NIPCO RAKES IN OVER N1.9B PROFIT IN 2006 FINANCIAL YEAR.

Nipco Plc, a leading petroleum marketing company in the country has announced a profit before tax of =N=1.9billion for the financial year ended 2006 representing a monumental increase of about 350% increase over that of 2005 which stood at =N=431million.

Profit after tax during the year under review also increased to =N=1,7 billion from =N=341million while turnover grew to =N=39.6 billion from =N=16.2 billion.

These figure which were contained in the recently released 2006 Annual Accounts also show a leap in the earnings per share from 44k to 182k representing over 300% increase.

Buoyed by this remarkable result, the Board of Directors has proposed a dividend of =N=1.50K per share which is an increase of 500% on the 25k dividend paid in 2005

According to the report, the sum of =N= 1.4 billion has been retained by the management to strength the company's working capital to meet future expansion programmes being put in place to further consolidate its position in the downstream sector.


Reacting to the result, the Managing Director of Nipco plc Mr.Girish Sanadhya said it is a commendable one taking into consideration the high unplanned cost occasioned by the fluctuations in global oil prices.

He noted that although the Petroleum Support Fund (PSF) introduced by the Federal Government was able to cushion on gasoline imports, that of Automated Gas Oil ( AGO) was completely borne by the company.

The MD pointed out that the company's friendly pricing policy to its partner stations made it extremely difficult to transfer fully the high cost to its esteemed marketers.

He assured shareholders that the company is poised for a better performance in current year ( 2007) as many projects that will impact favorably on the overall business of Nipco are being put in place.

Mr.Sanadhya cited the example of the multi-billionaire Liquefied Petroleum
Gas ( LPG) project which is expected to be completed this year adding that when completed it will be the biggest and most modern gas plant in Nigeria.

"We are indeed broadening our business horizon to further put smile on the
face of our shareholders, majority of whom are independent fuel marketers spread across the nooks and crannies of the country" he said.

The MD stressed that the strategies of the company shall continue to be
driven by the organization's belief concerning how it can create greater value for its customers and shareholders alike via good returns on investment and improved product supply.