11 Plc Approves Dividend Payout Of N2.6bn
Shareholders of 11 Plc (formerly Mobil Oil Nigeria Plc) has approved the dividend payout of N2.6bn, translating to 800 kobo per share, for the financial year ended December 31, 2017.
The company‘s financial sales revenue grew to N125.26bn in 2017, up by 33 per cent from N94.11bn recorded in 2016.
Its profit dropped marginally by 1.4 per cent from N15.5bn in 2016 to N15.3bn in 2017.
The Chairman, 11 Plc, Ramesh Kansagra, was quoted in a statement as saying at the company’s 40th Annual General Meeting in Lagos the drop in the profit was as a result of the hard hurdles of operating in the industry.
he said, “As regards reduction in profitability, I would like distinguished shareholders to be aware that the cost of oil product business in Nigeria is essentially government regulated.
“We are all expecting the government to deregulate. But instead of deregulating, not only have they continued to regulate, they set the price at which we can sell some of our key products and which we can buy them. Government has not largely encouraged private enterprise to thrive in this industry; private enterprises have very little money to make in the sale of oil products.”
The Managing Director of the company, Adetunji Oyebanji, said a deregulated environment would augur well for competition, innovation, efficiency and investment in the industry.
he said, “When this is not the case, investments are stifled and that is why we will prefer a deregulated environment. Ultimately, government will be the one to decide the state of the industry, and this will be with regard to political consideration. But as an economic entity, we at 11Plc will prefer a deregulated environment where business can thrive.
“Even though investment levels have been ramped up significantly, we are laying foundations in all aspects of the business for a greater tomorrow. We are currently upgrading our Petrol Motor Spirit storage capacity with additional tankage of 15,000 metric tonnes.
“A new Aviation Turbine Kerosene tank with a 20,000MT capacity is also being constructed. We are installing three additional pipelines for the PMS, ATK and LPG. We have expanded our lubricant warehouse storage capacity by 780 square meters.”
The company urged shareholders to put measures in place to ensure smooth transfer of rights to their next of kin or relations as this would curb rampant unclaimed dividend.
