Petronas might be able to supply product from the Aden refinery. Engen has taken delivery of the first of two product tankers. Coming at a time when South African liquid fuel demand is soaking up all the capacity of the country's refineries, there must be some question marks over whether the usage of these vessels will justify the investment. Engen has entered the Zimbabwean downstream oil business in a joint venture with subsidiary Ximex Holdings. Upstream Engen holds major strategic interest in Energy Africa .
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Refinery performance was better than in the previous year. The company's results for the year to 31 August 1996 appear a significant improvement on the previous year, though not up to investor expectations judging by the slump in the share price following the announcement. If the inventory profit swing of R 116 million and manpower savings, estimated to be R 130 million down on 1995, are considered, then 1996 earnings would be lower than 1995. For the foreign investor, this decline would be even more marked as a result of the weakening currency. Refinery throughput, but not white product yields, improved, though management concede there is still room for further improvement.