…Company’s profit after tax grew by 200 per cent to N18 billion in 2022 as against N6.08 billion in 2021.
Foremost Nigeria downstream company, 11 PLC, held its 45th Annual General Meeting (AGM) which has been growing in leaps and bounds over the years. The event offers a veritable avenue to appreciate the unalloyed support and cooperation of its esteemed shareholders and other stakeholders in the 2022 financial year as well as posit an insight into the future of the company.
Speaking at the AGM, Managing Director/CEO of 11 PLC, Adetunji Oyebanji said: “I cannot but agree with our Chairman, Mr. Ramesh Kansagra that the unflinching support of our ever-reliable shareholders has been the powerhouse of our success.
Over the past years, I have had the privilege of leading the management team in translating the Board’s vision into deliverables that have added to shareholder value. I wish to thank the Board for their exemplary leadership that has helped us move the company to its present exalted position on the corporate ladder.”
Business Environment – 2022
Oyebanji pointed out that the Russia- Ukraine war, which is now more than a year old, has taken a toll on the Nigerian economy in many ways. The conflict caused disruptions to the global supply chains as prices of commodities such as crude oil, natural gas, aluminium, nickel, wheat, and other commodities soared to record levels, leaving markets in disarray. The price of a litre of diesel skyrocketed to a record high of N600, two weeks into the war, from around N420-N450, as oil prices climbed above $120 a barrel, worsening the inflation outlook in Africa’s biggest economy. Diesel prices have since risen to above N800 per litre and Nigeria has had to take a wrecking ball to its finances to keep up subsidies on petrol.
Manufacturers, retail outlets, and small businesses that rely on diesel to power their machines have had to raise the prices of manufactured goods and services, even as consumers grapple with lower purchasing power.
The Petroleum Industry Act (PIA) also entered its second year of effectiveness and continued its long journey towards implementation. The most notable step was the creation of regulatory bodies for the petroleum upstream, midstream and downstream sectors and the official “re-launch” of The Nigerian National Petroleum Corporation as NNPC Limited in July in a high-profile ceremony led by President Muhammadu Buhari.
Oyebanji stated that the year also had the regrettable incident of the importation of adulterated petrol which took a toll on cars and the distribution of products across the country, especially in Lagos and Abuja. In 2022, Nigeria’s oil sector saw significant revenue leakages due to rising activities of crude oil theft as conservative estimates put the total leakages from oil theft and petrol subsidy to over N3.5 billion by the end of 2022.
Despite the daunting challenging environment which our company operated in the 2022 financial year, our company has continued to enjoy a cordial and seamless relationship with ExxonMobil and continues trade under the name Mobil trademark based on the agreement before its exit after the acquisition of the majority stake by NIPCO Investment. The new core investor is very bullish about Nigeria and has since stepped up its investment, subsequently raising the profile of our company as the gold standard in the hydrocarbon industry.
According to the 11 PLC MD, “We have made lots of investments in packaging to eliminate counterfeiting, especially our lubricants. The company is also working closely with the Standard Organisation of Nigeria (SON) on the issue of counterfeiting while law enforcement is assiduously working to checkmate perpetrators of this ignoble act.
Our hospitality firm, Lagos Continental Hotel, is also making giant strides by offering excellent services to its growing customers and competing favourably with its peers in the industry. We have remained a socially responsible organization in all ramifications either in our host communities or with relevant government agencies.”
Despite the harsh operating environment in 2022, the company’s profit after tax also grew by 200 per cent to N18 billion in 2022 as against N6.08 billion in 2021. “We are exhilarated with our performance in the year under review even though there is still room for improvement given our growing investment in human and capital resources. With the growing pedigree in all our business lines, we are upbeat about improved performance in subsequent years.”
Oyebanji made it known that the company’s greatest asset in meeting the vision of the company remains the workforce. 11 PLC shall continue to place a premium on its human capital and ensure that they key into the growth trajectory. As part of efforts to improve deliverables by the workforce, it has continually trained them at various levels taking advantage of whatever human capacity development facilities are available in Nigeria.
He thanked the management team and entire staff without whom he would not have delivered exemplary performance.
“As we approach 2023, being an election year, we would not be averse to a change in policy direction. However, we are advocating for a position that gives room for a level playing ground for all operators. What we always clamour for is to have a free market. People talk about deregulation from different perspectives but there will always be regulation at least in the areas of health, safety and product quality. However, regulation should not apply to the pricing and sourcing of products.
We believe that a policy change might be imminent and we are very optimistic that with the investment already made by the company, 11Plc is well poised to take advantage of whatever policy directives of the incoming administration, especially at the federal level.
Looking forward, we see an inspiring bright and fulfilling future for our company and the country in general.”
Oyebanji thanked the shareholders and other esteemed stakeholders for attending the physical AGM after a long while, no thanks to the COVID-19 pandemic.
“Our deep appreciation also goes to our customers who have stood with our brands over the years with an assurance that the confidence reposed in us shall not be taken for granted. Also worthy of thanks are my management team and the entire staff who have continued to deliver industry leading performance.”