Interview with Hiriyanna Narayanaswamy, Chief Financial Officer of Al Maha Petroleum Products Marketing Company

Muscat – In this interview, Hiriyanna Narayanaswamy, Chief Financial Officer of Al Maha Petroleum Products Marketing Company, discusses the key drivers of business transformation in the oil marketing sector, including energy transition, economic diversification, and digitalisation. He also shares insights on the role of emerging technologies in finance function, the industry’s financial risks, and offers advice for aspiring CFOs in Oman.

What are the key drivers of business transformation in the oil marketing sector, and how does the finance function contribute to this transformation?

The downstream oil marketing sector is undergoing significant transformation, driven by three main factors: energy transition, economic diversification, and digitalisation.

The energy transition is at the forefront of this change. The global shift towards renewable energy and carbon neutrality is reshaping the traditional oil marketing business. Companies are increasingly investing in cleaner fuels, alternative energy sources, and reducing their carbon footprints across the supply chain. Oman is committed to achieving net-zero carbon emissions by 2050, with growing opportunities in green investments.

Regarding economic diversification, Oman’s economy has historically relied on oil revenues, but the drive towards diversification is presenting both challenges and opportunities. While navigating oil price volatility, it’s crucial to explore participation in growing non-oil sectors such as tourism, logistics, manufacturing, and technology.

Global trends in digitalisation are also reshaping the sector. Implementing new technologies such as AI, automation, and data analytics is essential for staying competitive, but it requires significant investment and focus on addressing concerns around cybersecurity.

The finance function plays a key role in driving these changes, acting as a ‘strategic enabler’. Finance ensures that investments, innovations, and operations align with the organisation’s long-term vision for sustainable growth and resilience in this rapidly changing energy landscape. As sustainability becomes a core focus, the finance function will also ensure transparent reporting and accurate tracking of Environmental, Social and Governance (ESG) metrics, building trust with stakeholders and investors.

How are emerging tech, such as AI, transforming the finance function in your organisation, and what challenges do you face in integrating these technologies?

Emerging technologies, particularly artificial intelligence (AI) and business intelligence (BI) tools, are revolutionising the finance function by improving accuracy, efficiency, and strategic decision-making.

These advancements are transforming finance from a ‘traditional support function’ to a ‘strategic enabler of business growth’. For example, Robotic Process Automation (RPA), combined with AI, automates repetitive tasks such as invoice processing, reconciliation, and financial reporting. This allows the finance team to focus on more value-added activities like strategic planning and advisory roles.

AI-powered tools enable us to analyse vast amounts of financial and operational data, improving the accuracy of forecasting and scenario planning. Predictive analytics help us identify market trends, demand shifts, and cost-saving opportunities with greater precision.

Machine learning models optimise resource allocation by analysing historical spending patterns and projected needs, ensuring that budgets are used efficiently.

Furthermore, AI-driven dashboards and visualisation tools provide real-time insights into key financial metrics, facilitating proactive decision-making. Advanced algorithms are also being used for fraud detection and compliance monitoring, minimising risks and ensuring regulatory compliance.

The integration of AI and other technologies into the finance function is an ongoing journey that requires careful strategic planning and operational commitment. While challenges remain, the long-term benefits – such as improved efficiency, deeper insights, and better decision-making – far outweigh the obstacles. Our organisation is committed to leveraging these innovations to remain competitive in a rapidly evolving market.

What are the key financial risks and challenges in the oil marketing industry, and how do you mitigate them?

Oil marketing companies often operate in a challenging risk environment. Although fossil fuels are expected to remain the dominant source of energy for the foreseeable future, renewable energy is projected to account for the majority of energy growth. As demand for renewable energy increases, oil and gas companies may need to adjust their investments to align with carbon-neutral and climate-related goals.

On the pricing front, global crude oil prices are highly volatile, subject to frequent and unpredictable fluctuations due to geopolitical tensions, supply-demand imbalances, and macroeconomic factors. This volatility impacts procurement costs, pricing strategies, and profit margins. Additionally, climate regulations, subsidy reforms, and taxation policies can significantly affect pricing structures, operating costs, and overall profitability.

Other challenges include economic slowdowns, the rise of alternative energy, and shifting consumer behaviour, all of which contribute to demand uncertainty and can affect sales and revenue.

To mitigate these risks, we have implemented several strategies. Expanding into non-fuel businesses, such as convenience stores and lubricant sales, helps offset the risks associated with fuel price fluctuations. Investing in renewable energy projects ensures we remain relevant in the energy transition. Understanding and adhering to regulations, while collaborating with policymakers on the role of the industry in new energy initiatives, further helps mitigate risks.

Furthermore, maintaining a balanced capital structure through prudent debt management supports liquidity during difficult periods. By remaining agile and forward-thinking, we aim to drive sustainable growth in a rapidly evolving energy landscape.

What advice would you give to aspiring CFOs in Oman? What should be their key focus areas?

Aspiring CFOs in Oman have a unique opportunity to influence the future of finance in the region. To succeed, they must focus on continuous learning, embracing technology, and developing strong strategic and leadership skills. Future CFOs will need to excel not only in financial expertise but also in driving innovation, sustainability, and business growth within their organisations.

My advice to aspiring CFOs in Oman would be to master the fundamentals of finance, including accounting, financial planning, treasury, risk management, regulatory compliance, and tax laws – particularly within Oman’s evolving economic landscape. Pursuing certifications such as CFA, CMA, or CPA will also help enhance their technical knowledge and credibility.

Strategic thinking is essential. The role of the CFO is not just about managing numbers; it’s about aligning financial strategies with broader business goals. Aspiring CFOs should develop the ability to anticipate market trends, identify growth opportunities, and influence business decisions.

In addition, leadership and collaboration skills are crucial. Being able to work effectively with diverse teams, communicate clearly with stakeholders, and inspire confidence across the organisation is key. Building a strong network with peers, mentors, and industry leaders can provide valuable insights, opportunities, and guidance. Engaging with forums, industry associations, and local finance communities in Oman will help aspiring CFOs stay informed and connected.

What skills will be essential for future CFOs?

The essential skills for future CFOs will include technological proficiency in areas such as AI, data analytics, and ERP systems. Adaptability and agility will also be crucial, as CFOs will need to adjust strategies quickly in response to changing circumstances.

Strategic leadership will be key in navigating periods of uncertainty, ensuring resilience and growth. Strong communication skills are essential for influencing decisions at the C-suite level, building consensus, and maintaining financial discipline across the organisation.

Future CFOs must also develop a global mindset. Understanding international markets, cross-border regulations, and global economic trends will be critical. In addition, team-building and leadership will be vital. Future CFOs will be responsible for building and leading high-performing finance teams. Mentoring, coaching, and fostering an innovative culture will be important for attracting and retaining top talent.

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