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Business News

Mobil targets bigger share of aviation fuel market

11 Plc (formerly known as Mobil Oil Nigeria) is targeting a bigger share of the Aviation fuel market in 2019.

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

11 Plc (formerly known as Mobil Oil Nigeria) recently released its full year results for 2018. Revenue increased from  N125 billion in 2017 to N164 billion in 2018, up 31%.

While profit before tax was flat, profit after tax rose by 24% to N9.3 billion in 2018, up from N7.5 billion in 2017. Note that this change is largely due to the absence of an exceptional item recorded in 2017.  

Furthermore, the company declared a final dividend of N8.25 per shareup 3% from the N8 dividend declared in 2017. This also amounts to a payout ratio of 31.8% of its earnings.  

 In an excerpt from the Chairman’s statement, the firm gave an update on progress made since it re-entered the aviation fuel market last year.  

“We are pleased to inform you of our entry into the sale and marketing of Aviation Turbine Kerosene (ATK) at our Ground Aviation Terminal, Lagos, in the fourth quarter of the year under review (2018). Currently, we service some major international airlines with their ATK requirements.”

The company also disclosed its plans to cover an even bigger part of the market.

“Plans for expansion to other major airport locations across the country will follow soon, as we seek to penetrate the local ATK market.”

11 Plc had, in November last year, announced the resumption of ATK sales in partnership with Air BP. The firm stated that it would construct a new 20 million litre aviation jet fuel (ATK) tank,  as well as lay new ATK pipelines linking the company’s facility at Apapa with the Apapa Jetty. 

 Total in the Bullseye?: Existing players in the space could see their market sharewhittled down. 11, being a major petroleum marketerhas access to funding lines that would enable it to push large volumes into the market, and sell on credit.   While 11 Plc did not give a breakdown of its Aviation sales, dominant players like Total could witness a drop in their market share.  

Total Nigeria Plc, another major marketer, made N20.3 billion from aviation sales as at the nine months ended September 2018. This marked an increase from the N12.5 billion recorded in the comparative period of 2017.   MRS Oil Plc had a drop in revenue from ATK. It dropped from N7.4 billion in 2017 to N4.9 billion in 2018.    

Revving the engine: The move into new markets has been a key move by the firm since NIPCO took a majority stake in 2017.   In June last year, it announced the reopening of its Liquefied Petroleum Gas (LPG) business. The company last operated in this segment 20 years ago.   

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

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Spotlight Stories

Tip Jar, Twitter’s new giveaway feature that lets users send money to you

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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US Elections: Twitter, Facebook suspend several news accounts

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

READ: Facebook is creating an audio chat product similar to Clubhouse

You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

Hotflex

READ: Does YouTube stand a chance against TikTok?

Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

Twitter has tested several features and more will be rolled out soon.

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Business

Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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