Financial Energy Review
…..… N18 billion PAT in 2022 as against N6.08 billion PAT in 2021…..
……..by Ben Ndubuwa…….
The ingenuity and long standing industry experience by the Executive Directors of 11 Plc, (formerly Mobil Oil) led by Dr. Tunji Oyebanji have turned the massive investment by the company’ s new investors into huge profit making downstream company.
The companies new operational facilites in Apapa, Lagos have now set 11 Plc top in the nation’e oil and gas downstream business posting Profit after Tax of 200 percent about N18 billion in the year ended December 2022 as against N6.08 billion in the year 2021.
Explaining to the sharehorders of the company the operating business environment, Oyebanji who was the immediate past chairman of the Major Oil Marketers Association of Nigeria (MOMAN) said “The Russia- Ukraine war, which is now more than a year old, has taken a toll on the Nigerian economy in many ways
“The conflict caused disruptions to the global supply chains as prices of commodities such as crude oil, natural gas, aluminum, nickel, wheat, and other commodities soared to record levels, leaving markets in disarray.
“The price of a litre of diesel skyrocketed to a record high of N600, two weeks into the war, from around N420-N450, as oil prices climbed above $120 a barrel, worsening the inflation outlook in Africa’s biggest economy” he said.
According to him Diesel prices have since risen to above N800 per litre and Nigeria has had to take a wrecking ball to its finances to keep up subsidies on petrol.
“Manufacturers, retail outlets, and small businesses that rely on diesel to power their machines have had to raise the prices of manufactured goods and services, even as consumers grapple with lower purchasing power.
“The Petroleum Industry Act (PIA) also entered its second year of effectiveness and continued its long journey towards implementation. The most notable step was the creation of regulatory bodies for the petroleum upstream, midstream and downstream sectors and the official “relaunch” of The Nigerian National Petroleum Corporation as NNPC Limited in July in a high-profile ceremony led by President Muhammadu Buhari.
Adding that the financial year in view also had the regrettable incident of the importation of adulterated petrol which took a toll on cars and the distribution of products across the country, especially in Lagos and Abuja. In 2022, Nigeria’s oil sector saw significant revenue leakages due to rising activities of crude oil theft as conservative estimates put the total leakages from oil theft and petrol subsidy to over N3.5 billion by the end of 2022″ he said.
Furthermore he noted that despite the daunting challenging environment which 11 Plc operated in the 2022 financial year, the company continued to enjoy a cordial and seamless relationship with ExxonMobil and continues trade under the name Mobil trademark based on the agreement before its exit after the acquisition of the majority stake by NIPCO Investment.
“The new core investor is very bullish about Nigeria and has since stepped up its investment, subsequently raising the profile of our company as the gold standard in the hydrocarbon industry. We have made lots of investments in packaging to eliminate counterfeiting, especially our lubricants.
“The company is also working closely with the Standard Organisation of Nigeria (SON) on the issue of counterfeiting while law enforcement is assiduously working to checkmate perpetrators of this ignoble act” he said.
Oyebaji commended the shareholder. Adding that It was with great pleasure that he welcomed them to the 45th Annual General Meeting of their great company,
“11Plc, which has been growing in leaps and bounds over the years. The event offers a veritable avenue to appreciate the unalloyed support and cooperation of our esteemed shareholders and other stakeholders in the 2022 financial year as well as posit an insight into the future of the company.
“I cannot but agree with our Chairman, Mr. Ramesh Kansagra that the unflinching support of our everreliable shareholders has been the powerhouse of our success. Over the past years, I have had the privilege of leading the management team in translating the Board’s vision into deliverables that have added to shareholder value. I wish to thank the Board for their exemplary leadership that has helped us move the company to its present exalted position on the corporate ladder” he said.
