Welsh Newspapers

Search 15 million Welsh newspaper articles

Hide Articles List

8 articles on this Page

ANGLO-PERSIAN.

News
Cite
Share

ANGLO-PERSIAN. Tenth Annual Meeting! of Company. ,I PROGRESS IN SWAN- SEA AND THE EAST. l' Dividends Declared. I Yesterday the tenth ordinary general meeting of the Anglo-Persian Oi4 Co., Ltd,, was held at Winchester House, Old Broad-street, E.C., at noon, Sir Cha.ies Greenway, Hart., presiding There was a large attendance of shareholders. The secretary (Mr: J, Macindoe), hav- ing read the nouce convening the meeting and the auditors' report. CHAIRMAN'S SPEECH. I Tbe Chairman, in moving the adoption I of the report 01 the directors and the balance sheet as at 31st March, 1919, said: Via again have the satisfaction of lay.ng before you a most satisfactory statement of the company's position, and with the large extensions of the company's busi- ness, which are now in progress, or un-i-er contemplation, and the growing demand all over the world for petroleum prodt ets of all kinds, I think we may look forw-lid with absolute confidence to furt ler largely increased prosperity from year to year as tho business of the company becomes developed to an extent cor. es- ponding more to its great potentialities. BALANCE SHEET. I In dealing with the company's accounts I will follow the usual procedure of first commenting upon the balance 6heet. Tak- ing the first two items you will see fiiat on the debit side there are no fresb issues of either share capital or deben- ture stock during the year covered by the accounts; but as you are aware we are now making a large issue of capi'ai regarding which I shall later on havd a few remarks to make. The next item calling for remark is the amount ot E45,266 lOs. 3d. standing to the credit of the Employes' Provident Pension and fit surance Fund. This was made up of a five per cent contribution on the amount of their salaries by the em- ployes, and of a like percentage by the company, to the Employes' Provid >nf Fund, and of a contribution by the com pany of (-21,030 12s. 2d., the equivalent o' 10 per cent. on the salaries, to the Pan crion and Insurance Fund. You will, < am sure, all be pleased to see that this substantial start has been made in thf scheme of which I outlined the details aP the last annual meeting, and it will. nc doubt, be gratifying to the employes ti. know that it is the intention of the boarr to augment the company's contribution* to the Pensions and Insurance Fund from year to year as profits increase, so that employes may share liberally 1D the pro* pority of the company. The item of £ 1,200,000 whien has been plaoed to reserve is an estimate of ou" liability for excess profits duty for the whole of the periods since the excess profits duty first came into operation The next item calling for remark 1B that of reserves. These you will see havf been augmented bv £.530,000. and, I have no doubt, you will all approve of the prudence which has prompted us to con- serve as large a portion of our profits Aq possible in the form of reserves rathei than to pay large dividends, particularly in view of the large increase of capita) expenditure we have ahead of us. Comma now to the assets side oj the Balance Sneet there is very little, I thin. requiring explanation. One item w"hic]> shows a very large increase is Stocks or Stores and Materials at Field and Rp- finery." This increase is due partly to the growth of our business necessitating the retention of larger stocks, but chiefly to the large increase in cost of all materi- als, particularly tin plates, shooks. and chemicals, of which these stocks largely consist. The amount due to us by the Persian Government in respect of the claim for losses sustained by the cutting of our pipeline in 1915 has been reduced by the credit of further Royalty. In con- nection with this item T am glad to sav that negotiations of a friendlv character are now proceeding with the Persian Foreign Minister, Prince NasrnJ--ed-Do^v- leh. who eamp over recently with'thp Shah with a view to arriving at a settlement with the Persian Government of this and all other outstanding questions. PROFIT AND LOSS ACCOUNT. I Turning now to the profit and loss ac- count you will see that the nett profit for the year under review, after making ample allowances for depreciation, and paying Debenture Interest and Royalty, was £ 2.010,805 7s. 7<1_, as compared with £ 1.308,558 Gs. Id. in the previous year—or an increase or more than 9700,01)0. Tin's, gentlemen, is a very satisfactory result, indeed, particularly in view of the fact that we had to contend against two ad verse factors, viz (1), that our fleet wnq uwler requisition for practically the wholt- of the year and that the earnings from this source were therefore very sfnn. and (2) that the profits of our distributing (Kjnpanies wer also on a much reduced scal o owing to their businesses having beer carried on by them on aceouiit of the Government on a basis which only gave them a small commission on sales The increased profits were due mainly to a larger throughput and to the hetter prions realised abroad for some of our £ yoducts. In the current year there will tte a further increase in throughput and increased earnings from our fleet, and I think wo may confidently look for- ward to a profit of not less than £ 2.600.000 in our next accounts. Thp balance remaining at the credit of trofit and loss account, after making t-ho tit riau8 allocations to reserves which I have already referred to. is £ 725.VJ7 19s. id.; of this Solm £ 1?0.000 has nlrcadv 4-en ?aiil awav in r"->-et of preference fibrre dividends, and it is now nropospd to de- clare a further nerfiei, fin-, dividend on he preference shares at the rate of 2 per lent .-)Pr annum, and 6 rtividpnr1 of 10 per -ent per annum, free of income tax. on the ordinary shares, leaving a balance of G275.5S7 1.. to be carried forward. THE RETURN ON GOVERNMENT I CAPITAL. When addressing you at the last moet- .ng I pointed out the return which His Majesty's Government were then getting on the capital they had invested in the company. The return to the Government, for the year with which I am now deal- ing, taking into account their interest in the sums which have been placed to r(- serves, is a very handsorte one and w^il justifies them in their investment. In addition, as I have previously pointsd out, they have derived a great financial benefit from the favours. ble contracts which they have been able to make with the company for fuel oil and other pro- ducts as a consideration for their hive t- mentv As has been pointed out in the report the further extensions for tfhi h frestji capitaf was raised t\VO years ago yre hq| yet in operation. When they are jompleted the throughput will be doubWl, and there {s every reason for anticipates that the profits will show a corresponding increase. NEW CAPITAL. I To provide for the further developments I foroc&stftd in my remarks at the last annual meeting., and for others which have since been resolved upon we have, as you are all well aware, just made ua I issue of 910,100,000 of new capital— £ 4,500,000 in the form of ordinary shares which have all been taken up at par by the ordinary sliareliolders. X3,000,000 by H.M. Government, and 91,500,000 by the ordinary shareholders, £ 3,000,000 in 6 per cent. participating preference shares, and ^82,500,000 in 5 per cent. debentures which have been offered to the public. The two latter issues were offered on what I think may be regarded as ex- tremely favourable terms. I am unable as yet to state the definite results 01 the issue owing to the enormous number of applications which have to bo dealt with, but it is already evident that the Pre- ference Shares have been very largely over-srbscribed, although the applica- tions for the Debenture Stock are some- what disappointing. To permit of this new capital being raised, and extra- ordinary meeting of tha company and meetings of the Debenture-holders and Pref erence-holders vere held on the instant, at which res-Sations authorising the increase of the capital of the com- pany to zC20,000,000, and tho issue:; I have referred to, were unanimously adopted. The programme of further de- velopments for which this additional en pital is required includes (I) "<'di- tional pipe lines and pumping stations to enable us to transport a largely in- creased output of crude oil; (2) further extensions to the refineries in Pers, a ^3) the completion of the refinery now be- ing constructed at Swansea (4) the es- tablishment of a large number of acldi-1 tional fuel oil bunkori itg installations in the United Kingdom and abroad; (5) large additions to the distributing faci- lities of the British Petroleum Co.; (G) the acquisition of a number of additional tank steamers; (7) the exploration end testing of new territ-orities in various parts of the world; (8) EI,000,000 new capital which we have undertaken to subscribe to a comnany called" Scot- tish Oils Limited," which has been formed to put the Scottish shale oil in- dustry on a more satisfactory basis, etc., etc. These developments, it is almost needless to say, are all of a remunera- tive character, .d when they have be-en brought into operation the profits of i11" company will be very materially en- hanced. FIELDS AND PRODUCTION. The fields from which we are produc- ing still ma intain their extraordinary high rate of yield-ti-ie only limit to pro- duction being the extent of our trans- port and refining facilities. As you v ill have gathered, however, from the ] o- gramme of extensions we have before us. every effort is being made to extend these facilities as quickly as possible to the full economic extent of the capacity of the fields. No fresh fields have been proved since I last addressed you, but the testing operations to which I then referred, and also others, are being car- ried on actively and give promise of favourable results. REFINERIES AND PIPE LINES. As I have already mentioned, the ex- tensions to our refinery and pipe lines in Persia, which have been in hand for some time past, and which when I last ad- dressed you we hoped would be brought into operation during the present year, are not yet completed .This has been extremely disappointing to us, but at the same time I don't think this delay is scarcely a matter of surprise since the amount of work involved is very great and the difficulties in the way of obtain- ing delivery of plant, and also in the mat- ter of labour, have been extreme. I can only say that our staff in Persia are striv- ing their utmost to bring this work to an early conclusion. The work at the Swan- sea refinery is also iiiaicing as satisfactory progress as can be expected under present labour conditions, and we hope to be able to begin operations there some time dur- ing the course of the coming year. As you are all aware, we have recently ac-, quired a controlling interest in the Scot- tish Shale Oil Companies, through the company which has bren formed under the title of Scottish Oils, Ltd., and have thereby added considerably to our refin- i ing facilities in this country. Tho re- fineries of these companies have a com- bined capacity much in excess of the pre- sent output of shale oil, and our intpn- tion is to supply them witn such addi- tional quantities of natural crude oil from Persia or elsewhere as may be necessary to enable the refineries to be utilised to the full extent of their capacity. This will not only effect a substantial reduc- tion in the present refining costs of shale oil, but also, by combining the manage- ment of tVse concerns under one com- r panv, largelv reduce the costs of adminis- tration. By these combined economies we hope to be able to keep alive a home in- dustry giving employment to, many thousands of men, which otherwise was doomed to destruction, since shale oil. with presQnt high costs for the labour qn(I fuel required for mining and retorting the qhale, and the heavy administration ex- penses involved in working indepen- dently a number of comnanies. erc-h having only a comparatively small pro- duction, cannot, even when shale oil is produced in this country, possibly cora- pete with natural netroleum obtained in large quantities either from flowing wells or by pumping. We have also under con- templation the erection of refineries in other part- of the world, it being a de- monstrable fact that to such extent as the products can be disposed of in such coun- tries. it is far more economical to refino the crude oil in the countries where the products are to be eold, than in the countries where the crude is produced. This is a point regarding which there has been some difference of opiniori in the past among oil producers, but which is now pretty generally accepted as an qxiom. So much 00. that I understand some of the other big oil producers are now preparing to follow the lead of this company in this respect. FLEET.. When I last adressed you the total i deadweight capacity of the fleet then ailoat was 162,000 tons. To-day it i3 230.000 tons, and we have contracted for tonnage to the extent of a turther 270,001 ] tons, bringing our total Hoot" in esse or in posse up to a total of 600,000 tons. The value of our fleet now afloat, at to-day's market value, is in the neigh- bourhood of £ 7,000,000, and when the boats now building or contracted for are delivered it will amount to not lees than 1:16,000,000. These, gentlemen, doubtless I eeein large figures, but to provide for the essential requirements of our business it will be necessary to make still further large additions to our fleet, and no opp< i- tunity. will be lost of doing this whenever; favourable opportunities may occur. In some quarters fears have been express-ad that the amount of tanker tonnage avail- able will before long be in excess of the world's requirements, but personally I have no fears at all on this point, as the great expansion in the consumption of petroleum products of all kinds, particu- larly of .fuel oil and of benzine, which is certain to come about within the next few years, and the consequent impetus that will be given to production all over the world, will, in my opinion, give ample employment to all the tanker tonnage, that ia likely to be produced for many years to come. DISTRIBUTING ORGANISATIONS. As I have already indicated, the pruiit of our distributing concerns—the British Petroleum Company and the Homeli; at Oil Company-were adversely affeciad during the year under review by the re- strictions which necessarily had to be im- posed during the war on the sale of pet- roleum products. Similarly, this year will be adversely affected, although to a smaller extent, but now that all rostric- tions have been removed, we are making verv extensive additions to both our coastal and inland depots throughout the United Kingdom with a view to establish- ing a selling organisation that will be second to none in this country, and there- by securing a position that will enable us to cater for a substantial share of the I British trade in petroleum products of ail kinds. In the carrying out of this object the old established distributing org?,,i i tions which had been created in Scotland by the Shale Companies recently taken over by us will, it is needless to say, be a very valuable adjunct. We have been unable, owing to the restrictions I have referred to. to take any part at all in the petrol trade of this country since the Bri- tish Petroleum Comnany censed to act as distributors of Shell petrol at the end of 1917, but now that all restrictions hav been removed, our distributing concerns are acrain entering the market for this pro- duct—our B.P." brand of petrol-whièh. I venture to predict, will one day be the most favoured brand amon-r all British motorist«—is already on sale at manv garages throughout the country, although until our benzine distributing arrarce- ments are more complete supplies v. ill n^cpissarilv be limited. These concerns will also act as our distributing organ-na- tions in this country for kerosene, wliMr spirit, fnol oil. gas oil, lubricating oils. and all other petroleum products. Fo- he bunkering trade in fuel oil we are re'-ijs- toring a QPonrab. oompinv, which will be in i position to meet the demands of c-hioowners for this form of fuel, both rov burning under boilers and for internal combustion engines, in a very substantial way I POLITICAL SITUATION. I The improved political situation be- tween this country and Persia to which I referred at the last meeting has since, as you all know, been followed by the conclusion of an agreement between the two countries which will, I venture to think, cement the relations of the two countries for all time; since on the one part it ensures asolute independence and a prosperous future to Persia, and on the other the permanent establishment of a friendly and independent Power in a part of the world in which this country has important interests. I stated at the last meeting that. we then expected to learn of the result of the discussions I which were at that time proceeding through our representative at Teheran I in regard to the settlement of the various questions outstanding between us and the Persian Government. These discussions were. however, postponed for the arrival in this country of the Persian Foreign Minister to whom 1 just referred. These questions are now being taken up actively with this gentleman, and I hope that a satisfactory solution of them will be shortly arrived at. The Imperial Com- missioner—His Excellency Farid-es- Sul- tanp,h-b,is lent us valuable assistance during the past year and I cannot speak too highly of the diplomacy and tact which has been displayed by him in his endeavours to promote the 'ntercgts of hip Government and at the same time avoid difficult positions with this company. I STAFF. I Before concluding my remarks I would again like to express oui great applica- tion of the services which have been ren- dered to us by our stafi in this country, in Persia and elsew here. For some years pust our company has been undergoing a process of continuous and rapid expan- sion, and this has necessarily thrown upon I the staff a great, amount of additional work beyond that involved in a station- ery or gradually expanding business. This additional work has beui particularly oneroas during the years of the war when our staff was much depleted, but our employes have ane And all re- sponded loyally and ungrudgingly to these calls upon their services, and I am &ure,,)(ia wiltmg;ee.wi.t-h we thaMfeey deserve our warmest thanks. During the past few months 1 am pleased to say that we have been able" to largely aug:T>>t our staff, and I hope that this will help to lighten the burden of their labours with mutual advantage to both themselves er>.i the company. I would also like to take this opportunity of expressing our regret at the loss of our friend and adviser. Sir Boverton Redwood. He always took a great interest in this company. In fact the company owes its existence to him, and in losing him we have lost a most tnisted friend and adviser. I now beg to move That the report of the director's balance sheet and profit and loss account for the year ended 30th March. 1919, be received, approved and adopted." The Right Hon. Lord Inchcape: I have pleasure in seconding that moti n. There wore no questions, and the motion was unanimously agreed to. I DIVIDENDS DECLARED. I The Chairman: The next buinesss be- fore the meeting is to declare dividends and f beg to move (1) That a participating dividend at the rate of 2 per cent. per annum less Income Tax be paid on the Preference ihares in respect of the vear ended 31st, March, ul19, and I Ûlal such dividend be paid together with the dividend at the rate of 6 per cent. per annum for the half. year ended on the 30th Septembor last payable on the 31st January, 1320. and (2) that a dividend at the rate of 10 per cent, per annum, freo of income tax, be paid on the ordi- narv shares in respect of the year ended 31st March, 1919. and that such dividend be also paid on the 31st January, 1920 Mr. John T. Carsill seconded this motion Carried unanimously. The Chairman; The next business before the meeting is the election of directors. As yon will have seen from the report, Sir Frederick Black, K.C.B.. and Mr. J. B. Lloyd have been elected to the. Board since our last meeting. Under Article 82 of the Articles of Association they now retire, and need to be re-elected. Sir Frederick Black is well known to all of you, and I am sure that vou will agree with me that this company has been very fortunate indeed in securing his services. and will heartily support his re-election. Mr. Lloyd is also a valuable acquisition to the Board by virtue of his long ac- auaintance with the oil business, particu- larly on its financial and commerci? side, and I have no doubt that ho w'U equally command your support. The directors retiring by rotation are Admirai I Slade, Mr. R. I. Watson and myself. As I am one of the number of retiring mem- bers, I think it better that this resolution should he propoaod by someone «Jx«» 'he Right Hon. Lord Southbob I movwi ¡ That the election to the Board of Sir Frederick Black and of Mr. J. B. Lloyd be confirmed, and that Sir 'Charles' Green way, Admiral Slade, and Mr. R J i Watson, who retire by rotation and are eligible for re-election, be and are here- by re-elected members of the Board Sir Hugh S. Barnes seconded. Carried unanimously. The Chairman: The only other matter before the meeting i6 the election of anditors. and 1 shail be dad if two of 't? shareholders present wHi kindly propc?f and second the nIWe&ary resn!u<ir?n. Mr. Prothero moved: That M?M?. Brown. Fleming and Murray he t Po- elected as auditors for the financial year ]919-21) at such a fee as may be detc miued by the board. Mr. D. McCowan seconded. Carried unanimously. The Chairman: That concludes the > business of the meeting. j Sir J. D. Rees, M.P., was eure share- holders would not like to part without J passing a vote of thanks to the chair- I man Thqy folt indebted to him for putr I ting before them figures of almost unim- j aginable magnitude in a simple and in- telligiblo fashion. The shareholders wer" proud of the statesmanlike management of the company, and he was sure they would like to express their gratitude, not only to the chairman, but to the board and the able agents of the vast concern, now in many parts of the world, for the inanner in which they conducted the t affairs of the company and brought them to a successful and even more, perhaps. to a general and political end. A great company like that flew the British flag and upheld British interests in many parts of the world, and contributed in no small measure to cement friendship with Persia, to which they knew in the high- est political quarters, great importance was attrched. ITe moved a hearty vote of thanks to the chairman, the board, ane. the staff. (Applause). Mr. Alfred E. llurso seconded. Carried unanimously. I The chairman, in reply, said there was no doubt that the Anglo-Persian Oil Co. would, in the course of time, be one of the most powerful, if not the most powerful, commercial undertakings in this country. It would always give him the greatest satisfaction to know the work done by him and his colleagues was ap- preciated. This concluded the business.

TOO MUCH FOR ONIONS. !

j START READING THIS STRIKING…

Advertising

.THE FORESHORE.I

THIN. WEAKPEOPLE GET STRONG…

SWANSEA PROPERTY.I

FINED FOR BREAKING FENCEI…