Mobil Oil Nigeria Plc. has continued to record decline in its operational financials, with its turnover decreasing by 19 per cent and profit after tax by 24 per cent.
Specifically, the company’s turnover declined from N78.74 billion it recorded in the previous year to N64.2 billion in the year under review.
The Chairman/Managing Director, Adetunji Oyebanji, who made this disclosure during the company’s yearly general meeting, put the profit after tax at N4.9 billion.
“However, if the one-off surplus property disposal in 2014 is excluded, then profit after tax from operating activities rose by 27 per cent.
This was a very pleasing performance in the circumstances. Our results continue to be adversely impacted by the government controlled fixed margin on gasoline and kerosene”, he told shareholders.
Oyebanji further disclosed that the company has invested in retail chains, which comprise of tank and pump replacements as well as some service stations’ facelifts.
He added that significant investments were made in the company’s dealers in dealer-owned and operated sites, company’s commitment to investing in the lube oil blending plant with the provision of additional tanks for bulk additives and has embarked on a filling-line-automation and upgrade.
Oyebanji stated: “Mobil Nigeria Plc won the award for lubricant company of the year 2015 at the 10th Nigeria Auto Awards. Also, our Mobil lubricants were adjudged ‘best value for money’ in the motor oil category by ICERTIAS Best Awards. Our lubricant product lines continue to perform strongly, supported by a brand and quality image, which leads the market.
“Property rental income increased following the completion of the upgrade of Mobil Court. Some upgrades are also being made in Mobil House office building and these are expected to be completed in 2016.
“In accordance with our tradition of delivering shareholders returns that are competitive and superior in long-term-value, the board is pleased to recommend for approval a dividend of 720 kobo per 50 kobo share, subject to deduction of withholding taxes at applicable rates.
The recommended dividend represents an increase of nine per cent over prior year”.
Dwelling on the Nigeria’s business environment, he said that delay in reforms of the downstream petroleum industry sector remains a concern for operators as business continues to be challenged by products supply, margins on regulated products and the operating environment.
He stated: “In 2015, political activities took centre stage and elections were held which resulted in change in government. This was a significant event and an important step in consolidating democracy. At the same time, crude oil prices fell significantly which impacted government revenues and the availability of foreign exchange. This created many challenges for companies in the manufacturing sector”.
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