Tag: total

  • 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.

     

  • Total, French Embassy offer scholarships to Nigerians

    Total Plc and the Embassy of France in Nigeria have initiated a joint scholarship scheme to sponsor the training of five Nigerians abroad every year.

    A statement issued in Abuja on Tuesday by the Manager (External Communication) of Total, Mr. Charles Ebereonwu, said the scheme was part of the company’s efforts to contribute to the development of the country’s education sector.

    It noted that the Joint Scholarship Scheme (‘TQJS’) titled:“Total E &P Nigeria Ltd. (TEPNG) /Quai d’ Orsay’’ would take effect from the 2012/2013 academic session.

    The statement, however, said the pilot stage of the scheme had commenced this year with one candidate sponsored to study international law in France.

    It stressed that the agreement for the training was signed by Mr. Guy Maurice, the Managing Director of TEPNG, and Amb. Jacques Champagne de Labriolle, the French Ambassador to Nigeria.

    The statement quoted de Labriolle as saying that the scheme was based on the need to contribute to the training of Nigerians in different fields, while commending Total for contributing to the development of the Nigerian society.

    It also quoted Maurice as saying that the initiative was a reflection of the company’s confidence in the country and a continuation of what it had been doing in the past.

    The News Agency of Nigeria says Total has been collaborating with top-rated institutions across the world, as part of its human capacity development efforts.

     

  • ‘Our anti-corruption fight is total’

    ‘Our anti-corruption fight is total’

    Text of an address given by His Excellency, President Goodluck Ebele Jonathan, gcfr, on the occasion of the 52nd Independence Day anniversary on Monday, October 1, 2012

     

    Beloved countrymen and women, on this day, fifty-two years ago, our founding fathers brought joy and hope to the hearts of our people when they won independence for our great country. Nigeria made a clean break with more than six decades of colonial rule, and emerged as a truly independent nation. That turning point was a new beginning for our nation.

    Those who witnessed the lowering of the Union Jack and the emergence of the Green White Green flag continue to relish the memory, because that ceremony was not just about the destiny of a nation, but the future of a people.

    That future is here; we are the inheritors of a great legacy that goes even much farther into the past.

    The worthy patriots who made this possible were young men and women in their twenties and thirties. They worked together to restore dignity and honour to the Nigerian people. Their resolve united a multicultural and multilingual nation of diverse peoples, with more than 250 distinct languages and ethnic groups.

    In 1960, our diversity became a source of strength, and the new leaders resolved to carry the flag of independence for the benefit of future generations. They had their differences, but they placed a greater premium on the need to come together to build a new nation.

    It is that resolve, and that glorious moment that we celebrate today. We also celebrate the patriotism of our heroes past: Dr Nnamdi Azikiwe, Sir Abubakar Tafawa Balewa, Sir Ahmadu Bello, Chief Obafemi Awolowo, Sir Michael Okpara, Chief Anthony Enahoro, Herbert Macaulay, and several others who made the case for our independence.

    We remember as always, their contributions to the making of the Nigerian nation, and the efforts of their successors since 1960. We also celebrate the unfailing optimism and resilience of Nigerians who remain proud of our national identity.

    On this special day, I call on every Nigerian to remain steadfast, because our nation is indeed making progress. I call on every Nigerian to rediscover that special spirit that enables us to triumph over every adversity as a people:

    We weathered the storm of the civil war, we have refused to be broken by sectarian crises; we have remained a strong nation. I bring to you today, a message of renewed hope and faith in the immense possibilities that lie ahead.

    Fellow citizens, I have an unshaken belief in the future of our great Country. I consider it a priority and sacred duty to continue to strengthen the bond of unity that holds our nation together and to promote and nourish the creative energies of our people. This is a central objective of our administration’s Transformation Agenda. Nigeria, I assure you, will continue to grow from strength to strength.

    Since I assumed office as President of our dear country on the 6th of May 2010, I have continued to work with our countrymen and women to enhance our nation’s growth and development.

    Our vision is encapsulated in the Transformation Agenda. We are working hard and making progress on many fronts. We have cleaned up our electoral process; our elections are now globally acclaimed to be free and fair. Nigeria is now on a higher pedestal regarding elections.

    Over the past five years, the global economy has been going through a weak and uncertain recovery. During the same period and particularly in the last two years, the Nigerian economy has done appreciably well despite the global financial crisis. Nigeria’s real Gross Domestic Product (GDP) has grown by 7.1 per cent on average.

    It is also significant that the GDP growth has been driven largely by the non-oil sector. In pursuance of the main goals of the Transformation Agenda, a number of reforms and initiatives are being pursued in key sectors of the economy with a view to consolidating the gains of the economic growth.

    Our country’s power supply situation is improving gradually. We are successfully implementing a well-integrated power sector reform programme which includes institutional arrangements to facilitate and strengthen private-sector-led power generation, transmission and distribution.

    We have also put in place a cost-reflective tariff structure that reduces the cost of power for a majority of electricity consumers. I am pleased with the feedback from across the country, of improvements in power supply.

    We are continuing to improve and stabilize on our crude production volumes; our 12-month gas supply emergency plan, put in place earlier this year, has produced more than the targeted volumes of gas for power generation. A robust Petroleum Industry Bill (PIB) has been placed before the National Assembly. Its passage into law will ensure far-reaching reforms, transparency, accountability, increased government revenue and predictability for investors in the Oil and Gas sector.

    Several government programmes and projects are creating wealth and millions of job opportunities for our youth and general population. Such programmes include: You-Win, both for the youth and for the women, Public Works, the Local Content Initiative in the Oil and Gas Sector, and the Agricultural Transformation programme.

    We have improved on our investment environment; more corporate bodies are investing in the Nigerian economy. Our Investment Climate Reform Programme has helped to attract over N6.8 trillion local and foreign direct investment commitments.

    Nigeria has become the preferred destination for investment in Africa. It is ranked first in the top 5 host economies for Foreign Direct Investment (FDI) in Africa, accounting for over 20 per cent of total FDI flows into the continent. We have streamlined bureaucratic activities at the ports to ensure greater efficiency in the handling of ports and port-related businesses. Specifically, we have drastically reduced the goods clearing period in our ports from about six weeks to about one week and under. We have an ultimate target of 48 hours.

    We have put in place, a new visa policy that makes it easier for legitimate investors to receive long stay visas. We have achieved a 24-hour timeline for registration of new businesses, leading to the registration of close to 7, 000 companies within the second quarter of 2012.

    The Manufacturers Association of Nigeria (MAN) has disclosed that, as at July 2012, 249 new members across the country had joined the Association, and that capacity utilization has also improved. The multiplier effect of this development on our job creation programme cannot be over-emphasized.

    In the last two years, we have put in place structures for an upgrade of the country’s health sector, to promote in every respect, the individual citizen’s right to quality, affordable and accessible healthcare.

    In this regard, we are devoting resources under the Subsidy Reinvestment Program (SURE-P) to reducing malaria incidents, dramatically reducing maternal and child mortality, and eradicating polio.

    Fellow Nigerians, in recent times, we have witnessed serious security challenges in parts of our country. We have taken pro-active measures to check the menace. This has included constant consultation and collaboration with our neighbours and other friendly nations on issues relating to internal and cross border security, and the sharing of information on smuggling and illegal dealing in small arms and light weapons.

    Our security agencies are constantly being strengthened and repositioned for greater efficiency. Many Nigerians have acknowledged that there has been a significant decline in the spate of security breaches.

    While expressing our condolences to the affected families, let me reiterate the commitment of this Administration to ensure the safety of lives and property of all Nigerians.

    Even as we remain focused on the issue of security, the fight against the scourge of corruption is a top priority of our Administration. We are fighting corruption in all facets of our economy, and we are succeeding. We have put an end to several decades of endemic corruption associated with fertilizer and tractor procurement and distribution. We have exposed decades of scam in the management of pensions and fuel subsidy, and ensured that the culprits are being brought to book.

    In its latest report, Transparency International (TI) noted that Nigeria is the second most improved country in the effort to curb corruption.

    We will sustain the effort in this direction with an even stronger determination to strengthen the institutions that are statutorily entrusted with the task of ending this scourge.

    I have given my commitment of non-interference in the work of the relevant agencies and I am keeping my word. What we require is the full cooperation of all tiers of government, and the public, especially civil society and the media.

    This Administration has also introduced for the first time in Nigeria’s history, a Performance Contract System for all Ministers, and other officials of government. This is to further place emphasis on performance, efficiency, and service delivery.

    Fellow Nigerians, our determined efforts on several fronts not-withstanding, our country still faces a number of challenges.

    Those challenges should not deter us. In the last few weeks, for example, many of our communities have been ravaged by floods, resulting in the loss of lives and property, and the displacement of persons.

    I want to reassure all affected Nigerians that I share in their grief, and our Administration is taking steps to address these incidents, in collaboration with the States and Local Governments.

    I have received the interim Report of the Presidential team that I set up to assess the flooding situation across the country.

    The Federal Government has taken measures to assist the affected States, while considering long term measures to check future reoccurrence.

    We must continue to work together, confidently and faithfully, to ensure that our country’s potentials are realised to the fullest; that our dreams are translated into reality; and that our goals are achieved.

    Let me reiterate that our administration is committed to the pursuit of fundamental objectives of an open society: the pursuit of freedom, security and prosperity for the Nigerian people, and the rule of law.

    In the next few days, I shall lay before the National Assembly the 2013 Federal Budget Proposal so that deliberations can commence in earnest on the key policies, programmes and projects that will mark a decisive year for our development and transformation.

    I have no doubt that by the time I address you on our next independence anniversary, many of our reform efforts would have yielded even better results.

    Over the years, several leaders have built on the foundation laid by our Founding Fathers. The baton is now in our hands. Let me assure all Nigerians that we shall not fail.

    I am confident that Nigeria will continue to be a source of pride to its citizens; to Africa and the Black Race and to humanity; a land that is known for progress, freedom, peace and the promotion of human dignity.

    May God bless the Federal Republic of Nigeria. May God bless you all.