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Tag: Mobil

  • Why we are involved in fight against malaria, by Mobil

    Mobil Producing Nigeria (MPN) said yesterday that it has donated over N19billion globally to the fight against Malaria, with Nigeria haviing over N3billion.

    The multinational oil firm’s Group Medical Director, Dr. Mohammed Bello spoke in Lagos at the inauguration of the Victoria Island Primary School sick bay donated by the Daniel Ogechi Akujobi Memorial Foundation (DOAMF).

    Bello, who was represented by the firm’s medical doctor,  Effiam Abbah, stated that the donations were received by NGOS, non-NGOs, USAID and roll back malaria, adding that the amount has made Mobil the largest corporate donor to the fight against Malaria in Nigeria.

    He said: “Since 2000, Mobil has contributed more than N19billion globally to NGOs, non NGOs, such as USAID and roll back malaria which made Mobil the largest corporate donor to fight against malaria in Nigeria with over N3billion”

    “We are involved in all aspects of the fight against malaria advocacy, research, development, control, treatment, prevention and education programmes.

    “Our programmes have reached almost 105 billion people, provided over 13 million insecticide treated nets, over two million treatments and over 1.1 million rapid diagnostic tests and has also reached out to over 30,000 pregnant women in our operating communities with services and commodities to prevent and control malaria, ensuring the health of mothers and safety of the unborn child, amongst others.”

    On the sponsoring of the sick bay, Bello said they were approached by the foundation but decided to begin the project at the Victoria Island school premises, which is in their host community.

    Also speaking, DOAMF’s acting Programmes Manager, Ms. Sorochi Ugorji said the foundation embarked on the project as part of its commitment to safer schools.

    She stated that its choice of the primary school that housed four schools with an estimated population of 2000 was sequel to an emergency situation that affected a pupil of the school recently, adding that with the fully equipped facility, pupils can receive first aid before being transferred to hospitals for serious cases.

    She said the establishment was committed to enhancing the education and health of less-privileged children and youths.

    She stated that aside providing the facility and equipping it with drugs and other materials, the foundation has trained health officers, who are members of staff of the schools on basic first aid adminstration.

    Ugorji, also said that the foundation will continue to supply the school with drugs and other materials needed for the well-being of the pupils.

    She said the sick bay, which came with furniture, medical and safety equipment will go a long way to act as a stop gap in mitigating health issues and drastically decrease fatalities that could have been prevented when injuries and illnesses are treated early.

    In his remark, the school principal, Rufai urged the local government to deploy a resident to man the facility, noting that the trained health workers alone, may not be enough.

    At the event were the local government education Inspector for Etiosa, Taiwo Lukman and the local government health officer for Iru|Victoria Island, Dr. Wale Akeredolu, among others.

  • Mobil invests N900m in Geosciences education

    Mobil invests N900m in Geosciences education

    Six universities across the country have benefited from ExxonMobil’s University Partnership Programme (UPP) initiative.

    They are Akwa Ibom State University, Mkpat-Enin; Anambra State University, Ulli; University of Jos; Federal University of Technology, Akure; University of Ilorin; and Federal University of Petroleum Resources, Effurun.

    Each of them received analytical equipment consisting of six Logitech thin section making machines (an important equipment used to carry out detailed study of a rock or mineral), 300 mosquito nets, 24 digital cameras and a cheque of N5.77 million to pay for students’ logistics and lecturers’ field allowances.

    The donation makes it 14 universities to have benefited from the initiative, with a commitment of over N900 million to the initiative to date.

    Before the UPP started in 2007, only three universities had the archaic version of thin section making machine.

    Speaking at the presentation at the headquarters of the National Universities Commission (NUC), Abuja, the General Manager, Operations Technical, Geosciences, ExxonMobil Nigeria, Mr Michael Udoh said Mobil’s UPP and University Assistance Programme (UAP), have birthed investments worth more than N3 billion into geosciences education in Nigerian universities and would continue to invest to ensure that the quality of Nigerian geosciences studies can stand on equal competitive footing with some of the best universities in the world.

    “Ours is a long-term commitment to improving the quality of education in Nigeria, not just in the geosciences, but in the area of Science, Technology, Engineering and Mathematics (STEM) education. We believe that given the desired level of instruction, equipment and support, Nigerians can truly transform our economy to its deserved status as one of the most vibrant and productive in the world and that the best STEM education is the surest way to that destination,” he said.

    Udoh noted that universities enrolled under the UPP initiative are required to prepare a map of the area in their proximity for review and publication by the Nigerian Geological Survey Agency (NGSA).

    “We are pleased with the progress made by these universities in this area, as 12 maps have been published by the NGSA, another four are under review, while another six are being drafted as a result of the various fieldwork trainings and analyses by these universities”, he said.

    Director-General of NGSA, Mr Ndubuisi Nwegbu, said the UPP has created a platform that assists NGSA in fulfilling its mandate of generating, archiving and disseminating geosciences data and information to the public, as the fundamental vehicle through which this is achieved is the geological maps.

    He stressed that it is only by the understanding of the earth that its resources could be meaningfully and sustainably harnessed.  He said the information provided by the maps is useful to investors in the fields of mining, water supply, agriculture, civil engineering, medicine, the environment, among others.

    In a keynote address, the Permanent Secretary, Federal Ministry of Education, Dr. MacJohn Nwaobiala, said the donation gives credence to the fact that sustainable university education in the country is a collective responsibility of government and the private sector, adding that the gesture would not only enhance the teaching and research activities of the benefiting universities, but also portray the organisation as a responsible firm that fulfills its corporate social responsibilities.

    While congratulating the beneficiaries, he urged them to make optimum use of the equipment for the development of the geology programme, while also instituting a proper maintenance culture to enable the equipment endure.

    Also speaking, Executive Secretary of the NUC, Prof Julius Okojie, argued that Nigerian students are as good as other students from other countries and that the quality of education in the country is not declining, as Nigerian professors are sought after in other countries.

    He noted that the NUC would monitor the usage and ensure the equipments are properly maintained, while providing the counterpart funding.

    Okojie appealed to universities to spend the money effectively, noting that structures are not the problem in institutions, as “you can build a structure and not have equipment in them.”

    In his remarks, the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Jonathan Okehs, noted that other landmark achievements had been recorded by the UPP in partnership with various corporations since its inception.

    A geology lecturer at FUTA, Solomon Olabode, said the donation has contributed to smooth learning in the university, adding that the Logitech thin section making machine would enable students generate accurate results and have detailed information about rocks and other minerals, as against the previous manual method in use.

  • MOBIL SCHOOLS SPORTS FINAL GETS MARCH 7 DATE

    MOBIL SCHOOLS SPORTS FINAL GETS MARCH 7 DATE

    The postponed grand finale of the Akwa Ibom State/NNPC/MPN Schools Athletics Championships will now hold on March 7 in the main bowl of the Akwa Ibom International Stadium.

    Paul Bassey, the Consultant to the project told journalists in Uyo on Friday that the final will now hold on  March 7 while the heats and semi finals will be held the day before in the same venue.

    Bassey confirmed that after meeting with the Manager, Government and Public Affairs, QIT Mrs Regina Udobong, the state director of sports coach Aniedi Dickson, Stadium management and the Chairman of Sports coordinators Mr Omon Bassey, “…….we are set to run”

    The final earlier scheduled for February 7 was put off due to the forthcoming elections and the non resumption of schools in Akwa Ibom. “ Now that schools are in session and the elections have been put forward, we have decided to hold the final on March 7 even as we start preparations for the 2015 edition” Bassey said.

    A unique feature of this year’s edition is that the students will be required to report to camp three days before to “acclamatise

    “Unlike previous editions, the 500 students who have qualified for this year’s final from the zones will be required to run, jump and throw in the appropriate athletics gear. It therefore becomes very necessary to get the students acquainted with the use of spike shoes as an example before the final.

    “When we went to the U.J.Esuene Stadium in Calabar in 2013, the students were so awed by the infrastructure. You can imagine what will happen if we drop them in Uyo without introducing them, in advance, to the beauty and splendour of the magnificent edifice, not to talk of getting them to perform therein.

    “These are secondary school boys and girls who have never been to the stadium or the like before and who have spent their time running and jumping with bare feet”

  • Zonal venues accreditted for Mobil school sports

    Zonal venues accreditted for Mobil school sports

    The eight venues that will host the Zonal finals of the 13th AKS/NNPC/MPN Schools Athletics Championships have been accredited and certified “OK”

    In a release made available to the press in Uyo yesterday, the chairman of the Sports Coordinators Forum, Mr Omon Bassey said the eight venues have been approved and they “are ready to go”

    The approved venues are: Abak Zone, Community Secondary School, Ikot Esop, Etim Ekpo LGA, Eket Zone, Eket Stadium, Etinan Zone, Etinan Stadium, Ibiono/Ikono Zone,Ediene Community Secondary School Ikot Ayan,Ikot Abasi Zone,Ukpom Okon Comprehensive Secondary School Okon Town, Ikot Abasi, Ikot Ekpene Zone, State College Ikot Ekpene, Oron Zone,Methodist Boys High School Oron, and Uyo Zone, Comprehensive Secondary School Four Towns.

    At an expanded meeting held last Saturday, officials of the State Ministry of Youth and Sports and their colleagues in the State Secondary Schools sports board deliberated on the hosting of this year’s championship and came to the conclusion that the Zonal finals should be held in the eight sports zones of the state on Thursday November 20 and Friday November 21 2014.

    In doing so, the meeting, chaired by the State Director of Sports Mr Aniedi Dickson, was appreciative of Mobil’s contribution to the development of sports in the state especially at the grassroots level

    Coach Aniedi Dickson added that with the final likely to come off at the ultra modern Akwa Ibom International Stadium, the youths of the state have been given an opportunity to develop their inert talents thanks to the existence of modern equipment and infrastructure.

    The Consultant to the project Mr Paul Bassey urged the Coordinators to ensure a near flawless organization of the zonals to ensure that those who qualify for the finals will not only be bonafide students, but those that will maximize and benefit from the excellent world class infrastructure that has been made available to them by the Dr.Godswill Akpabio Administration.

  • Supreme Court urged to restore appeal against Mobil

    The Supreme Court has been urged to restore an appeal filed by the late Rev Dr. C. J. A. Uwemedimo and his company, Comandclem Nigeria Limited against a decision given in favour of Mobil Producing Nigeria Unlimited, by the Court of Appeal.

    The request is contained in a reply affidavit filed by the appeallnts against an application by Mobil in the appeal numbered : SC 69/2011m

    The appellants, who clamed to be the true and statutory inventor of the Anti-Corrosive Special Paint for Q.I.T. (Transteel Blue, White Enamel) Q.A.D. with a Non-Convention Patent Certificate Number. RP 13522 of 5th August 1999 had been in court with Mobil since year 2000 in an effort to compel the oil company to pay  royalties for the usage of the invention.

    On May 5 this year, the apex court, acting upon a purported notice of withdrawal, dismis the appeal by Uwemedimo and his company.

    They submitted in their fresh affidavit,  that the notice of withdrawal filed on March 24, 2011, which led to the dismissal of the appellants’ appeal was tainted with foul play, fraud and concealment to the lass and damages of the appellants.

    They denied authorizing the filing of the notice of discontinuance. Said their former lawyer, Dr. Tony UUkam, who has also “washed his hands” from the notice, in a letter dated May 16, 2014 was not authorized to file the notice.

    They added that a former official of the 2nd appellant, Comandclem, Monday Akpan, who had since been sacked from the company and who claimed to have knowledge of the notice,  could not have acted legitimately on behalf of the company.

    “It is therefore not a validly filed notice of withdrawal as to constitute an act within the implied authority of the former counsel to the appellants/applicants as counsel conducting the appeal. It is therefore within the province of this court to set aside its ruling made on May 5, 2014 dismissing the appellants/applicants appeal and restore the same in the interest of justice.”

    They argued by virtue  Order 8 Rule 6(5) of the Supreme Court Rules 1985 (as amended), the court has the powers to set aside an order of dismissal made under Order 8 Rule 6(4) of the court’s Rules. They urged the court to exercise its discretion in favour of the appellants/applicants as it will enhance the doing of substantial justice in the case.

    When the case came up on Monday, the court could not entertain any applications, including an oral application by Mobil’s lawyer, Eyimofe Atake (SAN) for an order striking out his client’s cross appeal.

    A five-man panel presided over by Justice Mahmud Mohammed directed that names of parties in the case be amended to reflect the fact that the first appellant was dead.

  • Oil spill in Akwa Ibom

    Oil spill in Akwa Ibom

    An oil spill from Mobil Oil Producing Nigeria, the operator of Qua Iboe Terminal, has affected Nkpana; Inua Eyet Ikot and Esuk Ikim Ekeme communities in Ibeno Local Government Area of Akwa Ibom State.

    The spill reportedly occurred when a thunderstorm caused a fire. The amount of oil lost to the fire and spill hasn’t been calculated.

    The Village Head of Iwuo Okpom, a community in Ibeno, Okon Akpanubong, urged Mobil to begin clean up without delay.

    He appealed to the Federal Government and other relevant agencies to come to the people’s rescue.

    The Coordinator of Artisan Fishermen Association of Nigeria, John Etim, said fishermen are facing hardship because of the spill.

  • One injured as fire raze Mobil station in Lagos

    One injured as fire raze Mobil station in Lagos

    Fire. Service blames fuel scarcity for rising petrol related inferno

    A yet-to-be identified person on Wednesday sustained injury with several vehicles burnt following an inferno that engulfed one of Mobil’s filling stations in Lagos.
    The incident which occurred at about 6:05am, was said to have been caused after an iron that  punctured a tanker laden with 33,000 litres of Premium Motor Spirit (PMS) at Oba Akran.
    Eyewitnesses said the tanker was trying to negotiate its way into the filling station to offload its content but motorists on queue at the station refused to give it passage for fear of being dislodged.
    Having blocked the entrance and with none willing to leave the road for the tanker to get into the station, the motorists were said to have been directing the tanker how to wriggle its way until an iron punctured the tanker and PMS started gushing out.
    When they saw that there was impending disaster, some of them quickly drove off while the unfortunate ones. Including two buses and two cars were razed, said an eyewitness.
    The federal and state Fire Services personnel; National Emergency Management Agency (NEMA) Lagos State Emergency Management Agency (LASEMA) and the Lagos State Ambulance Service (LASAMBUS) were onground on time to contain the situation.
    According to the Director, State Fire Service, Rasaq Fadipe and NEMA’s SouthWest spokesman, Ibrahim Farinloye, the injured man was trapped by an electric pole, which fell as a result of the inferno.
    Farinloye confirmed that two cars and two buses were razed, just as he stated that the fire was put off at about 7:30am with four fire fighting tanks including one belonging to the Manufacturers Association of Nigeria (MAN).
    “A guy of about 25 years, an onlooker, was injured by the pole because the PHCN pole fell on him. He was quickly taken away by LASAMBUS for treatment.
    “We have always warned that except for fire service personnel, everyone else including other emergency stakeholders during fire outbreaks should stay 300metres away.
    “Also, we have appealed to people who have no business in emergency situations to stay off, all these steps are to ensure adequate crowd control as well as avoid situations such as this,” said Fadipe.
    On why there was an upsurge in petrol related infernos in the last two weeks, Fadipe said the situation was not unconnected to fuel scarcity.
    “As a result of fuel scarcity, some people have resorted to storing massive petroleum products even in overhead tanks as was discovered in the case of Christ Embassy Church the Tuesday night.
    “Also, because people know that Mobil always has fuel, that was why they queued there this morning to the point of not allowing the tanker entrance.
    “It is obvious they were too impatient and feared others will take over their lines if they should give thw tanker passage.
    “I want to appeal to Lagosians that in as much as there is scarcity, people should avoid risking their lives.
    “All that is required is patience and everyone will get fuel. People should avoid storing up petroleum products especially large quantities because it is risky.
    “Also, they should endeavour to contact firemen immediately there is an outbreak. If we are called early, we can bring the situation under control without loss of lives and properties,” Fadipe said.

  • Mobil donates to Benue hospital

    Mobil donates to Benue hospital

    Mobil Producing Nigeria (MPN), a Nigerian affiliate of ExxonMobil, and the Nigerian National Petroleum Corporation (NNPC) have donated medical equipment worth N7,734,000 to the General Hospital, Otukpo, Benue State.

    The donation included general health care and maternity care items, power infrastructure support such as stabilisers and UPS systems, and cash for buying of extra equipment for the maternity unit.

    The General Manager, Public and Government Affairs, MPN, Mr Enyinnaya Onokala, said the donation was a demonstration of the commitment of his firm to community development.

    Onokala, who was represented by Ms. Susan Eshett, said.

    “At ExxonMobil, we take our commitment to corporate citizenship very seriously. It’s part of who we are, and how we achieve our business success. Our corporate citizenship programmes place high premium on education, health and capacitybuilding and economic empowerment.

    Benue State Commissioner of Health and aHuman Services, Dr Orduen Abunku while commending MPN and its partners for their generosity, said the equipment would improve the quality of healthcare in the state, adding that patients, who were hitherto referred to other better-equipped medical centres, would now enjoy the best of medical care at the hospital.

  • Tribunal orders Mobil to pay $83.4m to FIRS

    The Tax Appeal Tribunal, Lagos Zone, on Friday ordered Mobil Producing Nigeria Unlimited to pay 83.4 million dollars (N13 billion) education tax to the Federal Inland Revenue Service (FIRS).

    The News Agency of Nigeria reports that the tribunal gave the order while delivering judgment on an appeal filed by the oil company against the FIRS.

    Chairman of the five-man tribunal, Mr. Kayode Sofola (SAN), said the amount represented the company’s education tax liability for 2008.

    The company had instituted the appeal on May 5, 2011 when FIRS issued with it an education tax liability of 83.4 million dollars for 2008.

    The appellant’s counsel, Mr. T. Emuwa, had claimed that the assessment breached an agreement signed by the company with the Federal Government of Nigeria and the Nigerian National Petroleum Corporation (NNPC).

    Emuwa said the Memorandum of Understanding (MoU) was first signed in 1986 and renewed in 2000.

    He said the 2000 MoU allowed the company to deduct all amounts paid to other agencies from the tax due to the federal and state governments

    FIRS had through its counsel, Mrs. B.H. Oniyangi, claimed that the 2000 MoU was signed for a three-year term, adding that its validity ended on January 1, 2003.

    Oniyangi held that the federal government, through a letter issued by the Department of Petroleum Resources (DPR) on January 17, 2008, also confirmed that the MoU had lapsed.

    According to her, the 2000 MoU was replaced by the Petroleum Profits Tax Act (PPTA) which was used to issue the disputed assessment.

    Delivering the judgment, Sofola agreed that the said MoU was only for a three-year term, noting that there was no evidence before the panel that it was renewed.

     

     

  • Mobil: Winning market, losing value

    Mobil Oil Nigeria Plc appears to be in a paradox of winning the market but losing the value. The petroleum-marketing major has reversed the decline in sales that brought its turnover to its lowest in 2010 with significant growth in sales in 2011 and last year. But profit, which had grown consecutively over the previous four years, witnessed a major reversal last year as the company struggled with high costs and poor liquidity.

    Audited report and accounts of Mobil Oil Nigeria for the year ended December 31, 2012 showed 30 per cent increase in sales but pre and post-tax profits dwindled by 32 per cent and 30 per cent respectively. The outward negative bottom-line performance underlined substantial decline in the intrinsic profit-making capacity of the oil major, a situation that was exacerbated by growing financial leverage and worsening liquidity crunch.

    Average profit per unit of sale nearly halved during the year, which also simultaneously, almost on the same scale, affected underlying returns to shareholders and other stakeholders. With 1,850 per cent increase in short-term bank loans, the gearing ratio moved from 0.5 per cent to 6.5 per cent. While the gearing ratio on the basis of overdraft remained somewhat negligible, 80 per cent increase in finance expenses to N299 million, further complicated the top-loaded cost structure of the company. These reduced basic net distributable earnings by about 41 per cent and also lowered the sustainable dividend outlook of the company, in spite of the retention of cash dividend per share at flat rate of N5 for the past two years.

    The combination of declining profitability, worsening liquidity, negative working capital, rising financial leverage and lower cost efficiency overshadowed impressive growth in sales and underlined the need for re-evaluation of the growth strategy of the oil major towards a value-driven approach.

     

    Financing structure

     

    Mobil Oil Nigeria’s paid up capital increased by 20 per cent from N150.2 million, made up of 300.5 million ordinary shares of 50 kobo each, in 2011 to N180.3 million, consisting of 360.6 million ordinary shares of 50 kobo each, in 2012. The increase was due entirely to a one-for-five bonus issue made for the 2011 business year. Shareholders’ funds meanwhile, grew by 46.5 per cent from N4.50 billion to N6.59 billion, largely due to inflow of some 37 per cent of net earnings into the reserves.

    Total assets increased slightly by 7.9 per cent from N31.11 billion to N33.56 billion. Current assets dropped by 17 per cent from N14.07 billion to N11.69 billion while long-term assets increased by 28 per cent from N17.04 billion to N21.88 billion. Total liabilities were nearly flat at N26.97 billion in 2012 as against N26.61 billion in 2011.

    The financing structure was largely stable, although increased financial leverage tempered the outlook. The proportion of equity funds to total assets improved from 14.5 per cent in 2011 to 19.6 per cent. Long-term liabilities/total assets ratio stood at 44 per cent in 2011 as against 46 per cent in 2011, while current liabilities/total assets ratio improved from 40 per cent to 37 per cent. However, the company showed increased leverage with debt-to-equity ratio of 6.5 per cent in 2012 as against 0.5 per cent in 2011.

     

    Efficiency

     

    The petroleum-marketing company obviously witnessed considerable decline in productivity and efficiency during the period, although available details were not sufficient to determine the actual unit level of productivity and overall efficiency. The ratio of total costs of business-excluding interest expenses, in relation to sales worsened to 98.1 per cent in 2012 compared with 94.2 per cent recorded in 2011, underlining further erosion in margins and returns.

     

    Profitability

     

    Mobil Oil Nigeria shows an inverse relationship between sales and profitability. While sales recorded impressive double-digit growth; profit dropped by similar rate. This rubbed off negatively on actual and underlying returns to shareholders and other stakeholders.

    Total sales peaked at N80.80 billion in 2012 as against N62.10 billion in 2011, sustaining a commendable successive growth trend. However, cost of sales outpaced sales growth with 40 per cent increase to N72.59 billion in 2012 as against N51.96 billion in 2011. This lowered gross profit by 19 from N10.14 billion to N8.21 billion. A stable total operating expense moderated the mid-line at N6.68 billion in 2012 compared with N6.52 billion in 2011. Non-core business income increased by 12 per cent from N2.55 billion to N2.85 billion. This was counterbalanced partly by 80 per cent increase in interest expense from N166 million to N299 million. Thus, profit before tax slumped to N4.1 billion as against N6 billion in previous year. After taxes, net profit for the year dwindled to N2.88 billion compared with N4.1 billion in 2011.

    Earnings analysis underlined the negative bottom-line performance. Basic earnings per share dropped from N13.58 in 2011 to N7.98 in 2012, a dip of 41 per cent. The company retained a dividend per share of N5, the same rate paid for the 2011 business year, but the 20 per cent increase occasioned by 20 per cent bonus issue for 2011 increased gross dividend from N1.50 billion to N1.80 billion. Meanwhile, net assets per share improved by 22 per cent from N14.97 to N18.28.

    Key underlying profitability and return ratios were generally lower. Gross profit margin dropped from 16.3 per cent to 10.2 per cent. Pre-tax profit margin nearly halved from 9.7 per cent to 5.0 per cent. Return on total assets dwindled from 19.3 per cent to 12.1 per cent. Return on equity halved to 43.7 per cent as against 90.8 per cent. With lower basic earnings and constant dividend, sustainable dividend outlook dimmed to 1.60 times last year as against 2.72 times in 2011.

     

    Liquidity

     

    The liquidity position of the company worsened considerably in 2012 with negative working capital and lower financing coverage for emerging financial obligations. Current ratio, which broadly indicates ability of the company to meet emerging financing needs by relating current assets to relative liabilities, slipped below generally acceptable one-for-one benchmark from 1.14 times in 2011 to 0.95 times in 2012. With reversal of positive working of N1.71 billion to –N646 million in 2012, the proportion of working capital to total sales declined from 2.8 per cent to -0.8 per cent. Debtors/creditors ratio stood at 62.1 per cent in 2012 as against 87.4 per cent in 2011.

     

    Governance and structures

     

    Mobil Oil Nigeria was incorporated as a private limited liability company in 1951 and converted to a public limited liability company in 1978. Its shares were listed on the Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary of Mobil Oil Corporation of the United States of America, which holds 60 per cent equity stake.

    With more than 200 retail outlets spread across the 36 states and three ultra-modern multi-purpose plants located in Apapa, Lagos State, Mobil Oil Nigeria is one of the dominant petroleum-marketing companies and it particularly holds distinction as the earliest petroleum-marketing company to be incorporated in Nigeria. It’s the second most capitalised quoted petroleum-marketing company.

    The board and management of the company remained stable. Mr Adetunji Oyebanji remains the Chairman and Chief Executive of the company. The combination of chairmanship and chief executive is contrary to the code of corporate governance for publicly listed companies, which requires separation of both positions. Besides, Mobil Oil Nigeria is well-regarded in terms of compliance and best practices.

     

    Analyst’s opinion

     

    The latest audited report underlined the difficult operating environment in the downstream sector but it also reflected the need for a careful consideration of the business strategy of Mobil Oil Nigeria. While the sales growth is commendable, and should be sustained, the company needs to realign its costs to optimise sales into tangible returns to shareholders. With relatively low margin and little product differentiation, protracted reform and many lingering often-negative controversies have been major constraints to Nigerian downstream operators. The year under review had started with a petroleum price crisis, which later snowballed into scandalous oil subsidy probe, which left most oil companies scampering to clear their names from the mess.

    Mobil Oil Nigeria needs to harness its vast potential and rise above the challenges. It may also need to consider additional capital to strengthen its balance sheet and reduce dependence on short-term high-interest loans.