CEO’s Message

 

The FSM Petroleum Corporation is the newest State Owned Corporation in the FSM. It was formed in 2008 to ensure continued access to, and on-going availability of petroleum products to meet the core energy needs of a growing modern Island economy.

We acquired the terminal facilities of Mobil Oil Micronesia Incorporated (MOMI) in the States of Chuuk, Yap, and Pohnpei in 2008, and in 2009 assumed operations in Kosrae and Yap Aviation, finally achieving the Leaders’ Vision for a united position.

We assumed an operation that had over 50 years of good cash and operational performance. We have implemented a balanced scorecard that provides equal attention to the commercial performance of the business as well as our role in providing core energy infrastructure and an essential public good.

This change has led to significant benefits to customers and our local communities. Since commencement of operations we have continued to prove that we can and will deliver in excess of our stakeholders’ and Leaders’ expectations.

The Company has Technical Service Agreements and a Product Supply Agreement with Mobil Oil Guam Incorporated, and therefore has a secure source of quality products and services for its requirements. We are also a distributor of TOTAL lubricants. This ensures that we are adequately supported to meet the diverse needs of customers in the Marine, Aviation, Retail and Commercial business sectors. Our continued growth and long-term viability depends on all of us embracing the ethical shared values and principles that motivate and guide our day-to-day undertakings. Expressed in our Statement of General Business Principles, these values are critical to the success of a company like ours.

Our ethical commitment is based on four core values:

---

• Respect, the source of sustainable, trust-based operations and relations.
• Integrity of our people, at work and in our everyday lives.
• Honesty, which underpins the internal and external credibility of our actions and initiatives.
• Accountability, being liable, answerable, and committed, instilling trust amongst the team.

For these ethical values to have a meaningful impact, they have to be expressed through a certain number of business principles applied in our sphere of activity—upholding human rights, an ongoing concern with safety and environmental protection, respect for everyone we work with, integrity towards the company and in our business relationships, non-interference in political processes, and support for colleagues, host communities and business partners.

In every operating unit, management is responsible for instilling these ethical values and ensuring that the corresponding principles are applied.

It is now the Vital Group’s tenth year since operations commenced, and it is only by continuing to commit to these fundamental principles that we will continue to be strong, support sustainable growth and benefit everyone.

I know I can rely on each and every one of you to apply the Code of Conduct appropriately in your day-to-day work.

Jared C. Morris
Chief Executive Officer