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FOCUS: How this oil company went from popular to ‘unfamiliar’

It is not all the time that companies decide to change their names. And whenever they do, it is usually for important reasons…



about 11 Plc, 11 Plc. announces board meeting and closed period

It is not all the time that companies decide to change their names. And whenever they do, it is usually for important reasons, which could range from the need to reflect change in ownership, or just an urgent need to rebrand. Whatever the reason, a corporate name change can be a tricky and costly process; tricky in the sense that customers may not easily relate to the name change (just as it is the case with 11 Plc), and costly because lots of money is usually expended advertising the new identity.

While the benefits of changing a company’s name may often be limitless, the reverse could sometimes be the case. And even though this is not the case with our company focus, the truth remains that 11 Plc went from having a really popular name, to answering one that many people are barely familiar with. Why did this happen?

On this week’s Nairametrics company focus, we will be answering the question above, as well as discussing other important issues that will definitely interest you about the company. As you should already know, this column avails potential investors the opportunity to know more about some of the not-so-popular companies that are listed on the Nigerian Stock Exchange. And since 11 Plc has suddenly gone from popular to unfamiliar, we might as well refresh our minds about what we already knew about it.

Who is 11 Plc?

11 Plc is a Lagos-based company which engages in the distribution/merchandising of refined petroleum products. The company’s business model entails the operation of a chain of filling stations across Nigeria, where products such as kerosene, diesel, liquefied natural gas, and premium motor spirit (PMS) are sold. The company is also the sole distributor of Mobil lubricant oils, passenger car oils, brake fluid, gear oils, and all such related heavy duty oils which are sold in Nigeria by its agents. Lastly, its aviation fuel is sold at the Murtala Muhammed Airport.

Besides its core business interest, 11 Plc incorporates a property/rental service, which specialises in the leasing of offices and apartments in Lagos.

About its incorporation and listing on the Nigerian Stock Exchange

According to available records, the company’s recent name change to 11 Plc is not its first. It began operation in Nigeria as far back as 1907, and was known as Socony Vacuum Oil Company. However, the company didn’t become incorporated until until 1951.

Following its incorporation as a limited liability company in 1951, the company’s legal name was changed to Mobil Oil Nigeria Limited. It then remained a limited liability company for twenty seven years before its status was converted to a publicly quoted company following its listing on the Nigerian Stock Exchange in 1991. Today, the company’s market capitalisation stands at N66, 349,528,208.00, with shares outstanding totalling 360,595,262.

A look at the company’s target market

11 Plc targets a wide range of market audiences, including regular car owners in Nigeria, industrial users of petroleum products, and even airline companies operating in the country’s aviation sector. Needless to mention the fact that millions of cars are driven across various Nigerian roads on a daily basis. These cars require all kinds of petroleum products in order to function properly. So, to take advantage of the opportunity presented by this huge market, 11 Plc competes with other players in the petroleum products sub-sector of the Nigerian oil and gas industry.


Here are the company’s competitors

There are currently about seven other oil and gas companies operating in the same sub-sector as 11 Plc. These companies include:

  • MRS Oil Nigeria Plc Forte Oil Plc
  • Eterna PlcEterna Plc
  • Conoil Plc
  • Oando Plc
  • RakUnity Petroleum Company Plc, and
  • Total Nigeria Plc

A brief comparison of the latest financial statements disclosed by these companies, shows that 11 Plc is definitely one of the top most profitable of the lot. What this shows is that name change or not, the company is doing well.

The company’s ownership structure and second name change

Sometime in the first quarter of 2017, ExxonMobile Plc divested 60% of its shareholdings in Mobil Oil Nigeria Plc. The shares were purchased by NIPCO Investment Limited, a subsidiary of NIPCO Plc, which prior to this time already owned some 14.18% worth of shares in Mobile Oil Nigeria Plc. Following the acquisition of the shares, NIPCO Plc’s shares in the company increased to 74.18%, thereby making it a majority shareholder. Other investors currently share the remaining 25.82%.

Based on the foregoing, it can be seen that the change in ownership necessitated the company’s latest name change. The company, in August 2017, informed the NSE and the investing public of the namw change. Interestingly, it decided to retain “Mobil” as the trading name across its filling stations. This is probably because the new stakeholders foresaw the confusion that kind of name might subject the public to.

Below are members of the company’s board of directors:

  1. Ramesh Kansagra: Chairman of Board
  2. Adetunji Oyebanji: Managing Director
  3. Ramesh Virwani: Chief Operating Officer
  4. Rishi Kansagra: Director
  5. Thomas Dietz: Director
  6. Alhaji Aminu Abdukadir: Executive Director

In conclusion, 11 Plc has remained profitable over the years despite the occasional challenges typically associated with doing business in Nigeria. Key extracts from the company’s latest financial disclosure for Q3 2018 shows that it recorded a revenue of N125 billion compared to N88.2 billion generated in the same period in 2017. Profit after tax for Q3 2018 stood at N7.8 billion, compared to N4.5 billion in Q3 2017.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Airtel Nigeria announces appointment of Surendran as new Chief Executive Officer

Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new MD/CEO with effect from August 1, 2021.



Like MTN, is Airtel Nigeria considering listing?

Telecommunications giant, Airtel Nigeria, has announced the appointment of Mr C. Surendran as the new Managing Director and Chief Executive Officer with effect from August 1, 2021.

Surendran would be replacing the outgoing Managing Director and Chief Executive of Airtel Nigeria, Olusegun Ogunsanya, who has been elevated to the position of Chief Executive Officer of Airtel Africa Plc with effect from October 1, 2021.

According to a report from the News Agency of Nigeria, this disclosure is contained in a statement issued by Airtel on Wednesday, May 5, 2021, in Lagos.

READ: Airtel Africa signs new $500 million loan with Bank of America, HSBC, others

The statement says that Surendran would also be appointed to the Executive Committee (ExCo) as Regional Operating Director, reporting to the CEO of Airtel Africa plc, and onto the Board of Airtel Networks (Nigeria) Limited.

Airtel in its statement said, “Surendran has been with Bharti Airtel since 2003 and has contributed immensely in various roles across customer experience, sales and business operations.

He was the Chief Executive Officer of Karnataka, which is the largest circle in Airtel India, with over one billion dollars in revenue.

Surendran delivered an exceptional performance with significant movement in Revenue Market Share (RMS) over the last few years, currently at 54 percent. He has over 30 years of business experience, including 15 years at Xerox.’’


Airtel said that Surendran would transition into his new role from June 1, 2021, and spend the time onboarding into the business until July 31, 2021.

READ: Meet the latest billionaires on the Nigerian Stock Exchange

In case you missed it

It can be recalled that a few days ago, Airtel Africa Plc, a leading provider of telecommunications and mobile money services in Nigeria and 13 other countries, announced the appointment of Mr Olusegun Ogunsanya as the new Chief Executive Officer, following the notice of retirement given by the current Managing Director/Chief Executive Officer, Raghunath Mandava, to the Board.

In the notification sent by Airtel Africa to the Nigerian Exchange, Ogunsanya is expected to join the board of Airtel Africa with effect from October 1, 2021.

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Our First Bank loan is being serviced, reduced by 30% in 2 years – Honeywell Group

The credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.



Billionaire watch: Oba Otudeko’s stakes in Firstbank and Honeywell are worth N10.3 billion

The Honeywell Group has said that its loan with First Bank is being serviced as the conglomerate had reduced the facility by 30% in the last two and half years.

This was disclosed by the Group via a statement issued on Sunday and seen by Nairametrics.

According to the statement, the company and the bank have had a professional business relationship since 1975, which preceded the group’s investment in the bank over a decade later.

According to the Honeywell Group, the credit facilities accessed from First Bank were granted after due negotiations, with the necessary documentation and in line with regulatory policies and industry standards.

The Group further explained that following agreed terms, its facilities are adequately secured with First Bank with collaterals in place at over 170% of forced sales value and 230% at open market value.

It stated, “In 2015, First Bank under the directive of the Central Bank of Nigeria, drew our attention to a 2004 circular (BSD/9/2004) which requires that insider related facilities must not exceed 10% of paid-up share capital.

Based on this directive we subsequently entered negotiations with the bank to agree on an appropriate repayment structure and the final negotiated position was duly approved by the CBN.

In addition to the above, First Bank, on the directive of CBN, requested additional security in the form of FBN Holdings Plc shares held by the Chairman of Honeywell Group, Dr Oba Otudeko citing a 2001 circular. This was duly provided through an authorisation to place a lien on the shares.”

Honeywell Group has continued to meet all its obligations on its facilities with the bank according to agreed terms and has reduced its exposure by nearly 30% in 2.5 years. The facilities were charged at market rate and the bank continues to earn significant interest therefrom.”

What you should know

  • Nairametrics had reported when the Central Bank of Nigeria directed Honeywell to fully repay its obligations to First Bank within 48 hours, warning that failure to do so would cause the CBN to take regulatory measures against the insider borrower and the bank.
  • The Chairman of Honeywell Group, Oba Otudeko, also served as Chairman of FBN Holdings Plc until he was asked by the apex bank to go along with other directors on Thursday.
  • The apex bank had noted in a letter last Wednesday that First Bank had yet to comply with regulatory directives on divesting its interest in Honeywell despite several reminders.
  • Also, the CBN asked First Bank to forward evidence involving the divestment of interest in Honeywell Flour Mills and Bharti Airtel Nigeria Ltd within 90 days.

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