NIPCO Plc has announced plans to go into production of Liquefied Petroleum Gas (LPG) in new investments surge.
Sanjay Teotia, managing director of the company, who disclosed this on the sidelines of NIPCO’S 15th Annual general meeting (AGM) in Abuja, pointed out that conscious efforts are in place in preparation for the take-off of the LPG production.
“Your company is thinking of venturing into LPG production against the background of the nation’s richness in natural gas. In the near future, we are going into its production,” he said.
The strategy to diversify and grow the streams of income through the expansion of the company’s oil and gas business, Teotia said, would gain more momentum.
Currently, in LPG storage space, NIPCO, the company’s helmsman said, “we not only possess the largest but the most active as well as the supplier of choice.
“Our shareholders will continue to smile with good returns on their investment year in year out but with a caveat that challenges in the sector are addressed headlong by concerned stakeholders”, he asserted
Stating that the company does not “envisage job loss or lay off,” the NIPCO’S boss expressed “hope to improve our employment status with opportunities for more vibrant and experienced personnel to give added impetus to our excellent service delivery phenomenon.
“Our growth plans for the future would be hinged on focused implementation of our strategic intent of exceeding customer’s expectations in all our line of businesses.”
In pursuit of NIPCO’S resolve to be relevant in the industry, Teotia said; “our backward integration blueprint would be further intensified with a view to making it consequential on our balance sheet in 2019.
“We will also remain focused on delivering on our strategic objectives of being a company of first choice in the industry with the ultimate aim of generating more values for our shareholders and stakeholders in general.”
In a review of operation in the 2018 financial year, the NIPCO boss said that fifteen years of operation in a stormy industry such as ours is great achievement worthy of applause.
He noted that the period under review is the preceding year before the 2019 General elections was permeated with cautious investment thus having a general toll on the economy.
“The expected passage of the Petroleum Industry Governance bill did not materialize with the industry still in want of a robust policy capable of putting the industry on a solid footing for the future.
“Job security is becoming a mirage in the sector, a feat that might have a bleak impact on the economy.
“The sector had remained regulated leaving the National Oil Company as the sole importer of Premium Motor Spirit [PMS], popularly called petrol,” he said.
With the continued regulation of the sector as against deregulation, operators, Teotia said, had no control on margins as turnover is shooting up with no concomitant improvement on profit
“Your company was, however, able to drive its growth plans through expansion of some of its core business activities and a backward integration of its business lines.
He pointed out that the company has put more investment in the white and gas business to boost more revenue and deliver significant returns to you all adding “we were able to optimize cost without necessarily sacrificing quality service delivery.”
According to him, NIPCO sustained its steady growth through strategic implementation of the promoter’s intent hinged on exploring opportunities in the hydrocarbon industry with a view to exceeding customer’s expectations.
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