingly, the company set up its main objectives for the year 2010 while taking into consideration all market factors that are likely to affect its activity both internationally and nationally:

Economy outlook

International level

There is a great controversy over the outlook of the world economy during the year 2010. Yet, most economists anticipate a strong recovery and expect the world output to rise from -0.8% to 4%.

In most advanced economies, the recovery is expected to remain slow due to the heavy effect of the previous crisis, whereas in many emerging and developing countries, the growth will be relatively vital thanks to the strong internal demand. Given the high oil inventory and the modest increase of oil demand expected in the next few years, real oil prices are not expected to rise significantly. However, this sector will depend on the supply and demand development; any substantial disruption to global supply could result in a sharp rise in prices once again.

Domestic level

According to IMF, the growth pace of the Moroccan economy during the year 2010 will depend upon the Euro Zone development, as it is considered as the top trading partner of the kingdom.The IMF assumes that the Moroccan economy would probably grow 3 to 3.5% next year.

SAMIR Strategy 2010

SAMIR did not overlook any aspect of its activity while setting up the objectives for the year 2010.


New Refinery Complex Operation

In order to ensure a smooth operation of all the upgrade project units, the company will focus on the following critical issues:• Unit availability and utilization rates • Internal consumption and losses • Steam and power systems reliability • Operation of the upgrade project according to the design performances. • Quality of operation systems • Process follow up • Quality and capabilities of maintenance

This phase of the project requires a strong technical support. For this reason the company will proceed with following actions :

• Appoint highly qualified senior engineers to ensure transfer of knowledge. • Reactivate Technical Services Agreement with Shell Global Solution. • Conclude Technical Services Agreement with licensors. • Implement the technical documentation management system

Marketing

In the course of 2010, SAMIR intends to sell most of its products in local market with the aim of increasing its market share and maximizing its revenues.Accordingly, the company projects to increase its local sales quantities by 5%, from 5 697 KT to 5 989 KT and therefore, be able to increase its market share from 77% to 80% excluding LPG

Supply and Trading

Supply and trading objectives are all set in accordance with the fundamental changes the company is going through and its current financial situation.

Focus will be on adapting the planning and scheduling with the new refinery configuration using the Haverly system, ensuring the feedstock for Hydrocracker unit and optimizing crude oil and feedstock supply prices in

order to achieve the margin objective. Furthermore, the company will continue to improve its material balance in order to further master its losses. The use of Sigmafine software for material balance consolidation will guarantee the accuracy and reliability of the data.

Risk Management

SAMIR, like any oil refinery can be affected by the international oil market which is subject to adverse price movement of crude oil and products. The exposure to such risk is enough to increase the company’s costs or dramatically reduce its profits.

So to manage these risks, the company is setting up an adequate hedging strategy which will be implemented in the course of the year 2010. Furthermore, a dealing room is going to be established to better monitor these risks.

Cost Monitoring

In order to meet its financial commitments and maintain the equilibrium of its balance sheet, SAMIR set an adequate strategy to increase the profit margin by at least 50% within the next 2 years.

The company will also further work on reducing costs relative to its operations, namely costs connected to chemicals and financial operations.

Operational Excellence

In the search of achieving operational excellence, the company is and will constantly works hard to develop the following areas:

• Human Resources Management • Skills Development • Extending quality management systems to all key processes • Safety Performances • Automation and IT system projects (GED, SAP… etc)

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Major Projects

In the course of the year 2010, the company will continue the implementation of the following projects:

• Crude oil Distillation Unit N°4 : description of the project was provided in the major projects section.

• Road Bitumen increase : This project is meant to meet Morocco demand in road bitumen and export the surplus to the regional market. The project will allow the increase of Mohammedia refinery road bitumen capacity from 280 000 t to 560 000 t. The EPC contract was signed with Ostrich Group PORNER on October 2009; its commissioning is planned for March 2011.

• Wind park project : SAMIR signed a memorandum of understanding with NAREVA, an affiliate of ONA group, to supply the company with energy generated from wind power station of 40MW. The construction of this park will continue during 2010.

The company allocated a budget of 165 MDH for the 2010 capital projects.

Long Term Projects

• LNG Terminal Project : SAMIR will continue to study all the options relative to LNG terminal and Natural Gas pipeline projects.

• Petrochemical Project : The Company is planning to create a petrochemical complex based on steam cracking processing. This unit is meant to produce the ethylene and propylene which are necessary for the manufacturing of polyethylene and polypropylene.

Strategic plan 2011-2015

On June 2010, the company intends to carry out a strategic review with the assistance of international consultants in order to set up its strategic plan for the next 5 years.

It is worthy to mention that SAMIR has successfully met all its strategic objectives of the previous years.

Currently, the company is listed among the most modern refineries in the area with high complexity and efficiency. A company that is able to deliver light products with comfortable margin.

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Sustainable Development


1. Health and SafetySafety

Given the potential risks associated with the refining activities, risk assessment and safe practices are of a paramount importance in any oil refinery.

As such, several actions were taken during the year 2009 to attain these two objectives, namely:

• Focus on proper use of the permit to work system in particular and all Safety procedures in general,• Systematic Induction of all contractors’ personnel,• Training of operators on safety during refining activities, • Establishment of Prevention Plans for major maintenance works,• Implementation of improvement recommendations from Insurers, Authorities, Audits and Risk Assessment Studies,• Establishment and update of procedures,• Safety and emergency preparedness trainings in cooperation with National Civil Defence,• Installation of additional fire and gas systems within the plant• Organisation of safety audits by the BSC

Besides, like every year a week safety, which involves several seminars and trainings relative to different safety aspects, was organised to increase the awareness of SAMIR personnel about the importance of safety.Thanks to these actions, no high potential incident, fire of was recorded along the year. Furthermore all incidents were ranging between minor and low gravity according to the company’s risk assessment.

The Total Recordable Injuries frequency reached 3.3 compared to 2.6 recorded last year.

Security

Oil refineries maybe faced with range of threats and risks that can inflict significant damages on their staff and installation.

SAMIR is constantly taking several security measures to avoid such risks, namely

• Systematic identification of all people accessing the site in coordination with Local Police Department• Reinforcement of automatic control equipment at the main gate• Reinforcement of CCTV system by adding new cameras• Strong use of the Automatic Control Access System for people and vehicles.

As an ultimate output, no significant threat was recorded all along the year 2009.

Health

Concerned about its staff’s health and wellbeing, several projects were carried out to protect its staff.In the course of the year 2009, a highly equipped new restaurant opened its doors for all SAMIR staff and management. A perpetual follow up of the hygiene conditions is ensured in order to guarantee the food freshness and the cleanness of the area where it is served.

Furthermore, the construction of the new health occupancy contributed a lot in the management of the hygiene aspect of the company.

With the AH1N1 flu invading the entire world, SAMIR took several measures to face this epidemic, namely:

• Creation of vigilance committee• Distribution of flyers to increase the awareness of the staff• Reinforcement of all the necessary actions prescribed by physicians

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2. Global Management System

Integrated Management System

The company successfully obtained the renewal of ISO 9001:2008 following an audit compiled by MCI & Bureau Veritas in the period of March 30th to April 2009.

Furthermore, the year was characterized by the extension of the integrated management System to the following processes:

• Energy & environment.• Process & Technical study• Strategy – MIS – Finance• Human Resources processes The manual of QHSE system was updated as to integrate Safety, Environmental and SA 8000 requirements.

Part of the several actions taken to achieve customer satisfaction, a survey was conducted with SAMIR’s key customers, which findings was used to better improve the company’s relationship with these clients.

The Six Sigma Projects achieved in 2009 concerned mainly Corrective & Preventive Maintenance Processes. The next project will deal with the oil movement process.

Environmental Management System

SAMIR continued the implementation of the Environmental Management System according to ISO 14001 vs. 2004. The main actions carried out this year concern the update of several tools namely, Environmental analysis, Environmental Emergency preparedness procedure, inventory regulatory, identification & Evaluation of environmental aspects, Environmental program for production and EMS’s procedures.

Furthermore, the company enhanced the internal communication relative to best practices to be adopted for environmental protection purposes.

Health, Safety and Security Systems

SAMIR proceeded with the identification of occupational hazards & risks assessment for operations and facilities processes.

Furthermore, the following OH&S procedures were established:

• OH&S risk assessment • Emergency situations and preparedness • Plant change

As far as the Security Information System is concerned, the company launched the ISO 27001 project.


3. Environment

Always as part of its commitment to contribute in the sustainable development, SAMIR actions were all oriented towards mastering and improving its environmental performances.

Energy Saving

Total energy consumption was reduced from 24 895 T/ month in 2008 to 23 916 T/month in 2009, representing a decrease of 3.93%. This result was achieved thanks to the construction of the in house cogeneration plant which lessened the company’s full dependency on ONE.Furthermore, the year 2009 saw the implementation of some energy saving projects, namely:

• The installation of some sootblowers, • The flare gas recovery using compressors : the erection works reached 60%. • The pressure stabilization of the fuel gas system : the erection works reached 70%.

Besides, SAMIR started setting up an energy strategy in collaboration with Shell Global Solution which main objective is the reduction of the SOLOMON energy intensity index to reach an Ell of 100 by the year 2014 for the existing refinery; besides some other aspects relative to Energy saving.

Waste Water Treatment In order to optimise its water resources, SAMIR fixed an ambitious objective of reducing its water consumption by

25% in three years. This program is being implemented by means of an efficient action plan that comprises a strong vigilance on wastes, introduction of closed circuits, increasing the users’ awareness, as well as a systematic auditing.

During the year 2009, based on SAMIR monthly follow up the quality of the discharge water to the sea was in compliance with the norms, except for some disturbance of the biological treatment due the high variation of chloride and the solvents existence.

Furthermore, the two LPEE monitoring carried out during the year showed good results.

Gaz Emissions As part of SAMIR action plan relative to the reduction of SO2 emissions by 30% in the period of 2006-2009, the following result was achieved :

SO2 Evolution

Evolution SO2 - T/j

2002

92,7

72,867,7 63,0

56,3

21,48% 26,94% 32,05%39,24%

2006 2007 2008 2009

Reduction SO2 %

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4. SAMIR and Societal Responsibility

Several citizenship actions were carried out by SAMIR in the course of the year 2009.

Supporting the Environmental Actions

The environmental dimension is considered to be one of the basic parts of SAMIR’s citizenship approach. Accordingly, the following actions were carried out during the year 2009 :

Renewal of its partnership with Mohammed VI Foundation for the protection of the environment through :

• Supporting the Qualit’Air program launched in 2005. This program aims at improving the quality of air in the Kingdom, through the reduction of Gas emissions.

• Sponsoring the maintenance of Mohammedia centre and Mannesmann beaches. As a reward, the company was granted the trophee of Lalla Hasna for commitment.

Providing a financial support for the aforementioned foundation to back other environmental actions.

• Ensuring a continuous maintenance of the park “des Villes des Jumelées” which is located in Mohammedia.

• Renewing its partnership with Association des Enseignants des Sciences de la Vie et de la Terre «AESVT» section Mohammedia, section, in order to establish a school dedicated to the environmental education in Mohammedia centre beach.

• Organizing two workshops in favor of children whose age ranges between 8 and 14 years. These workshops concerned paper recycling and painting.

• Participation in the international conference relative to industrial waste management which was organized by Medwem association in the faculty of sciences and technical studies on December 2009. SAMIR has also provided a financial support to the event.

Solid Waste Treatment

SAMIR is constantly working on the reduction and treatment of generated quantities of solid wastes.

All the quantities of waste generated during the year 2009 will be eliminated at the start up of the incinerator.

As for the air quality, the monitoring carried out by LPEE in Mohammedia refinery during the year showed that the average values of the pollutants SO2-NOx particulates are lower than the limits fixed by the project of norms relative to the ambient air quality.

Air Quality Monitoring MH200935 -30 -25 -20 -15 -10 -5 -0 -

NOX SO2 Dust

June 09February 09

Max

i

Mini

Centi

le 95

Aver

age

Max

i

Mini

Centi

le 95

Aver

age

Max

i

Mini

Aver

age

Octobre 09 Norms NOX - SO2 Norm Dust

Other Societal Activities

As part of its commitment in the human development, SAMIR continue its support to actions of combating poverty and exclusion and protecting childhood and handicapped from incurable diseases. In fact, the company provides an annual support to foundations and associations of civil society such as Mohammed V foundation for solidarity, Mohammed VI foundation for reinsertion of prisoners and Lalla salma foundation for combating cancer.

Furthermore, the company carried out several charitable actions in favor of poor families through :

• Providing poor pupils with school bags and furniture • Participating in the solidarity actions of 3 000 families in Mohammedia city during Ramadan.

As an annual ritual, SAMIR contributed in the budget of the ACADEMIA foundation in order to grant scholarships to brilliant students, who belong to poor families.

Besides, the company provided financial contribution to engineering schools such as EMI in order to organize ceremonies in favor of the brilliant students.

As far as sporting and socio cultural activities are concerned, SAMIR provided financial contribution to the following events :

• 9th edition of the Moroccan trophy for equestrian activities

• 5th edition of Italian Cup organized by Italian chamber of commerce in El Jadida

• 10th edition of the World tour of Hassan II Pro-tour of Table Tennis.

Concerning the cultural and artistic fields, SAMIR sponsored the following events :

• Flower Festival organized in Mohammedia for the 3rd year

• First Festival of Sbata-Salmia organized in Casablanca

• 3rd edition of Soufie culture organized in Fez

• International festival of “Tourtite” in Ifrane

• 3rd festival of short films organized in Mohammedia

For the sake of contributing in the improvement of schooling conditions, SAMIR supported several associations dedicated to achieve this purpose :

• Al Jisr association through taking in charge 3 high schools (2 in Mohammedia and 1 in Sidi Kacem).

• Injaz Al Maghrib association which gives the opportunity to pupils to run small bus. SAMIR supported 2 projects. ; the first one concerned an edition of internal newspaper and the second was the establishment of an information system center which was awarded the first prize in Morocco and the prize of the best innovative product in Lebanon during the international competition organized in Beirut in the month of June.

Besides, the company continued to support integrated program of « Developpement intégré des Douars » in the regions of Mohammedia and Sidi Kacem to combat analphabetism.

It is also worthy to mention that SAMIR and Corral group were the official partners of the 8th edition of international congress for Arab women investors organized for the first time in Morocco,

By these actions, the company confirms once again its commitment in supporting social & societal activities and in preserving Moroccan cultural asset.


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SAMIR Subsidiaries


SALAM GAZ

SALAM GAZ ended up the year 2009 with a turnover of DH 2 344 million and a net income of DH 104 million, representing an increase of 7% compared to the previous year.

SAMIR Ownership 50%Capital MAD million 150Sector LPG ( Logistics )Activity Bulk LPG reception, storage and transportation + LPG gas drums filling up

MDHIndicators 2008 2009 Variation %

Turnover 3 456 2 344 -32%Equity 372 387 4%Financial Debts 247 260 5%Net Income 97 104 7%

Key Information

Key Financial Indicators

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SOMAS

In the course of 2009, SOMAS reached a turnover of DH 124 million and a net income of DH 64 million; down by 6% compared to the previous year.

S.A.M.I.R Ownership 38.56%Capital MAD million 60Sector LPG ( Logistics )Activity Storage of Butane in Underground Cavity


Turnover 129 124 -6%Equity 174 183 5%Financial Debts - - Net Income 68 64 -6%

Key Information


Société de Transport Stockage des Produits Pétroliers (TSPP)

TSPP ended up the year 2009 with a turnover of DH 6 million and a net income of DH 1 million. It is to note that the owners equity increased by 100% compared to the previous year.

S.A.M.I.R Ownership 100%Capital MAD million 1Sector Logistics Activity Transportation, Storage of Petroleum Products


Turnover - 6 -Equity 1 2 100%Financial Debts - - -Net Income - 1 -

Key Information



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Accounts Analysis


1. Marking events

2. Performance Analysis

The year 2009 was characterized by the effective start up of the Cogeneration project and the progress of the Upgrade project works.

The fiscal year was marked by the signature of the revolving financing conventions for a global amount of $ 345 million in order to finance

crude oil and finished products importations.

Furthermore, as part of the new distillation unit project financing, the company concluded a financing contract with CALYON for a global amount of Million 15 Euro.

The decrease of the turnover in 2009 is mainly due to the price effect. Indeed, the quantities sold during the year reached 6.5 Million Tons compared to 6.7 Million Tons recorded in the previous year, which represents a decrease of 3%. The average sales price decreased from 6166 DH/tons in 2008 to 4 138 DH/tons in 2009, or a variation of -33%.The local turnover in 2009 represents 89% of the total turnover compared to 90% of the previous year.

The increase of the sales on imported goods is mainly explained by the increase of the imported products during the first half of the year 2009.

Gross Margin on SalesThe gross margin on sales reached DH 407 million as of ended December 2009 compared to DH 335 million recorded in the previous year, which represents an increase of 21%.

Added ValueThe added value reached DH 669 million compared to DH - 357 million recorded in 2008 representing an increase of 287%. This strong performance is achieved thanks to the contribution of gross margin on sales (+21%) and the increase of the stock variation by +238%.

MDH dec.-09 dec.-08 Variation

Sales from production 14 283 27 907 -49%Sales from imported products 9 659 9 560 1%Local sales 23 942 37 475 -36%Exportations 3 009 4 097 -26%Total Turnover 26 951 41 572 -35%Local Sales/Turnover 89% 90% Exportations/Turnover 11% 10% Sales on imp. Prod./Turnover 36% 23%

Turnover

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EBIDA

Earning before interest, depreciation and amortization ended the year 2009 with an amount of DH 349 million compared to DH -667 million in 2008. This increase is due to the improvement of the added value.

Operating Income

The operating income increased by 220% in 2009 compared to the previous year. This performance is due to the increase of the charges recovery and transfer by 368%, to reach DH 1 095 million as of ended December 2009. These transfers concern mainly the upgrade project.

Financial Income/ Loss

The year 2009 recorded a financial deficit of DH 281 million compared to DH- 224 million in 2008, or a variation of -25%. This deterioration is mainly due to the currency exchange loss.

Current Income

In 2009, the current income reached DH 689 million compared to DH -1 034 million recorded during the previous year.

Non Current Income

The non current income decreased by 16% in 2009 compared to 2008, from DH -57 million to DH -66 million. This deterioration is mainly due to increase of early retirement indemnities.

Income Tax

The income tax recorded a decrease of 35% compared to the previous year following the decrease of the turnover. In fact, this tax corresponds to the minimal contribution since of the imputation of 2008 fiscal deficit.

Net Income

The company achieved a net income of DH 555 million as of ended December 2009 compared to a deficit of DH - 1 196 million recorded during the previous year, which represents and improvement of +146%.

3. Balance Sheet Fixed Assets

The increase of the fixed assets is mainly due to the upgrade project investments.

Current Asset

The increase of the current assets is due to the increase of the accounts receivable and stock of semi finished products.

Long term Liabilities

The increase of the long term Liabilities is explained by the increase of net income during the year 2009, which reached DH 555 million.

Short term liabilities

The increase of short term liabilities is basically due to the increase of foreign debt supplier.

Cash

The working capital ended up the year 2009 with a negative value of DH-5.184 million, corresponding to a decrease of 74 % compared to the previous year. This deterioration is due to the increase of the fixed assets by 24% while the long term liabilities financing increased only by 7%.

The combined effect of the decrease of the working capital and the increase of the working capital requirement +52% engendered a deterioration of the net cash, by 69% compared to 2008.

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Financial Statements


Balance Sheet (Assets)

ASSETS

2009 2008 GROSS DEPRECIATION AND PROVISION NET CAPITALISED EXPENSES (A) 178 096 843,29 125 959 406,41 52 137 436,88 28 269 130,91 .Preliminary expenses 139 795 236,98 88 090 101,47 51 705 135,51 25 243 737,36 F .Prepaid expenses to be amortized over several years 38 301 606,31 37 869 304,94 432 301,37 3 025 393,55 I .Bond discounts X INTANGIBLE ASSETS (B) 302 859 448,91 232 756 443,53 70 103 005,38 69 879 215,86 E .Research & Development costs 65 128 852,88 65 128 852,88 D .Patents, brands, rights and other similary assets 174 329 446,03 167 627 590,65 6 701 855,38 6 478 065,86 .Goodwill 63 400 000,00 63 400 000,00 63 400 000,00 .Other intangible assets 1 150,00 1 150,00 1 150,00 TANGIBLE ASSETS (C) 18 537 298 732,89 4 302 903 579,03 14 234 395 153,86 11 472 637 019,03 .Land 72 665 488,36 72 665 488,36 72 792 450,96 .Buildings 912 904 932,11 689 208 541,60 223 696 390,51 185 975 025,86 .Plant and machinery 5 085 314 407,57 3 448 242 556,68 1 637 071 850,89 1 403 086 102,70 .Vehicles 37 340 077,23 36 354 756,74 985 320,49 2 206 367,17 .Furniture and fittings 122 482 777,17 105 645 403,93 16 837 373,24 12 757 530,13 A .Other tangible assets 7 811 503,04 6 442 402,02 1 369 101,02 1 606 022,38 S .Tangible assets in progress 12 298 779 547,41 17 009 918,06 12 281 769 629,35 9 794 213 519,83 S FINANCIAL ASSETS (D) 140 375 399,15 2 463 900,00 137 911 499,15 140 171 413,44 E .Loan receivables 25 949 725,23 25 949 725,23 28 802 139,73 T .Other receivables 7 583 988,94 911 000,00 6 672 988,94 6 080 488,73 S .Equity investments 106 365 785,00 1 552 900,00 104 812 885,00 104 812 885,00 .Other Investments and securities 475 899,98 475 899,98 475 899,98 UNREALIZED EXCHANGE LOSSES (E) 6 925 944,65 6 925 944,65 5 631 278,69 .Decrease of receivables .Increase of debt 6 925 944,65 6 925 944,65 5 631 278,69 TOTAL I (A+B+C+D+E) 19 165 556 368,89 4 664 083 328,97 14 501 473 039,92 11 716 588 057,93 C INVENTORIES (F) 4 751 085 246,95 113 510 729,76 4 637 574 517,19 3 481 361 146,55 U .Merchandise 193 073 132,73 R .Raw materials and consumables 2 566 323 212,72 60 583 920,62 2 505 739 292,10 2 025 317 727,45 R .Products in process 1 309 045 831,92 1 309 045 831,92 233 283 738,37 E .Intermediate and residual goods N .Finished goods 875 716 202,31 52 926 809,14 822 789 393,17 1 029 686 548,00 T SHORT TERM RECEIVABLES (G) 6 122 026 955,39 124 724 193,55 5 997 302 761,84 5 035 708 992,66 .Supplier’s receivables, prepaids 96 720 540,49 96 720 540,49 81 512 793,76 .Accounts receivable 3 592 184 020,32 45 616 985,45 3 546 567 034,87 2 540 885 523,23 A .Staff 16 414 273,43 13 328 853,33 3 085 420,10 6 380 010,90 S .Tax receivable 2 042 004 186,10 2 042 004 186,10 2 143 427 420,34 S .Shareholder’s accounts E .Other receivables 339 335 719,42 65 778 354,77 273 557 364,65 230 393 611,98 T . Pre-payments 35 368 215,63 35 368 215,63 33 109 632,45 S MARKETABLE SECURITIES (H) 90 842 673,69 2 239 977,69 88 602 696,00 UNREALIZED EXCHANGE LOSSES (I) 85 471 246,06 85 471 246,06 68 486 485,62 (Current items) TOTAL II (F+G+H+I) 11 049 426 122,09 240 474 901,00 10 808 951 221,09 8 585 556 624,83 C CASH AND BANKS A .Checks and equivalent S .Banks 616 091 674,49 616 091 674,49 60 917 816,22 H .Petty cash 837 080,21 837 080,21 1 499 384,93 TOTAL III 616 928 754,70 616 928 754,70 62 417 201,15 TOTAL ASSETS ( I+II+III) 30 831 911 245,68 4 904 558 229,97 25 927 353 015,71 20 364 561 883,91

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LIABILITIES 2009 2008

E

Q SHAREHOLDER’S EQUITY

U .Capital 1 189 966 500,00 1 189 966 500,00

I minus: capital subscribed and not paid-in

T including paid up capital as follows:

Y .Capital and merger premium 757 810 296,92 757 810 296,92

& .Revaluation difference

L .Legal reserve 123 658 650,00 123 658 650,00

O .Investment reserve 1 421 595 273,02 1 421 595 273,02

N .Other reserves 1 026 411 948,40 1 026 411 948,40

G .Retained earnings (1 196 042 244,21)

T .Non allocated income

E .Net income of the year 554 880 316,57 (1 196 042 244,21)

R TOTAL OF EQUITY (A) 3 878 280 740,70 3 323 400 424,13

M ASSIMILATED EQUITY (B)

.Investment subsidies

L .Regulated provisions

I LONG TERM DEBT (C) 5 212 426 149,29 5 241 227 359,05

A .Debenture bonds 800 000 000,00 800 000 000,00

B .Other long term debt 4 412 426 149,29 4 441 227 359,05

I PROVISIONS FOR CONTINGENCIES AND LOSSES (D) 225 073 381,16 166 168 921,79

L .Provisions for contingencies 56 515 734,62 21 265 474,80

I .Provisions for losses 168 557 646,54 144 903 446,99

T UNREALIZED EXCHANGE GAINS (E) 1 855 182,44

I .Increase of nonperforming assets

E .Decrease of financing debts 1 855 182,44

S TOTAL I (A+B+C+D+E) 9 317 635 453,59 8 730 796 704,97

CURRENT LIABILITIES (F) 9 340 527 304,47 7 620 730 119,16

C

U .Accounts payable and auxiliary accounts 9 036 997 998,35 7 299 074 800,38

R .Accounts payable; prepaids 24 969 454,05 64 847 837,60

R .Staff 13 450 977,64 21 050 646,63

E .Social security agencies 21 890 017,20 16 114 845,12

N .Tax payable 27 049 394,69 15 382 408,98

T .Shareholder’s accounts 4 000 244,00 4 000 244,00

.Other payables 70 373 217,41 76 587 242,10

L .Accruals and deferrals 141 796 001,13 123 672 094,35

I OTHER PROVISIONS FOR CONTINGENCIES (G) 85 486 090,63 68 486 485,62

A UNREALIZED EXCHANGE GAINS (H) 25 147 060,14 5 591 162,47

B (Current items)

TOTAL II (F+G+H) 9 451 160 455,24 7 694 807 767,25

C BANK OVERDRAFT

A .Discounted bills

S .Treasury loans 5 559 216 933,31 1 991 007 471,81

H .Bank loans and overdrafts 1 599 340 173,57 1 947 949 939,88

TOTAL III 7 158 557 106,88 3 938 957 411,69

TOTAL LIABILITIES ( I+II+III) 25 927 353 015,71 20 364 561 883,91

Balance Sheet (Liabilities and Stockholder’s Equity)


TRANSACTIONS TOTAL 2009 Previous years 2009 2008 1 2 3=1+2 4 I OPERATING REVENUES .Sale of goods (as found) 9 658 837 139,17 9 658 837 139,17 9 559 533 882,31 .Sale of goods and services 17 249 330 717,02 43 015 054,52 17 292 345 771,54 32 013 340 291,74 .Net Sales 26 908 167 856,19 43 015 054,52 26 951 182 910,71 41 572 874 174,05 .Changes in inventory 921 791 747,86 921 791 747,86 ( 667 969 525,02)O .Fixed assets produced by the company for itself P .Operating subsidies received 26 656 372,65 26 656 372,65 27 187 415,85E .Other operating revenues 3 942 950,56 3 942 950,56 17 109 978,12R .Operating recoveries; expense transfers 1 094 767 576,86 1 094 767 576,86 233 923 830,31AT TOTAL I 28 951 383 553,56 46 958 005,08 28 998 341 558,64 41 183 125 873,31I II OPERATING EXPENSES N .Purchase of goods sold 9 251 635 720,41 ( 7 889,13) 9 251 627 831,28 9 224 280 774,31G .Consumed purchase of raw materials and supplies 17 586 827 298,69 167 390,78 17 586 994 689,47 31 757 419 027,50 .Other external expenses 368 543 922,60 ( 3 218 504,05) 365 325 418,55 280 508 433,24 .Taxes (except corporate taxes) 27 155 356,68 82 065,96 27 237 422,64 25 528 216,13 .Payroll expenses 320 250 357,53 ( 431 175,24) 319 819 182,29 311 783 101,36 .Other operating expenses 1 198 961,13 1 198 961,13 8 754 750,50 .Operating allowances 475 749 213,41 475 749 213,41 384 581 138,09 TOTAL II 28 030 161 869,32 ( 2 209 150,55) 28 027 952 718,77 41 992 855 441,13 III OPERATING INCOME (I-II) 970 388 839,87 ( 809 729 567,82) IV FINANCIAL REVENUES .Revenues from equity shares & financial securities 59 408 540,00 59 408 540,00 43 870 700,00 .Gain on exchange 151 059 563,52 151 059 563,52 409 049 791,48F .Interests & other financial revenues 11 186 241,57 11 186 241,57 29 517 752,02I .Financial recoveries; expense transfers 74 117 764,31 74 117 764,31 7 521 649,93NA TOTAL IV 295 772 109,40 295 772 109,40 489 959 893,43N V FINANCIAL EXPENSES C .Interest expenses 275 818 865,62 ( 3 857 249,53) 271 961 616,09 344 797 928,81I .Loss on exchange 210 512 513,36 210 512 513,36 295 300 359,74A .Other financial expenses L .Financial allowances 94 637 168,40 94 637 168,40 74 117 764,31 TOTAL V 580 968 547,38 ( 3 857 249,53) 577 111 297,85 714 216 052,86 VI FINANCIAL INCOME (IV-V) ( 281 339 188,45) ( 224 256 159,43) VII CURRENT INCOME (III+VI) 689 049 651,42 (1 033 985 727,25) VIII NON CURRENT REVENUES N .Proceeds on disposal of fixed assets 5 536 915,30 5 536 915,30 301 050,00O .Received subsidies N .Recoveries of investment subsidies .Other non current revenues 54,19 54,19 528 871,79C .Non current recoveries; expense transfers 232 500,00 232 500,00 U TOTAL VIII 5 769 469,49 5 769 469,49 829 921,79R IX NON CURRENT EXPENSES R .Net book value of disposed assets 146 255,25 146 255,25 227 200,00E .Granted subsidies 4 113 984,84 4 113 984,84 6 544 767,63N .Other non current expenses 62 550 141,69 19 830,56 62 569 972,25 50 864 388,12T .Non current allowances 5 100 000,00 5 100 000,00 TOTAL IX 71 910 381,78 19 830,56 71 930 212,34 57 636 355,75 X NON CURRENT INCOME (VIII-IX) ( 66 160 742,85) ( 56 806 433,96) XI INCOME BEFORE CORPORATE TAXES (VII+X) 622 888 908,57 (1 090 792 161,21) XII CORPORATE INCOME TAXES 68 008 592,00 68 008 592,00 105 250 083,00 XIII NET INCOME (XI-XII) 554 880 316,57 (1 196 042 244,21) XIV TOTAL REVENUES (I+IV+VIII) 29 299 883 137,53 41 673 915 688,53 XV TOTAL EXPENSES (II+V+IX+XII) 28 745 002 820,96 42 869 957 932,74 XVI NET INCOME (total revenues - total expenses) 554 880 316,57 (1 196 042 244,21)

Income Statement

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2009 2008

1 NET INCOME 554 880 316,57 (1 196 042 244,21)

2 + OPERATING ALLOWANCES 412 975 620,51 355 433 019,74

3 + FINANCIAL ALLOWANCES 6 925 944,65 5 631 278,69

4 + NON CURRENT ALLOWANCES

5 - OPERATING RECOVERIES 71 005 273,90 34 109 228,67

6 - FINANCIAL RECOVERIES 5 631 278,69 6 605 143,68

7 - NON CURRENT RECOVERIES

8 - PROCEEDS ON DISPOSAL OF FIXED ASSETS 5 536 915,30 301 050,00

9 + NET BOOK VALUE OF DISPOSED ASSETS 146 255,25 227 200,00

I SELF FINANCING CAPACITY 892 754 669,09 ( 875 766 168,13)

10 - DISTRIBUTION OF EARNINGS 237 993 300,00

II CASH FLOW 892 754 669,09 (1 113 759 468,13)

2009 2008

1 .Sales of goods (as found) 9 658 837 139,17 9 559 533 882,31

2 - .Purchase of goods sold 9 251 627 831,28 9 224 280 774,31

I = Gross margin on sales (as found) 407 209 307,89 335 253 108,00

II + Production of the year 18 214 137 519,40 31 345 370 766,72

3 .Sales of goods and services 17 292 345 771,54 32 013 340 291,74

4 .Changes in inventory 921 791 747,86 ( 667 969 525,02)

5 .Fixed assets produced by the company for itself

III - Consumption of the year 17 952 320 108,02 32 037 927 460,74

6 .Consumed purchases of raw materials and supplies 17 586 994 689,47 31 757 419 027,50

7 .Other external expenses 365 325 418,55 280 508 433,24

IV = Value added (I+II+III) 669 026 719,27 ( 357 303 586,02)

8 + .Operating subsidies received 26 656 372,65 27 187 415,85

9 - .Taxes (except corporate taxes) 27 237 422,64 25 528 216,13

10 - .Payroll expenses 319 819 182,29 311 783 101,36

V = Earnings Before Interest, Depreciation and Amortization (EBIDA) 348 626 486,99 ( 667 427 487,66)

11 + .Other operating revenues 3 942 950,56 17 109 978,12

12 - .Other operating expenses 1 198 961,13 8 754 750,50

13 + .Operating recoveries; expense transfers 1 094 767 576,86 233 923 830,31

14 - .Operating allowances 475 749 213,41 384 581 138,09

VI = Operating income 970 388 839,87 ( 809 729 567,82)

VII +/- Financial income ( 281 339 188,45) ( 224 256 159,43)

VIII = Current income 689 049 651,42 (1 033 985 727,25)

IX +/- Non current income ( 66 160 742,85) ( 56 806 433,96)

15 - Corporate income taxes 68 008 592,00 105 250 083,00

X = Net income 554 880 316,57 (1 196 042 244,21)

Statement of Composition of Income

Statement of Cash Flows


2009 2008

Application Funds Application Funds

I Source of funds

-Cash flow (A) 892 754 669,09 (1 113 759 468,13)

.Self financing capacity 892 754 669,09 ( 875 766 168,13)

-Distribution of earnings 237 993 300,00

-Disposal and reduction of fixed assets (B) 7 974 662,75 7 730 133,98

.Disposal of intangible assets

.Disposal of tangible assets 330 238,53 227 200,00

.Disposal of financial assets

.Recoveries of long term receivables 7 644 424,22 7 502 933,98

-Increase of assimilated equity (C)

.Capital increase, assets brought in

.Investment subsidies

-Increase of long term debts (D) 76 367 327,75 1 157 729 929,72

(excluding redemption premiums)

Total (I) (A+B+C+D) 977 096 659,59 51 700 595,57

II Application of funds

-Acquisition and increase of fixed assets (E) 3 030 540 929,60 4 850 251 977,37

. Acquisition of intangible assets 3 735 373,27 1 895 644,00

. Acquisition of tangible assets 3 021 421 046,40 4 844 390 684,75

. Acquisition of financial assets 999 500,00

. Increase of long term receivables 5 384 509,93 2 966 148,62

-distribution of shareholder’s equity (F)

-Redemption of long term debts (G) 104 592 347,36 77 562 418,03

-Formation expenses (H) 40 009 616,00 10 187 018,11

TOTAL II (E+F+G+H) 3 175 142 892,96 4 938 001 413,51

III Financing requirements variation 467 041 908,27 6 575 115 620,47

IV Cash position variation 2 665 088 141,64 1 688 814 802,53

TOTAL 3 642 184 801,23 3 642 184 801,23 6 626 816 216,04 6 626 816 216,04

MASSES 2009 2008 VARIATION 2009/2008

Assets Funds

1 Long term liabilities 9 317 635 453,59 8 730 796 704,97 586 838 748,62

2 Minus Fixed assets 14 501 473 039,92 11 716 588 057,93 2 784 884 981,99

3 Working capital (1-2) (A) (5 183 837 586,33) (2 985 791 352,96) 2 198 046 233,37

4 Current assets 10 808 951 221,09 8 585 556 624,83 2 223 394 596,26

5 Minus current liabilities 9 451 160 455,24 7 694 807 767,25 1 756 352 687,99

6 Financing requirements (4-5) (B) 1 357 790 765,85 890 748 857,58 467 041 908,27

7 Net cash position (assets - liabilities) (A)-(B) (6 541 628 352,18) (3 876 540 210,54) 2 665 088 141,64

Balance Sheet Synthesis

Statement of Source and Application of Funds

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• 85 •

Resolutions of the Ordinary General Meeting

FIRST RESOLUTIONThe Ordinary General Meeting, after the presentation of the Management report and the auditor’s report for 2009 Company’s financial statements, which shows a net result of 555 880 317 DH, approves these financial statements such as presented. The Ordinary General Meeting grants full and final discharge to the Directors for their management during 2009 fiscal year. The Ordinary General Meeting grants full and final discharge to the Auditors for the execution of their mandate for 2009 fiscal year. This resolution was adopted by unanimous vote

SECOND RESOLUTIONThe Ordinary General Meeting approves the Board proposal to appropriate the net income of 2009 fiscal year to the balance carried forward. This resolution was adopted by unanimous vote

THIRD RESOLUTIONThe Ordinary General Meeting, having listened to the auditors’ special report about agreements and transactions referred to in article 56 of the law n° 17/95 relative to the joint stock company (SA) such as completed and modified by the law n° 20-05, approves the conclusions and the agreements stated in the said report. This resolution was adopted by unanimous vote

FOURTH RESOLUTIONThe Ordinary General Meeting fixes at DH 3 600 000 (Three million six hundred thousand dirham) the total amount of Directors’ fees to be paid to the Board of Directors during the fiscal year 2010.This resolution was adopted by majority of vote

FIFTH RESOLUTIONThe Ordinary General Meeting ratifies the nomination of M. Jason T. MILAZZO, as Board Director, co-opted by the Board during the session of October 01st 2009, in replacement of Mr. Lennart WIKSTRÖM. Mr. Milazzo is nominated as Director for a three-year period; its mandate will expire in the date of the Ordinary General Meeting that will resolve 2011 financial statements.This resolution was adopted by unanimous vote

SIXTH RESOLUTIONThe Ordinary General Meeting grants full powers to the bearers of copies or extract from these meeting minutes in order to carry out all formalities concerning the resolutions set out above, as stated by the law.This resolution was adopted by unanimous vote


2009Annual Report

Société Anonyme Marocaine de l’Industrie du RaffinageBP. 89 & 101 Mohammedia - MarocTél : 212 5 23 32 42 01 à 04 - Fax : 212 5 23 31 71 88Site Web : www.samir.ma - E-mail : [email protected]

annual report 2009 - samir · 2011-04-27 · sheikh mohamed hussein al-amoudi board of directors’...

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