Catom Annual Report 2019 EN

Financing

adjusting its prices at various times during the day. The buying behaviour of customers is heavily price-driven. Catom responds promptly to this trend. By improving its supply process volume and, consequently, its opportunities to blend biofuels, Catom has managed to enhance its competitive position in this market. This has led to a positive effect on the margins in the year under review, combined with a limited decrease in the volume of this wholesale segment, which is Catom’s largest segment, by 6%. Catom is one of the five largest players in the Dutch wholesale market and sees opportunities for further growth in this segment. The major oil companies, also referred to as the ‘majors’, are expected to leave this market in due course, in order to focus more on upstream activities.

The investments in 2019 were all financed with internal funds. The total credit facility amounts to € 50 million. The cash flow from operating activities increased from € 9,250,401 to € 10,275,897, stock and operating capital effects, in conjunction with the investment and financing activities result in a decrease of cash of well over € 3.5 million. No major changes are expected in the company’s financing structure in the medium term.

Developments

Wholesale The core activity wholesale – Catom Distribution B.V., trading name Catom PDM – operates in a dynamic market with high price volatility. Prices in the internatio- nal market fluctuate significantly each day, increasingly even during the course of a day. Catom participates in this trend by

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