A multinational has poured nearly $5 million into maintenance since completing a significant acquisition in the fuel distribution sector in late April, as it creates a specific repairs department in-house to drastically reduce costs. RUBIS, the publicly traded company, has received favorable reviews from retailers since officially acquiring Chevron's assets on April 30.
Stewart Gill, general manager for RUBIS in the western Caribbean, said the French multinational inherited a "mess of confusion, and a lack of authority and no clear leadership". He attributes the company's initial success to "simple business" and listening to its stakeholders. "We are focused on basic customer requirements, such as maintenance and building trust," Gill explained. "It is still the early days.
The business in The Bahamas has steadily declined over the last four years. I think we have created a budget for this year that is realistic and reflective of the current business." While The Bahamas is profitable, the general manager noted that it still has considerable potential. RUBIS has spent millions in recent months replacing equipment on the dozens of gas stations across the country, he said.
Indeed, a widespread complaint among retailers during the Texaco era was poor repairs and attention to detail. As RUBIS brings the facilities up to a certain standard, the French multinational is now taking it one step further by bringing all maintenance operations in-house. "In the past, we paid a lot of money but didn't get a lot of value," he told Guardian Business.
"This is the biggest thing we can do to reduce expenses." In fact, Gill believes the publicly listed firm can save to up 50 percent on its maintenance costs. Technicians and vans have already been put in place for the in-house team. And the result is paying dividends for retailers. Raymond Claridge, a former Texaco dealer who recently left the gas business following a spat with the previous company, commended RUBIS for coming in and cleaning up the industry.
He told Guardian Business most retailers are "quite happy" with the new arrangement, as they feel repairs are done properly and concerns are being heard. Another retailer, who wished to remain anonymous, called it a "complete change" from the situation under Chevron. "They seem to be of the mind to make sure we have a business that is viable and runs properly, and that takes care of the needs of consumers as a whole," he said. "Repairs have improved.
They are making sure everything is improved on the site, all my pumps are working properly. The minute anything goes down, they come and fix it right away." The vastly improved morale and in-house maintenance should begin paying dividends for the company on the whole. According to RUBIS' figures for the first hall of 2012, up until June 30, the group posted 34 percent growth in its EBIT and net income of 50.4 million euros, which represents an increase of 39 percent.
Vitogaz, a wholly-owned subsidiary of RUBIS, acquired Chevron's fuel business in The Bahamas, Turks and Caicos and the Cayman Islands earlier this year. Gill insists there is still a long way to go for both The Bahamas and the Western Caribbean. This country only came in on the "tail end" of these latest statistical results. "It is profitable, but not as profitable as it could be.
We still have a ways to go," he said. " The Caribbean field of business is an important part of its global business. The organization is now waking up and that doesn't happen overnight." RUBIS is now undergoing a full rebranding of Texaco outlets in the country. By the third quarter, Gill said the stations will be transformed with new colors, signage and logos.
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