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NNPCL makes N18.4billion profit in first quarter, controls 30% market now, says Kyari

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Group Chief Executive Officer of the Nigeria National Petroleum Company Limited, Mele Kyari said on Friday, September 15, that the NNPC Retails Limited made a profit of N18.4 billion in the first quarter of 2023.

He also said that the company now has over 900 fuel stations spread across the country, while controlling about 30 percent of the market in the downstream sector of the petroleum industry.

Kyari spoke just as the Speaker of the House of Representatives, Tajudeen Abbas assured that the House would not witch-hunt any agency of government, but would work with other arms of government to reposition and rebuild the country.

The NNPC boss, who spoke at the resumed investigative hearing of the ad-hoc committee on the acquisition of OVH Energy by NNPCL, said the organisation did nothing wrong in the acquisition, saying it was purely a business decision that has begun to yield results less than one year after it was done.

He said: “This company came into existence as a result of the passage of the Petroleum Industries Act which included the creation of a commercial company oil company that will work for all.

“You also decide that the shareholders of this company will be the federation meaning that the overall 200 million Nigerians are shareholders in this company. The PIA also mandates this company to be the energy guarantor for this country. So, it is not an option for this company to do otherwise.

“It is part of the law that we should protect the national interest in a way to guarantee energy security.  It is very clear that there is a huge relationship between energy security and national security anywhere in the world. Countries go to war to ensure energy security.

“It is on the basis of this, and to discharge our responsibility as proscribed by the law that we do need to have the capacity to have control over the downstream sector of the economy. We started NNPC Retail Limited in the year 2000 and until the period of acquiring the OVH chain, we were not able to grow organically.

“We only had 48 stations that we owned and a mirage of companies that are affiliates all over the country, some of which were not functional fuel stations. They could not serve the purpose because there were dealers who could not pay for the cost of the products and we had locations where we could not guarantee either the quantity or quality of the products sold.

“We failed to grow organically for 23 years. The only way to bridge that gap was to do something strategic and this is very difficult in our industry. You have to acquire other people’s assets if you want to grow to achieve the objective of the PIA and grow this company to the business we want it to be.

Speaking on the gains recorded from the acquisition, he said “Five years back, the NNPC Retails Limited’s highest profit came in 2021 when we made N6. 593 billion profit.

He said: “But in the first quarter of 2023, after the acquisition of OVH, we made a profit of N18.4 billion. It is nothing because we have expanded, we have more footprint, have a better brand, and greater capacity in terms of our market share.

“We were struggling to reach 15 to 20 percent in 23 years.  But we are hitting 30 percent of market share in less than one year.  This is the dramatic change that has happened to this company as a result of this acquisition. We are proud of this acquisition.”