In a notice sent to the Nigerian Stock Exchange (NSE) on Wednesday, 11 Plc (formerly known as Mobil Oil Nigeria Plc) announced the reopening of its Liquefied Petroleum Gas (LPG) business. The company last operated in this segment 20 years ago.
Reasons behind the move
11 Plc attributed the volte-face to the need to tap Nigeria’s abundant gas reserves.
“We are returning to this line of business we exited 20 years ago to take advantage of the huge natural gas reserves in Nigeria.”
The company also stated that the move was part of the synergies it had obtained from its takeover by NIPCO. NIPCO acquired a 60% stake in Mobil Oil Plc from its parent company Exxon Mobil Plc in a deal valued at $301 million. The company was then renamed to 11 (pronounced double one) Plc
NIPCO then opened a Mandatory Takeover (MTO) bid in April 2017. It currently holds a 74% stake in the firm, while the rest is held by retail investors.
Details of the plan
The firm will begin sales in 14 of its outlets and then expand subsequently. In addition to investing in LPG equipment, Mobil has also expressed its willingness to train its personnel and maintain product standards.
Diversification is key
Downstream oil and gas firms have sought ways to diversify their revenue base, in the midst of slim margins on petrol. A devaluation of the Naira in the last two years and increase in global crude oil prices mean the landing cost of petrol is way higher than the current price of N145.
The government is unwilling to increase petrol prices to avoid backlash in a pre-election year. The Nigerian National Petroleum Corporation (NNPC) is thus, left as the sole importer and under-recovery (a diplomatic term for subsidy) running into trillions of Naira.
11 Plc is not alone
The expansion into other areas isn’t limited to just 11, but the downstream sector as a whole.
Forte Oil Plc in April this year, obtained the licence to distribute the Havoline line of engine oil. The company in December last year introduced its brand of solar energy solutions.
MRS Oil also appears to have begun operations in the LPG space going by its Q1 2018 results. They show the company made N5.5 million from Liquefied Petroleum Gas (LPG) sales in March 2018. There were no sales in the corresponding period of 2017 nor its full-year results.
Conoil Plc also had a trace of LPG sales in its revenue for the 12 months ended December, 2017, even though they were minuscule.
Recently released National Bureau of Statistics (NBS) LPG Price watch shows an increase in the price of filling an LPG cylinder both 5kg and 12.5kg.
11 Plc shares closed flat at N183.00 in today’s trading session on the Nigerian Stock Exchange (NSE). Year to date the stock is down 5.96%.
Q1 2018 results for 11 Plc, show revenue increased from N25.1 billion in 2017 to N45 billion in 2018. Profit before tax jumped massively from N43 million in 2017 to N4.3 billion in 2018 (due to the absence of exceptional items from last year).
Profit after tax also surged from N13 million in 2017 to N2.3 billion in 2018.
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
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