NIPCO PLC BUYS 60% MOBIL OIL NIGERIA

Soon, Nipco PLC, an indigenous downstream company formed 15 years ago, will become the top petroleum products marketer in Nigeria.

This is because Mobil oil Nigeria PLC announced today that its major shareholder. ExxonMobil has decided sell its 60% holding to Nipco PLC.

According to the announcement, this followed the decision of ExxonMobil to divest and so join other major downstream international companies like Shell. Chevron. Agip and Eni that have since hands off downstream business in Nigeria.

Nothing yet is said about the amount to be paid and when it will be paid but the acquisition shoots Nipco PLC to the top of downstream business in Nigeria.

In terms of turnover Nipco is not biting more than it can chew because its 2015 turnover was N114724m compared to Mobil Oil Nigeria's (MON) N64220.9m.

But it will gain a lot from Mobil oil Nigeria's far more efficient operations. In 2015 and 2014, MON reported 17.1 and 13.7% gross profit margin respectively compared to Nipco' s 5.67 and 5.76%.

Even after all expenses had been considered Nipco PLC managed 1.76% and 2.01% profit margin in 2015 and 2014 as against MON's 10.8% in both years.

ExxonMobil is divesting 109 years after operations started in 1907 as Socony Vacuum marketing petroleum products in Nigeria.

It became known as Mobil Oil Nigeria in 1978 and also became a quoted company same year.

MON operates 3 plants in Nigeria one of which is reputed for being ultra modern .

Nipco PLC on the other hand. was formed in 2001 by Independent petroleum marketers of Nigeria and has its head office at Apapa.

It is run by a 12 member board of directors chaired by Chief Dr Bestman P Anekwe which includes a lady Mrs Grace Idowu.

There are three executive directors: the MD/CEO Venkataraman Venkatanpathy; ED finance Ramesh Virwani and ED Corporate Services Alhaji Abdulkadir Aminu.

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