MOBIL OIL: TRYING TIMES BUT....

Of course, with the unresolved issue of subsidy, petroleum marketers like Mobil Oil PLC are going through trying times but good enough, Mobil Oil retains firm grip over its affairs.
According to the figures for nine months to September released last week, Mobil Oil's turnover has shrunk by more than a quarter to N45326.4m but, good enough the company's cost of sale went down at a faster rate of 30% to N37118.4m.
But then, how trying the times were in the nine months also shines through as administration and distribution overhead grew by 18.5 % despite the turnover drop by 25.4%.
Controllable administration overhead came to N6228.3m from N5256.1m thus joining relatively less controllable pressure from 50.1 % increase in finance charges to N113.8m from N75.8m.
Apart from the higher drop in coat of sale, the saving grace for Mobil was the healthier 82.2% rise in income from other sources to N3345.5m from N1835.2m while the cost of generating it dropped by 73.8% to N18.7m from N71.3m.
Hence, the disaster that could have manifested from turnover dive amidst jump in overheads was averted somehow as Mobil Oil's profit before tax decreased by 33.5% to N5147.8m.
Of course, the good grip was discernible from the working capital     movements recorded. To boost investment property by 8.01% to N29115m, cash dropped by 91.8%; and receivables also decreased by 15.9 %. The added advantage was 75.7% drop in working capital deficit to N991.4m from N4081.2m.
IN THE END:
* It certainly will be helpful if a firmer grip results in at least overhead cost growth if a drop is not possible.
* The reality on the ground is that unless subsidy or no subsidy is put to rest, not much can change for the better for petroleum marketers like Mobil Oil.

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