11Plc (formerly Mobil Oil Nigeria Plc) has restated its ambitious move to expand its market share of the Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) segment.
Managing Director and Chief Executive Officer, 11Plc, Adetunji Oyebanji, who made this commitment at the Annual General Meeting (AGM) held at Abuja Continental Hotel, FCT Abuja, said the company is taking steps to position itself in the gas sector.
“Our LPG is growing fast with the deployment of more skids in the company’s retail outlets as well as the collocation of CNG outlets in the stations,” he stated.
According to him, substantial financial commitment has been made in this respect, which in turn has resulted in significant improvements in all areas of the company’s operations.
Oyebanji said seven years after the takeover of a 60 percent equity stake of ExxonMobil in former Mobil Oil of Nigeria by NIPCO Plc, the parent company had made significant investments in its facilities to increase productivity and meet market demands.
He said, “We remain optimistic about a brighter future for the company and the resilience of the nation’s economy. We hope to build on the current momentum predicted on better management of the company as professed by the new leadership. Our integrated business model coupled with the sound financial measures being adopted across our business lines give us hope for brighter outlooks in the ongoing transformation of 11Plc.
“With our projections coming to fruition, we look forward to bigger and more powerful projects coming on stream which would undoubtedly boost the company’s bottom line. Nigeria’s hydrocarbon industry, especially in the downstream sector, will continue to benefit from our brand for value addition and sustenance of nobler legacies,” he stated.
Rolling out the financial results, he said the company recorded a turnover of N526.538 billion and a profit after tax of N26.568 billion in the financial year 2023, representing a 42 percent and 45 percent increase over 2022 reports.
Chairman of the company, Ramesh Kansagra who was represented by Non-Executive Director, Alhaji Abdilkadir Aminu said the company made significant progress in the year by exploring the Compressed Natural Gas (CNG) market and constructing facilities in Ibadan and Lagos.
“Additionally, the company installed Liquefied Petroleum Gas (LPG) skids in 40 outlets nationwide to invest in the future of LPG. These investments have helped the company to improve its assets and resources to deliver on shareholder commitments.
“11 Plc remains committed to the highest standards of ethics, safety, health, and environmental practices while promoting best practices in Nigeria’s downstream oil and gas sector. The company’s management framework is robust, and its business model is continually resilient to harness endless opportunities,” he stated.
Kasangra said the Board of Directors has recommended a robust dividend payout of N3,245,357,349 equivalent to 900kobo per ordinary share of 50 Kobo each, subject to shareholders approval and withholding tax deductions at the prevailing rate which was unanimously approved by shareholders.
“We are confident in our ability to continue delivering growth to our shareholders’ investments, and this dividend reaffirms our commitment to that promise,” he stated.
Kasangra further revealed that Mobil Producing Nigeria Unlimited, its primary tenant, is scheduled to vacate Mobil House in 2024, adding that the loss of their tenancy will significantly diminish its other sources of income.
“Nevertheless, our company is prepared to navigate the changes and is committed to sustainability and operational efficiency to overcome challenges and facilitate growth. We will also continue to monitor the market trends and modify pricing strategies to meet the needs of our shareholders and customers,” he stated.