Shareholders of Mobil Oil Nigeria Plc have approved a proposed N7.20 per shares as the company declared a dividend of N2.5billion as dividend.
The approval took place during the company’s 38th Annual General Meeting held at Muson Centre in Lagos Wednesday.
The proposed dividend of N7.20 per share is an increase of 9.09 per cent, when compared to N6.60 paid in 2014.
The elated shareholder who could not hold back their joy over this development however demanded for higher dividend.
The company’s revenue declined from N79.58 billion in 2014 to N64.22 billion in the review period of 2015; representing a 19.30 percent decline from 2014 figures.
Pre-tax profit for the period dropped by 18.23 percent to N6.91 billion from N8.45 billion recorded for 2014 financial year.
Similarly, profit after tax (PAT) declined 24 percent to N4.87 billion from N6.40 billion posted in the same period.
Addressing shareholders at the AGM, Adetunji Oyebanjo, Chairman/Managing Director of Mobil Oil Nigeria said that delayed reforms in the downstream petroleum industry sector remain a concern for operators as business continues to be challenged by products supply, margins on regulated products and the operating environment.
He stated that anticipated reforms in the downstream petroleum industry sector, spurred the company to double its tank farm capacity of 10,000 metric tons.
“Property rental income increased following the completion of the upgrade of Mobil Court. Some upgrades are also being made in Mobil House –Office building and these are expected to be completed in 2016.
“In addition to the investments in Mobil Court and Mobil House, we completed and commissioned a new gasoline tank in 2015. This has increased our storage capacity and provides greater flexibility for our terminal operations.
“Investments in the retail chain have comprised tank and pump replacements as well as some service station facelifts. In addition, significant investments were made by our dealers in dealer-owned and operated sites.
“In accordance with our tradition of delivering shareholder returns that are competitive and superior in long-term value, the Board is pleased to recommend for approval a dividend of 720 kobo per 50 kobo share, subject to deduction of withholding taxes at applicable rates,” Oyebanji said.
However, the shareholders of the company were unanimous in their demand for increase in the dividend allocated to them based on the performance of the company.
“We expect that rather than a slight percentage increase, the results of the company should determine how much dividend is paid,” said Moses Ogundeji, a shareholder.
Oyebanjo assured that them that their views are duly noted and would be discussed with the board. He however stated that the fall in crude oil prices in 2015 impacted government revenues and the availability of foreign exchange also took its toll on the company’s operations.
While the company said it has no plans for building a refinery due to the huge cost involved in the project – over $9billion – according to Oyebanji, he however assured that Mobil Oil Nigeria will continue to focus on growing sales of non-regulated products and on enhancing value of their property investments.
FRANK UZUEGBUNAM & ISAAC ANYAOGU
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
