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Mobil Oil Nigeria holds first quarter shareholders forum

Mobil Oil Nigeria (MON) on Thursday, April 28, 2016 held its scheduled shareholders forum at its Apapa office complex in Lagos. The highlights of the meeting are as follows:

  • Over 100 shareholders were present at the meeting, including members of the Board Audit Committee and a Non-Executive Director, Engr. (Mrs.) Mayen Adetiba.
  • The Chairman of the Board and Managing Director, Tunji Oyebanji, joined by Director Lubes, (Alastair MacNaughton) announced that Aba Kyari and Henry Obih have since retired from MON Board to take up higher responsibilities with Government.
  • Tunji gave detailed stewardship of  MON business for the 2015 full year and those of 1Q 2016 to the shareholders.
  • Excluding the one-time asset sale in prior year, the Profit After Tax (PAT) for 2015 at N4.87 billon vs N3.83 billion for 2014 indicates a 27% increase. These were attributed to a combination of business efficiencies, effective controls and safety operations.
  • The Chairman/MD explained to shareholders the following macro-economic factors that affected business:

             - Fuels supply import dependent (95% imports, 5% local refining)          

              -Delayed release of 2016 budget.     

              -Uncertain Government policies.

              -Higher inflation and interest rates.     

              -Flat total industry demand.

             -Increase in tariffs for imported finished lubricants.

             -Product shortages, limited forex, import financing issues

             -Delay in fuels subsidy payments

             -Supply challenges; Constraints at the Apapa Jetty

  • Stakeholders commended MON for continuing to conduct the shareholders forum as shareholders are made to feel a part of the Company.
  • A total of 9 long-drawn questions posed by shareholders on the business and environmental issues were satisfactorily answered by Tunji and Alastair. These ranged from need to pay higher dividends, synergy with EM Upstream for forex to help supplies, need for more government engagements/lobby, deregulation and local content.
  • Satisfied shareholders expressed full satisfaction with the answers provided to their enquiries and restated their full confidence in the Board, Management and Staff of MON.