Despite the challenges in the downstream sector in the 2017 financial year, NIPCO Plc has expressed optimism about meaningful growth opportunities in petroleum products marketing to improve investor’s returns.
Speaking on the sidelines of the company’s 14th Annual General Meeting (AGM) in Abuja, the Managing Director, Sanjay Teotia, said in spite of the numerous challenges, the company exhibited utmost capacity to surmount the difficult times.
NIPCO’s turnover for the 2017 financial year grew by 35 per cent from N170 billion in 2016 to N207 billion, profit after tax rose from N1.8 billion in 2016 to N2.1 billion in 2017.
The board recommended a cash dividend of 300 kobo amounting to total dividend payout of N563 million which was approved by the shareholders.
The MD noted that the main challenge with the downstream sector of the Nigeria’s oil and gas industry stemmed from the lack of marketing margins for PMS due to pricing surge in the international market and the commitment of government to the populace by maintain a price cap across the nation for petrol.
According to him, despite the headwinds in the sector, NIPCO management continued to place emphasis in transforming the company’s systems and processes to deliver exceptional value to its stakeholders.
“As investors of this great company, you are ranked very high on the list of our stakeholders, hence the resolve of the company to make yearly payment of good dividend to our shareholders,” he told shareholders.
The MD noted that in order to remain ahead of its peers, the management is not only improving on its core competencies but also exploiting other business ventures and opportunities.
“Management shall remain focused on pursuing its major targets inclusive of : growing the company’s market share in petroleum markets marketing, giving more visibility to NIPCO stations and ensuring friendly customer care across the organisation’s business lines,” he stated.
Mr Sanjay expressed the company’s resolve to continue to align with government in providing access to LPG as cooking fuel at affordable rates, stressing that the technical commissioning of the largest sphere in Africa by the company in 2017 is a pointer to the organisation resolve to deepen domestic gas utilisation
“Our gas stations remains first choice outlets as consumers are assured of clean energy for cooking at the right quality ,quantity at very competitive rates,” he said.
The MD noted that this feat was also acknowledged by the National Association of LPG Marketers (NALPGAM) who gave an award to NIPCO as the 2017 best LPG marketing company of the year.
The NIPCO helmsman said the company is upbeat of improved performance taking into consideration the organization highly motivated and skilled employees as well as excellent customer service delivery across its business lines.
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