RAK Unity Petroleum earns N6.7bn revenue, plans expansion

RAK Unity Petroleum Plc has reported gross revenue of N6.7billion for the year ended March 31, 2016 amid plans to expand the company’s operations to enhance performance, efficiency and sustainability. Listed on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange, RAK Unity’s Board said it has its sights on delivering value to its customers and shareholders through cost and operational efficiencies. Edo-Abasi Bassey Ukponghairman, RAK Unity Plc said the company braved the slump in the sector to record Profit Before Tax (PBT) of N80.8 million, noting that RAK’s management had since unveiled a growth strategy that would involve continuous investment and partnerships to deliver value to all its stakeholders.

According to him, the drop in the price of crude oil, the inability of marketers to source for foreign exchange from the Central Bank of Nigeria (CBN), the continuous fluctuations of the Naira as well as instability in the price of refined petroleum products are critical challenges that are influencing business outcomes in the sector. “In spite of these challenges, we hope to continue to support our projected retail expansion, targeting a minimum of 3 retail stations annually, by injecting the necessary capital to drive this expansion across the six (6) geo-political zones of the country, whilst taking into consideration site visibility and traffic,” he said. Ukpong said the company’s earnings would be reinvested to ensure sustainable growth, expansion and stability of the company.

He said RAK Unity would partner with third party vendors for the importation of petroleum products as this would ensure constant availability of product at competitive price hence boosting cash and credit sales. The RAK Unity chair further explained that the company expects additional volumes and revenue increase from lubricant sales via retail outlet and commercial sale. This would be achieved through increased efforts to partner with Lubricant blending plant owners for the production of branded lubricant at competitive price. “We hope to accelerate growth in bulk sales of products by focusing on target companies in industries that are relatively inelastic to their consumption of petroleum products,” he added. Commenting on the fluctuations in the sector, he said the company would continue to sustain its business and growth by continuously responding swiftly to unfolding trends in the sector and ensuring that it maintains a strong customer base.

“With our team of vibrant staff and strategic partners, we are confident of delivering long-term value through our key pillars: Quality and Quantity Assurance; Innovative approach to meeting customers demand; Great customer service and Consistent on-time product delivery.