Daily Independent Online.
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Monday, July 26, 2004.
Mobil to spend N1.2 billion on four new filling
stations
By Charles Okonji
Senior Business Correspondent, Lagos
Mobil Oil Nigeria (MON) Plc will, between now and the
end of this year, spend about N1.215 billion (about $9 million) for building
four new filling stations in Lagos and upgrading old ones to improve the
quality of services in the stations.
The company’s Chairman and Managing Director,
Mr. Olumide Onakoya, stated this during the company’s Annual General
Meeting (AGM) that his primary vision for MON was to run the company with the
highest standard of business practice worldwide.
Onakoya said: “My primary vision for the
company is to run this business to the global standard. I do not believe there
is anything like Nigerian standard. I may be the first Nigerian to become the
chairman and managing director of Mobil, but my vision is that I will certainly
not be the last.”
He pointed out that the company would not venture
into refinery for now because of the cost, which is estimated at $2 billion,
stating that refinery project would require huge investment and commitment of
shareholders’ funds.
His words: “To build a new refinery, you are
talking of about $2 billion. It is an investment decision we take very seriously.
Before we do such a thing, we have to look at the environment, what is the
downstream regulation like and what are the pricing and margin like?
“Those are the issues we will look at and at
the appropriate time, when those things become right in Nigeria, we can venture
into the refinery business,” he added.
On last year’s financial performance, MON
recorded a turnover of N37.1 billion and profit after tax of N1.5 billion,
representing an increase of 18 per cent and 207 per cent respectively, compared
with the 2002 figure.
The year 2003, he explained, had a challenging
operating environment, as the Gross Domestic Product (GDP) rose by 3.3 per
cent, slightly lower than 2002, while the inflation rate fell to a 12.9 per
cent.
The growth in the company’s turnover, he said,
was a reflection of price increases in both fuels and lubricants since
MON’s fuel sales volume actually declined marginally and the lubricant
sales volume recorded a growth rate of six per cent.
Onakoya disclosed that the total industry supply of
fuels recorded a negative growth rate of seven per cent, but MON recorded an
increase in market share, an indication that the company performed better than
the industry.
He further said: “Last year was also a good
year for our insecticide business, which continues to grow and we remain
optimistic of its future. With government focus on agriculture and local
manufacturing, continued investment in the palm oil processing industry has
resulted in strong sales of hexane, a solvent used in the extraction
process.”
