Exclusive Interview with Mrs Sarah Romain, CEO of SEYPEC

Sarah Romain, SEYPEC has just announced a net profit of USD 29 million before tax and dividend. Don’t you believe that these profits should be used to lower pump prices and ease the financial burden on consumers?

I fully understand why this question is being raised, and I appreciate the public’s concerns regarding fuel prices. However, while the company has recorded strong financial performance, it is important to clarify that these profits are not just sitting in a bank account, waiting to be distributed.  As the sole importer of fuel and LPG in the country, our company has a critical responsibility to ensure energy security. This means maintaining sufficient reserves, upgrading and replacing aging infrastructure, and modernizing our operations to continue delivering high-quality, reliable service. Fuel importation and distribution require significant investment in storage facilities, pipelines, distribution networks, and safety measures. Furthermore, as we operate independently of the national budget, our profits help to fund critical projects, such as the renewal of our tanker fleet, the construction and commissioning of new petrol stations, and the refurbishment of existing facilities—all of which are fully financed by SEYPEC. If we fail to reinvest in these essential areas, we risk operational inefficiencies, supply disruptions, and ultimately, higher costs in the long run. It is well established that a company must maintain financial stability to operate efficiently. If we were to reduce fuel prices beyond sustainable levels, we risk incurring losses that could ultimately force us to seek financial assistance from the government—an outcome we have deliberately avoided since our inception. Our ability to remain self-sufficient, without relying on taxpayer funding, is a key achievement that we are committed to preserving. Moreover, SEYPEC plays a crucial role in supporting national affordability measures. We ensure that the price of LPG remains accessible to domestic consumers, maintaining it at SCR 17.50 per kilogram, despite the fact that our actual cost is significantly higher. Additionally, we contribute to support public transport by providing fuel to the Seychelles Public Transport Corporation (SPTC) at a subsidized rate. We also absorb substantial logistical costs to ensure price uniformity across the country. Despite the high transportation and handling expenses, we sell our products on Praslin and La Digue at the same prices as on Mahé, ensuring fair access to fuel for all residents. Our financial prudence and strategic reinvestments not only sustain our operations but also contribute to the long-term resilience and development of the country's energy sector.

Are you satisfied about the price fixing mechanism of fuel products for local consumers?

Fuel prices depend on global oil prices, shipping costs, exchange rates, and national taxation policies. Any adjustments must be made within this broader economic framework to ensure long-term stability rather than short-term populist decisions that could harm the industry and economy. Our goal is to strike a balance: ensuring fair pricing for consumers while securing the long-term viability of the company. Instead of unsustainable price cuts, our profits allow us to invest in efficiency improvements, potential future price stability, and maintaining a resilient energy supply for the country. We are committed to transparency and responsible financial management, ensuring that today’s success translates into future security for all. At SEYPEC, The Board and The Management are always reinforcing the company's commitment to financial stability, responsible reinvestment, and long-term sustainability. This is why we are adamant on the issue of responsible national energy security policy rather than on one based on short-term price relief which would ultimately prove very costly.

SEYPEC plays a crucial role in Seychelles’ energy security. One of the key areas of growth has been diversification. Can you elaborate?

Absolutely. In 2001, SEYPEC took a strategic step by investing in tanker ownership, allowing Seychelles to have a presence in global shipping while generating revenue beyond local fuel sales. Our fleet carries the Seychellois flag across international waters, reinforcing our role in the regional and global energy supply chain. Beyond economic benefits, this initiative has provided invaluable career opportunities for Seychellois seafarers—over 300 have been trained, contributing to a highly skilled maritime workforce that represents Seychelles internationally. The tanker business remains a major revenue source for SEYPEC, with its proceeds in foreign exchange, strengthening our financial sustainability.

SEYPEC is also recognized for its commitment to a 100% Seychellois workforce. What does this signify for the company and the nation?

This is something we take immense pride in. SEYPEC is not just a company—it’s a national entity that fosters local talent. Today, we have 231 onshore employees across our depot and various departments. Remarkably, 56% of our employees have been with us for over five years, and 40% have dedicated at least a decade to SEYPEC. Our 93% staff retention rate is a testament to the loyalty and dedication of our workforce. Many of our employees have climbed the corporate ladder, from entry-level positions to managerial roles, demonstrating that SEYPEC is a place where careers flourish.

How has the company ensured continuous improvement of its high-quality standards?

Quality and sustainability are at the heart of our operations. Over the years, we have progressively introduced cleaner fuels to support environmental protection and energy efficiency. For example, LPG replaced kerosene as the primary cooking fuel, offering a safer and more efficient alternative. We also eliminated leaded fuel and introduced lower sulphur diesel, significantly reducing harmful emissions. All our petroleum products adhere to ISO 8217 standards, ensuring that Seychelles benefits from high-grade, environmentally responsible fuels.

Security is also a critical aspect of your operations. What measures have been implemented to ensure the safety of your assets and personnel?

Security and safety are non-negotiable priorities for us. We have invested in state-of-the-art firefighting and security systems to safeguard our infrastructure. Our storage tanks and depots are equipped with advanced fire suppression technology, including a high-capacity foam pumper that ensures rapid response in case of emergencies. Additionally, all SEYPEC petrol stations and premises benefit from robust surveillance and physical security measures. Our well-trained security personnel work tirelessly to enforce safety protocols and prevent unauthorized access, ensuring that our operations run smoothly and securely.

How does SEYPEC promotes the principles of good governance?

In 2023, we took significant steps to enhance our governance framework by establishing two key departments: Legal, Risk & Compliance, and Internal Audit. These departments play a crucial role in strengthening our regulatory compliance, risk management, and financial integrity. Additionally, SEYPEC ensures timely submission of its Financial Results and Annual Report, fully adhering to the guidelines set by the Public Enterprise Monitoring Commission (PEMC). These initiatives reflect our unwavering commitment to transparency, accountability, and ethical business practices.

 What are some of the key issues SEYPEC must navigate today?

Operating in the energy sector comes with its fair share of challenges.

First there are the social challenges. One of the pressing issues in Seychelles today is the rise in social ills, particularly drug and alcohol abuse. These problems can impact workplace productivity and safety, which is why SEYPEC is one of the rare companies in the country with a fully dedicated Wellness Department managed by professionals. We are committed to ensuring a disciplined, skilled, and fit workforce. Another challenge is the reality of Global Geopolitical & Market Risks. As a small island nation reliant on fuel imports, we are vulnerable to global geopolitical tensions, market volatility, and supply chain disruptions. Wars, trade restrictions, and rising compliance costs for shipping put financial pressure on our operations. To remain competitive, we continuously monitor global trends and make strategic decisions to mitigate these risks. Then there are the safety risks due to location. Unlike larger countries where fuel storage facilities are located in isolated areas, SEYPEC’s main infrastructure is in Victoria, surrounded by other businesses. This proximity increases safety risks, requiring us to be extra vigilant. We continuously enhance safety protocols and work closely with authorities to mitigate potential hazards. Despite these challenges, SEYPEC remains committed to ensuring energy security, operational excellence, and sustainable growth for Seychelles. Our 40th anniversary is not just a milestone—it’s a reaffirmation of our dedication to the people and the nation.