Despite the challenges in the downstream sector in the 2017 financial year, NIPCO Plc has expressed optimism about meaningful growth opportunities in petroleum products marketing to improve investor’s returns.
Managing Director of the company, Mr. Sanjay Teotia, according to a statement, said this on the sidelines of the company’s 14th Annual General Meeting (AGM) in Abuja. He maintained that in spite of the numerous challenges, the company exhibited utmost capacity to surmount the difficult times.
NIPCO’s turnover for the 2017 financial year grew by 35 per cent from N170 billion in 2016 to N207 billion, Profit after tax rose from N1.8billlion in 2016 to N2.1 billion in 2017, according to the statement. The board recommended a cash dividend of 300kobo amounting to total dividend payout of N563 million, which was approved by the shareholders.
The MD noted that the main challenge with the downstream sector of the Nigerian oil and gas industry stemmed from the lack of marketing margins for PMS due to pricing surge in the international market and the commitment of government to the populace by maintaining a price cap across the nation for petrol.
Source: Energy Mix Report