about 11 Plc

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:

Deal book 300 x 250
  • 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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.