PUMA Energy took over from Esso Belize in the middle of this year - and now the company is changing the terms under which it does business with fuel wholesalers, UNO and SOL.
PUMA presently imports and stores all the fuel that comes into the country - and then sells this to the wholesalers, who in turn sell it to their branded fuel stations.
In the past, ESSO would give the wholesalers 15 days of credit. But now PUMA is changing it to ten days.
It might not sound like that big a deal, but when you're dealing with thousands of gallons of fuel - that change can consequentially affect a company's cash flow.
And that's just what UNO's Local Finance Officer told us 11 days ago.
Andrea Eiley, Local Finance Officer
"Well it will affect our cash flow and so right now what we are doing is the credit analysis to see how we could negotiate with them and come to a common ground because it hasn't been finalized as yet. But it does affect out cash flow."
Jules Vasquez
"But if it is implemented you all will have an issue with PUMA?"
Andrea Eiley, Local Finance Officer
"Not really. If it's implemented we would try to comply. Like I said, we will negotiate to try to find a common ground. I am sure PUMA - we are all in the same industry and they are trying to do the same thing. They are trying to make their business profitable and so they are also looking at their portfolio and trying to find ways of making it profitable."
Jules Vasquez
"Do you think Esso was losing money though? I don't think Esso was losing money. They are trying to maximize their profits, like you."
Andrea Eiley, Local Finance Officer
"Yes, would you be in a business without trying to maximize your profits? I don't think so."
Jules Vasquez
"I wouldn't try to chase everybody out of the business. I think PUMA is trying to muscle you all out of the business the same way you all are muscling the locals dealers out."
Andrea Eiley, Local Finance Officer
"We are here to stay."
Since then PUMA has stuck to its position forcing the wholesalers to comply.
UNO is still holding out, and threatening a legal challenge, while it appears SOL is giving in.
The first payment under the new terms becomes due on November the 15th.
Email
Print