ABOUT THE COMPANY

Dermody Petroleum is one of the leading fuel distributors in South Australia, servicing customers from Kingston in the South East to Coober Pedy in the State’s far north and Eucla in the far west.

With fuel depots at Kapunda, Kadina, Loxton, Minlaton, Tailem Bend and Port Augusta - and sub depot at Keith and Head Office at BP Oil’s Largs North Installation - Dermody Petroleum has a strategic network of depots throughout rural South Australia.

The company operates and/or supplies almost 60 of the State’s rural BP retail outlets, and BP commercial accounts and undertakes the BP and Castrol Lubes cartage operations based at Largs North.

Priding themselves on professional and personal customer service, the team at Dermody Petroleum is committed to helping rural Australia continue the successes of recent times.

By using the latest technologies and supplying the highest performance fuel, Dermody Petroleum and BP aims to keep the farmer on the tractor and take away the stress of fuel purchasing.

Changing the face of fuel ordering and bookkeeping is Dermody Petroleum’s Internet website, designed with the needs of regional South Australia in mind.

The Dermody card is another initiative aimed at making life easier for their customers – available over 30 locations around the State, including four 24-hour locations.

Dermody Petroleum has grown from a one-truck operation started by Mick and Marie Dermody at Kapunda more than 30 years ago, to become one of South Australia’s leading fuel distributors and the only BP distributor resident in the State. The company entered into an equity arrangement with BP Oil in 1996 and now operates with the company’s current private shareholder, Kevin Clarke as its Managing Director.

Operating from the BP Terminal at Largs North, Dermody Petroleum now employs more than 70 people and believes its high levels of success stem from employing local staff with local knowledge.

By continuing to provide products and services of the highest quality, Dermody Petroleum will consolidate and enhance its position as a leading fuel distributor in South Australia.

CORPORATE SUMMARY

Dermody Petroleum is a soundly based business with competent and skilled management and a good variety of business built around a strong retail and depot network. It has a long term commitment to the market and has a reliable supply company with well placed refineries in Western Australia and Queensland.

The company is regarded by BP Australia as a key player in the Australian network. It is their only distribution arm based in South Australia.

The facilities are of good quality and conform with the current Health, Safety and Environment Legislation. There is ample scope for development and in the future the company is well positioned to adapt to change where necessary and absorb more business where financially justified.

RETAIL NETWORK

The company has recently embarked on a program of upgrading retail sites incorporating modern Convenience Stores across the state.

The company controlled retail network represents over 40% of the company’s sales and margins. The geographic spread is wide covering most major rural population centres and highways in their distribution area.

The company is now focussing on retail shop sites as a means of offering rural customers city style facilities and services. The company is a member of United Convenience Buyers (UCB) and has used the expertise of this company to plan shop redevelopments along with securing improved buying prices which are then passed on to the customer. The offer of improved shop sales via UCB is also passed on to lessees as part of the company’s attempt to improve their overall professionalism and viability.

PRESENT STRUCTURE - OWNERSHIP

BP Australia - 50%

K D Clarke - 50%

MISSION STATEMENT AND GOALS

The Company’s mission is to:

“Consolidate and enhance our position as one of the major leading fuel distributors in South Australia”

The company’s five major goals are:

• To provide products and services of the highest quality to satisfy our customers’ needs

• To foster a challenging and satisfying environment for our employees

• To carry out all aspects of our operations in a responsible and safe manner

• To make a fair return on investment through sound financial management and the efficient use of assets

• To seek and develop viable new business opportunities

PRODUCTS AND SERVICES

• Motor Spirits

• Diesoleum

• Lubricants and Greases

• Solvents

• Autogas

• Absorbent Clay

• STM Pumping Equipment

• Heating Oil

• BioDiesel

RETAIL NETWORK

TURNOVER

Company turnover is in the region of $200M pa.