11Plc raises hope on downstream deregulation
Major oil marketer, 11Plc (Former Mobil Oil Nigeria) has expressed optimist that the outlook for the year 2023 would be brighter owing to positive expectations from full implementation of the Petroleum Industry Act (PIA) as well as deregulation of the downstream sub-sector, which is scheduled to take off by June 2023.
Chairman, Board of Director, Ramesh Kansagra, who disclosed this at the company’s 45th Annual General Meeting held at Abuja, said: “The activities in Nigeria’s downstream sector in 2023 are expected to come from the full implementation of the Petroleum Industry Act as deregulation is scheduled to take off by June 2023. The success of the implementation process will depend on proper planning and implementation.
“Indeed, Nigeria has been predicted to be a market to watch this year because of the proposed opening of a major refinery, the change in government, and the strategic decision that must be made on ending fuel subsidies.
“In order to keep the company on the path of sustainability, we are committed to the continued upgrade of our facilities. Our investment in Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) will be sustained and expected to impact positively on our bottom line at the end of the year,” he stated.
Kansagra, who was represented by Non -Executive Director, Alhaji Abdulkadir Aminu Mamman, said that the International Monetary Fund (IMF) had projected that one-third of the global economy will be in recession this year, while overall, global growth is forecast to decline from 3.2 percent in 2022 to 2.7 percent in 2023 while inflation will trend upwards.
He said that the company would strive to weather the storm as the year progresses.
He said that the employees are the company’s greatest assets. “We are committed to ensuring the right level of employee engagement and motivation abound within our company. The well-being and safety of our employees remain a key focus for us. I commend their commitment and hard work, which impacted positively on the company’s performance.
Noting that the prevailing labour migration across the globe with attendant employee turnover would continue to pose a human capital challenge, he said: “We believe that the incoming government’s policies will create opportunities for local talents that will help stem the brain drain. In spite of the dire economic outlook, the future holds great promises for our dear company, as we consolidate our achievements,”
He said the Board of Directors has recommended a dividend pay-out of N3 billion translating into N8.50K per ordinary share of 50 kobo each, payable subject to shareholders’ approval and deduction of withholding tax at the prevailing rate.
“The dividend payout of 850k per share under the current difficult business circumstances shows the company’s commitment to positive return on investment to its shareholders. The Board is committed to continually deliver outstanding returns to our shareholders,” he stated.
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.