We trust the following will be helpful and explains what we do, who we are and the investment to date in the Falkland Islands by SSL.
Why was SSL started?
- Falkland Islands Government (FIG )required large capital investment and experienced partners
- Due to then shortage of public funds, FIG required investment from the private sector
- Existing facilities in 1987 were very poor
- Due to the size of the domestic market it was linked to the Bunkering market of the fishing fleet
- An Exclusive licence was awarded in 1987 after an exhaustive competitive tendering process
What is the Shareholding of SSL?
Since 2005 it has been as follows:
- Falkland Islands Government (FIG) 45%
- S & JD Robertson 30%
- Lavinia Corporation 25%
Who sits on the Board of SSL?
Each Shareholder is allowed to have two representatives on the Board as Non- Executive Directors and the Chair must be one of the FIG nominated Directors. There are up to three Executive Directors on the Board.
The current Board is as follows:
Mr Andy Keeling, Chief Executive, FIG
MLA Mr R Spink, FIG
Mr RS Robertson, S & JDR Group
Mrs F Bain, S & JDR Group
Mr P C Laskaridis, Lavinia Enterprises
Mr S Fletcher, Lavinia Enterprises
Mr G Goodwin, Managing Director
Ms J Jaffray, Financial Director
Is SSL a Falkland Islands Company?
Yes SSL has a FI registered number 8257 and only operates/trades in the Falkland Islands and surrounding South Atlantic waters. It pays FI Corporation Tax.
How is the Domestic Fuel price controlled?
The Domestic Fuel Price is controlled by the Domestic Fuel Formula (DFF) which is made up of the following:
- Prime Fuel Cost
- Operating Costs (only those attributed to the Domestic Fuel)
- Stockholding finance
- 1.5% profit only allowed
How is the Domestic Fuel Price Monitored by FIG to ensure that only fuel related costs are included in the Domestic Fuel Formula (DFF)?
The DFF is monitored as follows:
- There is an “Open Book” Policy with FIG who annually audit the DFF and confirm that costs are applied correctly to the DFF
- FIG have access to records – which are very transparent
This gives peace of mind that only fair and reasonable costs are allocated to the DFF.
What Advantages are there to the Falkland Islands of SSL having an Exclusive Licence for the Domestic Fuel?
- No price discrimination throughout the Islands
- All Customers (Businesses, Farmers, Senior Citizens etc) in the Islands have the same products at the same prices
- Good quality products
- Reliable service – There never has been a failure to supply fuel
- Obligation to supply all fuel for which there is a demand however small the quantities
- Secure Supply in difficult circumstances
- SSL must hold a strategic Stockholding of Fuel (3 months)
How is the Bunker Price controlled?
There is a contractual Maximum Sales Price (MSP) defined by reference to a basket of prices available at competitive in the region.
How is the Bunker Price monitored by the FIG?
- Within the territorial waters (12 miles) there is a Current Selling Price (CSP) which is published on our web site and other dedicated paid for access Bunker price web sites.
- SSL must submit a monthly verification Report to FIG confirming all sales at a price below the MSP.
What advantages are there to the Falkland Islands of SSL having an Exclusive Licence for the Bunker Fuel up to 12 miles from the Islands?
- SSL must supply product 365 days per year, there can be no cherry picking which would mean product would only be available at peak times during the year (Fishing and Cruise Seasons)
- It must be good quality product
- Alternative products available – various grades of Fuel Oils
- Reliable Service
- Competitive prices
Achievements of SSL
- World Class Facilities
- Highly Skilled, trained and motivated Workforce
- High Levels of Service
- Operate to Internationally Recognised Standards
- Products always available with suitable Notice
Since 1987 the Company has generated a total profit before tax of £37,270,000 and has invested £25,000,000 in the infrastructure of the Islands (Fuel Depot/ Road Tankers, Petrol Station, Offices, Retail Unit, Warehouses, Houses, The Malvina House Hotel and Darwin Lodge). This represents £8,529 of investment for every person living on the Islands.
In addition since this period it has paid FIG in Corporation Tax and Dividends £12,335,000 (includes corporation tax estimate for 2017). This represents £4,208 for every person living on the Islands which when added to the Investment program means that each Falkland resident has benefited by £12,737 since SSL started operations.
This is an excellent record of reinvesting in the Islands and contributing to the economic growth and vibrancy of The Falkland Islands since the exclusive licence was awarded to SSL.