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N26bn debt: AP shareholders call for FG�s White Paper
Goddy Egene
Shareholders of African Petroleum Plc have appealed to the Federal Government to issue the White Paper on the recommendations of the Special Tribunal set up in 2002 to investigate the affairs of the company before and during its privatisation in 2001.
The shareholders, who made the appeal at the 25th Annual General Meeting in Calabar Cross River State, last Friday, said the release of the White Paper would boost the fortunes of the company.
Following the allegations that the former management of AP concealed debts worth N26 billion during the privatisation of the company, the Federal Government set up the Special Tribunal.
After several public hearings on the matter, the tribunal made its recommendations, which was said to be largely in favour of the new owners and management of the AP. The White Paper on the recommendations has since not been issued. Shareholders of the company said that government, in the new spirit of due process and corporate governance, should issue the white to complement the efforts of AP�s management.
National Coordinator of the Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, said that the debt burden was affecting the prospects of the petroleum products marketing company.
�The new board and management of the AP have been trying to bring back the company to its leading position in the industry but the N26 billion debt overhang has been slowing down the efforts. The Federal Government would, therefore, be doing all stakeholders in the company a great favour if the white paper is issued,� he said.
The shareholders commended the board and management of the company for improved performance in the last two years and pledged their continued support in the years ahead.
Chairman of AP, Mr. Peter Okocha, told the shareholders that the company recorded a turnover of N34.395 billion for the year ended December 31, 2003, up from N28.995 billion posted in 2002.Trading profit rose from N1.23 billion to N1.78 billion.
�This demonstrate the determination and efforts of your board and management towards building a solid foundation for the company and to place it strategically to compete favourably in the downstream sector as well as meet shareholders expectations,� Okocha said.
However, the net profit dipped from N2.156 billion in 2002 to N611 million in 2003 as there were no exceptional items last year compared with exceptional items of N4.113 billion recorded in the previous year.
He gave assurance that the company was gradually assuming its rightful place in the industry as most of the sustainable growth strategies initiated were gradually yielding results. The chairman said that the proceeds from the just concluded Rights Issue would be judiciously used to upgrade the company�s retail outlets and storage facilities.
The Punch, Monday August 02, 2004
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