Petroleum is a finite product with seemingly infinite demand. It is a necessity, and diesel is the product which, almost singularly, drives the South African economy.
Cardinal’s main product focus is diesel. To put the size of the market and the viability of Cardinal’s model into perspective, according to the South African Department of Energy’s consumption statistics, more than 27bn litres of liquid fuel energy was consumed in South Africa between the period January – December 2012. Of total consumption, approximately 42% was attributable to diesel sales.
Cardinal management believes that its investment portfolio will escalate substantially in capital value, and provide a safe haven for investors seeking a low to moderate risk investment environment, security, longevity of investment, and consistent cash flows. Real estate provides the comfort and security of tangible net asset value, underpinning the trading cash flows and the investment model.
Investors are seeking high quality returns globally, and Cardinal intends delivering these returns, together with capital growth.