The Nation Newspaper

Tag: Mobil Oil

  • NSE indices up by 0.04%

    Key indicators of performance at the Nigerian Stock Exchange ( NSE ) closed on Tuesday with a marginal growth of 0.04 per cent.

    The market capitalisation increased by N6 billion or 0.04 per cent to close at N15.408 trillion compared with the N15.402 trillion recorded on Monday.

    Similarly, the All-Share Index, which opened at 43,056.51, rose by 16.94 points or 0.04 per cent to close at 43,073.45.

    An analysis of the price movement table indicated that Nestle led the gainers’ table, appreciating by N20 to close at N1,400 per share.

    Mobil Oil followed with a gain of N8.70 to close at N183.70, while Dangote Cement recorded a gain of N3.40 to close at N268.40 per share.

    Total added N2.90 to close at N249, while Guinness appreciated by 80k to close at N99.80 per share.

    Analysts attributed the gains to investors taking position by buying shares of the companies for future gain, rather than a reaction to the improved audited results released by some companies so far.

    They said that the results were already discounted resulting to mixed performance being experienced in the market.

    On the other hand, Unilever recorded the highest loss to lead the losers’ chart, dropping by N3 to close at N57.80 per share.

    GlaxosmithKline trailed with a loss of N1.10 to close at N20.90, while Dangote Sugar Refinery depreciated by N1.05 to close at N22.30 per share.

    NASCON declined by N1 to close at N22, while Zenith International Bank shed 55k to close at N30.45 per share.

    Also, the volume of shares traded closed lower with an exchange of 407.96 million shares worth N6.12 billion transacted in 5,247 deals.

    This was in contrast with 831.39 million shares valued at N10.57 billion achieved in 5,651 deals on Monday.

    Zenith Bank was the toast of investors, accounting for 70.26 million shares worth N2.19 billion.

    It was followed by FBN Holdings having accounted for 53.02 million shares valued at N605.31 million, while Mansard Insurance traded 50.36 million shares worth N137.48 million.

    United Bank for Africa exchanged 27.38 million shares valued at N336.15 million, while Skye Bank traded 19.07 million shares worth N16.93 million.

    NAN

  • Major oil stocks plummet on NSE

    Major oil stocks plummet on NSE

    Major oil stocks posted price depreciation on the Nigerian Stock Exchange ( NSE ) on Monday just as the market indices recorded marginal growth of 0.02 per cent.

    Seplat dipped N13.70 to close at N571.40 to lead the losers’ table.

    Total trailed with a loss of N11 to close at N217, while Mobil Oil shed N9.50 to close at N180.50 per share.

    Dangote Cement was down by N1 to close at N259, while United Bank for Africa declined by 45k to close at N12.50 per share.

    Conversely, International Breweries topped the gainers’ table, growing by N2.85 to close at N59.85 per share.

    PZ Industries followed with a gain of N1.15 to close at N24.15, while NASCON appreciated by N1.05 to close at N21.60

    Guaranty Trust Bank advanced by 75k to close at N49.35, while Redstar increased by 30k to close at N6.30 per share.

    Consequently, the All-Share Index rose marginally by 8.59 points or 0.02 per cent to close at 42,579.48 compared with 42,570.89 achieved on Friday.

    Similarly, the market capitalisation which opened at N15.277 trillion rose by three billion naira or 0.02 per cent to close at N15.280 trillion.

    Cement Company of Northern Nigeria was the most active stock, trading 134.89 million shares worth N2.25 billion.

    Transcorp followed with an account of 34.15 million shares valued at N71.04 million, while FBN Holdings traded 21.78 million shares worth N250.07 million.

    Access Bank sold 20.58 million shares valued at N 270.03 million, while Fidelity Bank exchanged 20.49 million shares worth N 61.30 million.

    In all, the volume of shares transacted closed higher as investors bought and sold 384.26 million shares valued at N5.47 billion achieved in 4,774 deals.

    This was in contrast with a turnover of 308.43 million shares worth N6.40 billion exchanged in 4,356 deals.

    NAN

  • Former Mobil Oil boss tasks entrepreneurs on soft skills

    Former Chairman/Chief Executive Officer, Mobil Oil Nigeria, Mr. Olumide Onakoya has challenged aspiring entrepreneurs to develop their innate soft skills for them to succeed in the ever growing competitive market.

    Onakoya spoke at the launching of a new book titled ‘Why school doesn’t guarantee success’ written by Olanrewanju Adepetun.

    Justifying the need for soft skills, the erstwhile Mobil Oil boss said skills such as ethics; integrity, communication, team building, and honesty are not necessarily taught in schools but are panacea for success in life, business and career.

    He said that many graduates and entrepreneurs have either lost their jobs or opportunities to scale through not because they are not brilliant but because they lack soft skills that can keep an individual flying high in life.

    He noted that in the course of his work as the CEO of Mobil Plc, he have had fire first class graduates within one year of their employment not because they are not brilliant but because they lack basic life skills that can keep them on their jobs.

    “My engineering certificate became nothing after 10 years in Mobil where I served for over three decades but my soft skills took me to the top in the company.”

    Onakoya, who is also the CEO of Olu Onakoya and Associates further noted that people with soft skills can be trusted with money and not abuse it treat others with respect and are faithful in their chosen profession.

    “What the new world of business is looking for  are self motivated  people of character who will bring positive values, growth and success to organisation  and is doing so ultimately bring the same to themselves,” he said.

    Speaking during the event, the Executive Secretary, Lagos State Employment Trust Fund (LSETF), Mr. Akintunde Oyebode called for the review of the curriculum of our educational system at all levels in order to expand employment opportunities for youths in Nigeria.

    He lamented that there are new and emerging jobs opportunities available for young people but many youth lack the requisite skills and education that are needed to fit into these new opportunities.

  • Harmonisation of NIPCo, Mobil Oil operations begins

    Harmonisation of NIPCo, Mobil Oil operations begins

    • Mobil retail outlets now II Plc

    With the completion of acquisition of 60 per cent ExxonMobil’s shares in Mobil Oil Nigeria (MON) Plc, following statutory approvals from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), NIPCo Plc has begun harmonising the operations of the two firms.

    Its Group Managing Director, Mr. Venkataraman Venkatapathy, said though each of the entities would  function independently, the management would review the two business models with the intention to synchronise and harmonise their operations.

    Venkatapathy told reporters in Lagos that management would ensure adherence to the Mobil brand, while complying with ExxonMobil’s global standards.

    He said: “NIPCo Plc, an indigenous Nigerian downstream oil and gas company, is pleased to announce the successful acquisition of 60 per cent stake in Mobil Oil Nigeria Plc (MON), following due statutory approvals from the Securities and Exchange Commission and the Nigerian Stock Exchange.

    “With the acquisition now completed, NIPCo will review the two existing business models with intent to synchronise and harmonise their operations.  NIPCo intends ultimately, that each of the entities will remain and function independently.  Running the two entities separately will engender financial and strategic merits.

    “Focus will now be placed on expansion of the retail footprint under the Mobil brand.  Concerted efforts will be deployed towards promoting the Mobil brand of lubricants in Nigeria to ensure that it captures a much larger national market share, whilst ensuring that it continues to retain its pivotal position as the premium lubricant brand in Nigeria.”

    According to him, NIPCo will rigorously sustain and follow Exxon Mobil’s code of conduct, ethos and drive for operational excellence. Mobil Oil Nigeria will now be trading and transacting business with a new name that will be called II Plc (double 1Plc).

    He said NIPCO was delighted to be part of the 41,000 shareholders of Mobil Oil Plc, adding that the acquisition shall usher in stability, prosperity, sustainability and growth. In due course, NIPCo shall, in furtherance of its agreement with ExxonMobil, change the name of Mobil Oil Plc to II Plc while retaining the Mobil logo.

    NIPCO had on October 19, 2016, aquired 60 per cent stake in Mobil Oil Plc, and in March 2017, completed the acquisition of ExxonMobil’s stake in Mobil Oil Nigeria Plc in a deal put at N90 billion and one of the biggest in the downstream sector in recent years.

     

  • How NIPCo acquired 67% equity in Mobil Oil

    How NIPCo acquired 67% equity in Mobil Oil

    Ownership of one of Nigeria’s blue chip companies, Mobil Oil Nigeria (MON) Plc just changed hands with NIPCo acquiring MON’s entire 60 per cent equity holding. NIPCo previously held seven per cent shares of Mobil before the divestment by the American oil giant, thus, bringing NIPCo’s shares in the public quoted oil marketing firm to 67 per cent, it has been learnt.

    The Manager, Media and Communications, Mobil Producing Nigeria Unlimited, Mr. OgeUdeagha, who exclusively spoke to The Nation on the divestment and acquisition deal, said the processes that led to the emergence of NIPCo as the preferred bidder for the acquisition of ExxonMobil’s shares in Mobil Oil was carried out transparently. He also stated that the two firms reached far-reaching agreements especially in protection of the welfare of Mobil Oil Plc workers that would be inherited by NIPCo, adding that the divestment was in line with ExxonMobil’s business plan.

    According to him, the choice of NIPCo was made on a commercial basis considering price, transaction terms, long term strategic perspective and a number of other factors, including its commitment to Mobil Oil Nigeria’s employees.

    He noted that ExxonMobil carefully evaluates opportunities across a wide range of market conditions and only advance projects generating long-term shareholder value. Following these assessments, we sometimes find that it makes greater business sense to divest when the businesses are estimated to have higher value to others. Therefore, this decision is in no way a reflection of our view on the local business climate, financial results or the workforce, he added.

    Udeagha said: “ExxonMobil has reached an agreement with the Nigerian Independent Petroleum Company for the sale of its 60 percent share in its downstream Mobil Oil Nigeria affiliate. Mobil Oil Nigeria is comprised of 250 company-owned and dealer-owned Mobil-branded retail stations, a fuels terminal and a lubricants plant in Apapa, and interests in two aviation fuel joint ventures in Lagos.

    “We have also reached accompanying agreements for the continued import, blending and distribution of Mobil-branded lubricants and marketing of Mobil-branded fuel. These agreements will ensure the continued presence of the Mobil brand in Nigeria and position the brand for future growth.

    “Subject to regulatory approval, change-in-control is anticipated by mid-2017. The Mobil Oil Nigeria Board, Ministry of Petroleum, Nigeria Stock Exchange and other relevant statutory agencies have been notified of the transaction.

    “This share-sale agreement does not involve ExxonMobil’s upstream production operations in Nigeria or lubricant supply to Caterpillar dealer, Mantrac Nigeria.

    “ExxonMobil regularly evaluates its global portfolio of businesses and opportunities for growth, restructuring or divestment depending on fit with strategic business objectives. Mobil Oil Nigeria will be renamed after the sale is completed.

    “It is expected that Mobil Oil Nigeria’s employees will continue to be employed following change-in-control.”

    NIPCo previously was 100 per cent owned and managed by Nigerians. It was actually seen as a central firm owned by independent oil marketers to corporately address common issues but due to management and financial crises, Pure Bond Limited, a Nigerian company owned by Indians bought 60 per cent of the company.

    Currently, Pure Bond owns over 70 per cent equity in NIPCo, The Nation learnt. Other major shareholders in NIPCo include prominent members of Independent Petroleum Marketers Association of Nigeria (IPMAN) such as Executive Director,  Corporate Services, AbdulkadirAminu and BestmanAnekwe, among others. However, the recognised current IPMAN President, Lawson Obasi, it was learnt, has no shares in NIPCo.

  • Total Nigeria vs Mobil Oil Nigeria: Differentials of oil majors

    Total Nigeria vs Mobil Oil Nigeria: Differentials of oil majors

    Total Nigeria Plc and Mobil Oil Nigeria Plc are the two leading quoted downstream companies. Interestingly, they share several similarities. Substantial foreign shareholding, leading industry position, business year and decades of operations among others, they run neck to neck in corporate variables. Besides, both companies were listed in the same year, on the same month and within the same week. The two multinationals also share the same operating challenges as two leading members of Major Oil Marketers Association of Nigerian (MOMAN). As such, they adequately represent the variables in the downstream oil sector.

    A subsidiary of French multinational and Europe-leading oil company-Total S. A, Total Nigeria is a company of considerable influence and size in Nigeria and globally. Total Nigeria leads the capitalisation table as the most capitalised petroleum-marketing company in addition to an enviable position as the highest-priced downstream stock. In the same vein, with more than six decades of operations, Mobil Oil Nigeria holds distinction as the earliest petroleum-marketing company to be incorporated in Nigeria. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America.

    They stand out as the early filers in their sector, the stocks that turn in their audited reports ahead of others. Latest audited reports and accounts of both companies for the year ended December 31, 2012 showed a similar pattern in sales but the differentials lie in cost efficiency. Total Nigeria turned a quarter-growth in sales into equally impressive improvement in profit but Mobil Oil Nigeria lost the strong sales momentum in declining cost efficiency.

     

    Sales Generation

    Available results showed strong top-line performance in 2012. Both Total Nigeria and Mobil Oil Nigeria grew turnover substantially in 2012. Total Nigeria’s turnover rose by 25.2 per cent in 2012 as against modest increase of 8.3 per cent in 2011, pushing two-year average growth to 16.75 per cent. Mobil oil Nigeria topped the sales growth table with an increase of 30 per cent in 2012, pushing its average sales growth to 18.25 per cent. It had grown turnover by 6.4 per cent in 2011.

     

    Profitability

    The decisive performance determinant for the companies is cost management. Total toughened cost management and steadied its underlying profit-making capacity to achieve its best performance in profitability in recent years. Conversely, Mobil lost the steam from the midline to the bottom-line. Total’s gross profit grew by 17 per cent in 2012 as against an increase of 6.6 per cent in 2011, indicating average growth of 11.8 per cent over the years. Profit before tax grew by 21 per cent in 2012, a remarkable improvement on 1.3 per cent recorded in 2011. After taxes, net profit rose by 22.5 per cent in 2012 compared with a drop of 4.0 per cent in previous year. Total’s underlying profitability ratios were steadier with gross and pre-tax margins of 12 per cent and 3.3 per cent in 2012 as against 12.9 per cent and 3.4 per cent respectively in 2011.

    On the other side, Mobil’s outward and underlying profit measures were generally on the negative. While gross profit dropped by 19 per cent in 2012 as against a marginal increase of 4.2 per cent in 2011, pre-tax profit slumped from a drop of 3.4 per cent in 2011 to a loss of 32 per cent in 2012. Profit after tax subsequently worsened from decline of 3.4 per cent in 2011 to a decline of 29.5 per cent in 2012. Margins were generally on the downside. Gross margin slipped from 16 per cent in 2011 to 10 per cent in 2012 while pre-tax profit margin dwindled to 5.1 per cent in 2012 as against 8.9 per cent in 2011. However, Mobil still has higher profit-making capacity on average sale.

     

    Actual Returns

    Returns showed a mixed-grill. While falling faster than its peer, Mobil still has higher returns but Total’s returns were steadier. Total Nigeria’s return on total assets slipped from 10 per cent to 9.3 per cent. Average return on equity meanwhile improved from 38 per cent to 41 per cent, indicating average annual return to shareholders of about 40 per cent.

    Mobil’s return on total assets dropped from 18 per cent in 2011 to 12 per cent in 2012, indicating average return of 15 per cent. Return on equity also dwindled from 55 per cent to 44 per cent, representing average return on equity of 49 per cent in recent years.

     

    The Bottom-line

    With little product differentiation and low margin, turnover growth and cost management make the difference in the performance of downstream oil operators. Where sales become sluggish, the most decisive variable is cost efficiency. The performance outlooks of Total and Mobil aptly reflect this.