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Despite the harsh economy experienced in 2022, an oil and gas company, 11plc recorded a profit of N18 billion after tax which represents a growth of 200 per cent.
The Managing Director of the company Adetunji Oyebanji disclosed this in Abuja during the AGM of 11plc, noting the growth was against the N6.08 billion recorded in 2021.
He explained that Russia- Ukraine had skyrocketed the price of diesel to a record high of N600 from N420-N450, saying the price of oil in the international market also went above $120 a barrel.
He recalled that in 2022, Nigeria’s oil sector saw significant revenue leakages due to rising activities of crude oil theft that also contributed to petrol subsidy to over N3.5 billion, Oyebanji advocated for a position that gives room for a level playing ground for all operators in 2023 and beyond.
Oyebanji said, “It is with great pleasure that I welcome you to the 45th Annual General Meeting of our great company, 11Plc, which has been growing in leaps and bounds over the years. The event offers a veritable avenue to appreciate the unalloyed support and cooperation of our esteemed shareholders and other stakeholders in the 2022 financial year as well as posit an insight into the future of the company.
“I cannot but agree with our Chairman, Mr. Ramesh Kansagra that the unflinching support of our ever-reliable shareholders has been the powerhouse of our success.
“Over the past years, I have had the privilege of leading the management team in translating the Board’s vision into deliverables that have added to shareholder value. I wish to thank the Board for their exemplary leadership that has helped us move the company to its present exalted position on the corporate ladder.”
The MD added, “The Russia- Ukraine war, which is now more than a year old, has taken a toll on the Nigerian economy in many ways. The conflict caused disruptions to the global supply chains as prices of commodities such as crude oil, natural gas, aluminium, nickel, wheat, and other commodities soared to record levels, leaving markets in disarray.
“The price of a litre of diesel skyrocketed to a record high of N600, two weeks into the war, from around N420-N450, as oil prices climbed above $120 a barrel, worsening the inflation outlook in Africa’s biggest economy. Diesel prices have since risen to above N800 per litre and Nigeria has had to take a wrecking ball to its finances to keep up subsidies on petrol.
“Manufacturers, retail outlets, and small businesses that rely on diesel to power their machines have had to raise the prices of manufactured goods and services, even as consumers grapple with lower purchasing power.
“The year also had the regrettable incident of the importation of adulterated petrol which took a toll on cars and the distribution of products across the country, especially in Lagos and Abuja.
“In 2022, Nigeria’s oil sector saw significant revenue leakages due to rising activities of crude oil theft as conservative estimates put the total leakages from oil theft and petrol subsidy to over N3.5 billion by the end of 2022.
“Despite the daunting challenging environment which our company operated in the 2022 financial year, our company has continued to enjoy a cordial and seamless relationship with ExxonMobil and continues trade under the name Mobil trademark based on the agreement before its exit after the acquisition of the majority stake by NIPCO Investment. The new core investor is very bullish about Nigeria and has since stepped up its investment, subsequently raising the profile of our company as the gold standard in the hydrocarbon industry.
“We have made lots of investments in packaging to eliminate counterfeiting, especially our lubricants. The company is also working closely with the Standard Organisation of Nigeria (SON) on the issue of counterfeiting while law enforcement is assiduously working to checkmate perpetrators of this ignoble act.
“Our hospitality firm, Lagos Continental Hotel, is also making giant strides by offering excellent services to its growing customers and competing favourably with its peers in the industry. We have remained a socially responsible organization in all ramifications either in our host communities or with relevant government agencies.”
The MD however stated, “Despite the harsh operating environment in 2022, our Profit after tax also grew by 200 per cent to N18 billion in 2022 as against N6.08 billion in 2021. We are exhilarated with our performance in the year under review even though there is still room for improvement given our growing investment in human and capital resources. With the growing pedigree in all our business lines, we are upbeat about improved performance in subsequent years.
“Our greatest asset in meeting the vision of the company remains the workforce. We shall continue to place a premium on our human capital and ensure that they key into our growth trajectory. As part of efforts to improve deliverables by the workforce, we have continually trained them at various levels taking advantage of whatever human capacity development facilities are available in Nigeria. I thank my management team and the entire staff without whom; we would not have delivered this exemplary performance.
“As we approach 2023, being an election year, we would not be averse to a change in policy direction. However, we are advocating for a position that gives room for a level playing ground for all operators. What we always clamour for is to have a free market. People talk about deregulation from different perspectives but there will always be regulation at least in the areas of health, safety and product quality. However, regulation should not apply to the pricing and sourcing of products.
“We believe that a policy change might be imminent and we are very optimistic that with the investment already made by the company,11Plc is well poised to take advantage of whatever policy directives of the incoming administration, especially at the federal level.”
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