Business

Mobil Oil increases profit by 67 per cent

Mobil Oil Nigeria Plc has recorded a profit after tax of N8.15 billion in 2016, representing a 67 per cent increase from the N4.87 billion earned in 2015.

The Chairman/Managing Director of the company, Adetunji Oyebanji, who made this disclosure during Mobil’s yearly generally meeting in Lagos recently, attributed the increase to improved product margins and increased rental income from investment properties.

He noted that the efficiency of the company’s blending operations was enhanced through its investment in a viscosity index improver for the blending of additives for the high volume lubricants.

Oyebanji said: “Our premium blend continuous to differentiate us from the competition, attracting the patronage of customers. We continue to grow our lubricant volume through strategic partnership, deriving benefits from initiatives such as Mobil for Mechanics Training (MMT) Programme. We also recorded a significant expansion in our retail business through the addition of 34 dealers owned and operated sites and 14 reseller business to our chain.”

He disclosed that the company has further enhanced the value of its property investments by completing the refurbishment of Mobil House in 2016.

Speaking on the future prospect of the company, Oyebanji disclosed that the share sale between ExxonMobil and Nipco Plc is expected to be completed by the first half of 2017.

He added that ExxonMobil and Mobil Oil are expected to enter into a 10 years lubricant blending and distribution agreement where Mobil Oil will become the Mobil lubes branded distributor in Nigeria, and will manufacture and market Mobil lubricant in the country.

He added that there would also be a five-year brand free agreement.

Oyebanji stated: “With this development, ExxonMobil has changed its way of doing business in downstream in Nigeria. Through these arrangements, the proud, historic presence of the Mobil brand, with roots going back for more than a century, will continue as we remain focused on growing the sales of our products and enhancing the value of our property investment.”

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