NIPCO Plc, an integrated oil and gas company efforts to popularise the utilisation of natural gas in the country is yielding results as the company has successfully converted 4000 vehicles from fuel to gas.
It hope to aggressive drive the process so that more people would key into the process in nearest future with it planned expansion across the country.
The Federal Government has been driving the gas utilisatiion efforts because of the tremendous benefit associated with such project.
Speaking at the company’s 12th Annual General Meeting(AGM),its chairman, Bestman P. Anekwe pointed out that the impressive increase in patronage of natural gas from industries is evident as more of them are converting to compressed Natural Gas(CNG)to power their plants adding that the surge is gathering momentum and the company would stop until appreciable number of vehicles in Nigeria runs on Natural gas .
He explained that the company foray into the Compressed Natural Gas Market in a Joint Venture with Nigerian Gas Company [NGC] has continued to grow with over 4,000 vehicles currently running on gas.
At the meeting the company he also declared that a turnover of about =N=115Billion and a profit after tax of =N=1.4 billion was realised in the fiscal year 2015 in spite of the plethora of challenges in the industry during the period.
He maintained that the company’s turnover was moderate enough considering the prevailing difficult environment in 2015, saying that the 2015 performance shows a 20% decline in turnover from the 2014 figures of N145billion while the profit after tax dipped by 30% from N2.314 to N1.419 billion in 2015.
He however, assured that the company is well prepared to weather this rather grim period in the industry as Management will not rest in achieving superior shareholders value in the industry in line with the Board’s long standing policy exceeding shareholders expectations”
The Board of Directors is proposing a total dividend of =N= 563 million translating into 300k per share from the profit after tax while Management has retained the sum of N1.2billion as retained profit to strengthen its working capital requirement.
Giving an outline of the company’s focus in the financial year, the chairman said it will continue to build an integrated petroleum company that would fit better into the energy reforms of the government while delivering greater value to both our customers and the shareholders.
According to him the retail division has continued to grow increasing its stake in petroleum products sale at its branded stations across the country couple with the upscale remodelling of all the retail outlets which it undertook in the previous year and which is still ongoing.
“Our knack for service delivery ensured that all the retail outlets remained wet with products irrespective of the prevailing difficulties in the industry”, Chief Anekwe asserted
He explained that the company foray into the Compressed Natural Gas Market in a Joint Venture with Nigerian Gas Company [NGC] has continued to grow with over 4,000 vehicles currently running on gas.
OLUSOLA BELLO
