NNPCL reports a N18.4 billion Q1 profit, Following the acquisition of OVH Less than a year after purchasing OVH Energy, The Nigerian National Petroleum Company Limited generated a profit of N18.4 billion in the first quarter of 2023.
This was disclosed by Mele Kyari, Group Managing Director of the NNPCL, on Friday in Abuja at the reopened investigation hearing of the House of Representatives ad hoc committee.
He said, “Five years ago, the NNPC Retails Limited’s greatest profit was N6.59 billion in 2021. However, following the purchase of OVH, we saw a N18.4 billion profit in the first quarter of 2023. Given that we have expanded, it is meaningless. We have a larger footprint, a stronger brand, and more market share capacity.
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“We founded NNPC Retail Limited in 2000, but up until the time when we bought the OVH chain, we were unable to expand organically. We only owned 48 stations, but we had a phantom network of affiliated businesses spread around the nation, some of which were inoperable gas stations. They were ineffective because certain dealers were unable to cover the costs of the goods, and we had some sites where we were unable to control the quantity or caliber of the goods sold.
We tried to grow naturally for 23 years, but we failed. The only way to close that gap is to take a strategic approach, which is really challenging in our business. If you wish to expand and build this company into the kind of enterprise we envision, you must buy the assets of other individuals.
The company, according to Kyari, had been operating at a loss for many years. According to him, the company underwent changes both before and after the PIA and is now a net profit corporation that declares profits for its shareholders.
He declared, “We saw the chance to add this asset to our portfolio and meet the legal criteria. We currently have 30% of the market under our control thanks to this acquisition. No business will make the announcement in front of the public.
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