Mobil Oil Nigeria Plc has declared a turnover of N54.54bn for the year ended, December 31, 2007. This represents a seven per cent increase over 2006 figure of N50. 81bn.

Presenting the company’s 2007 annual report and accounts to shareholders at the Annual General Meeting in Lagos on Monday, the Chairman/ Managing Director, MON, Mr. Olumide Onakoya, said profit after tax, however, fell 34 per cent to N1.13bn, down from the N1.71bn recorded in 2006.

He explained that the increase in turnover was largely due to increase in pump prices of petroleum products during the second quarter of 2007, while the dip in profit was attributed to the severance packages of disengaged workers, which cost it over N2bn. He said, “The dip in profit after tax is explained by one time restructuring charges of N1.97bn taken during 2007, with the separation of 69 impacted employees and an additional N34m for 14 employees who left the company voluntarily.

“The charges were partly offset by exceptional gains from sale of assets during the period.”
In spite of the dip in profit, the company declared a dividend of N4.70 per 50kobo ordinary share to be paid on June 4, 2008.

In addition, shareholders are to enjoy a bonus share of one new share for every four previously held.
Explaining the company’s reduction in fuel importation, Onakoya said this was due to the difficulties experienced in the past in redeeming claims from the Petroleum Support Fund and cost of landing in Nigeria.
Nonetheless, he said Mobil Oil “had imported some 30 metric tonnes of fuel per month, which were landed at 30 per cent more than the market price.

“With the cumbersome process of getting our claims, because we incurred about N600m on unfounded subsidies in 2006, so we decided to be cautious during 2007.”
Speaking on the operating environment, he said the company had achieved the objective of its restructuring exercise, which it embarked on in 2004.

According to him, “Our company is now even more strongly placed to consolidate its position as the most efficient and innovative downstream marketer,”