NIPCO explains improved performance in 2016
The Group Managing Director (GMD), NIPCO Plc, Venkataraman Venkatapathy, has attributed the improved performance of the company in the 2016 financial year to increased sales drive, effective management of resources and adjustment of business model to the changing market variables.
“Year 2016 has remained a very challenging period in the annals of petroleum products marketing in the country with the mirage of issues plaguing the sector amidst the general economic recession announced by the Federal Government,” the GMD noted
NIPCO Plc had a turnover of N170.504 billion for the year ended December 31, 2016, against N114.724 billion recorded in the corresponding period of 2015, representing an increase of 48 per cent
Profit before tax rose marginally from N2.014 billion in 2015, to N2.031 billion in 2016. Similarly, profit after tax jumped from N1, 419 billion to N1, 603 billion in the same period.
Speaking on the sidelines of the company’s annual general meeting held in Abuja, Venkatapathy said although the year was tough on the economy, NIPCO made spirited efforts to reduce the impact on its customers without having any negative effect on shareholders’ return on investment.
“We prepared ceaselessly for the expected harsh operating environment by focusing on effective management of resources with a special focus on cost containment without jeopardizing quality in our entire operations,” he noted
The GMD noted that the company placed a lot of premium on its workforce as the most precious and valued asset adding that they were able to key into management directives on the growth pattern of the organisation.
He recalled that NIPCO took the entire industry by storm in October 2016, with the announcement of the acquisition of ExxonMobil’s 60 per cent equity, in Mobil Oil Nigeria Plc, which had remained a major turning point in the history of the organization and the industry at large.
According to him, the deal was not only a monumental achievement but also a feat that put the downstream major in the forefront of the industry and a justification of the confidence NIPCO has in the Nigerian economy.
Earlier, the shareholders had approve a dividend payout of N563.004 million translating to 300k per share for the year ended December 31, 2016, as proposed by the board of directors .
The Chairman of NIPCO Plc, Chief Bestman Anekwe, told the shareholders that the results demonstrate the aggressive sustenance of the inroads the company had made in the downstream sector of the nation’s oil industry.