…gets shareholders’ approval to pay dividend
RAK Unity Petroleum Company Plc is determined to achieve its strategic objectives by driving growth inorganically through a merger or acquisition; thereby enabling the company to respond competitively to the emerging changes and trends in the business operating environment.
As part of RAK Unity Petroleum Company Plc five-year business plan that commenced in January 2016, the company aims to boost sales through the production of branded lubricants and increase profit margins by investment in direct importation of Diesel (AGO).
“There are currently ongoing plans to lease four new retail stations and refurbish the old retail stations. These plans will be executed on the back of the merger or acquisition,” Edo-Abasi Bassey Ukpong, chairman, RAK Unity Petroleum Company Plc told shareholders at the company’s 15th annual general meeting held in Lagos on Thursday August 16, 2018.
He assured that going forward, with the anticipated improvement in the Nigerian economy facilitated by increasing oil production and revenue, growth in trade and investment, a stable and transparent FX market, “we will position your company to take advantage of opportunities and offer value to you.”
“To continue to grow our business, despite the tough operating environment, RAK Unity Petroleum Company Plc board has begun a strategic review process of our business to evaluate all the options open to us to significantly improve our company’s performance. Once the board has fully evaluated these options, we intend to return to you, our shareholders, to report on our new strategic direction,” Ukpong further told shareholders.
At inception, the company had as its main object, the marketing of and distribution of petroleum products, purchased from the Nigerian National Petroleum Corporation (NNPC), within Nigeria and the West Africa sub region. The products distributed by the company include Petrol (PMS), AGO, Gas (LPG) and Kerosene (DPK). The company also distributes Engine Oil, Brake Fluid and Distilled Water.
RAK Unity Petroleum Company Plc is listed on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange (NSE) and was the first indigenous petroleum company to be so listed.
Toparte Nigeria Limited currently holds 85percent of the 56,624,893 issued share capital of RAK Unity Petroleum Company Plc and a diverse group of Nigerians hold the remaining 15 percent.
Robert Igwe, a shareholder said at the meeting that “the company has good board, management and staff. One good thing in any account is when retained earnings and shareholders fund are growing. With what I see in the account, I can only tell the company to keep it up. For the dividend, we will always ask for more.”
Another shareholder Anthony Omojola said “The company revenue increase is a welcome development to us, the shareholders.”
At the annual general meeting, the shareholders of RAK Unity Petroleum Company Plc received and adopted the audited accounts of the company for the year ended December 31, 2017 together with the reports of the directors and the auditors thereon.
In the financial year ended December 31, 2017, the company grew revenue by 25.39percent to N10.37billion from N8.27billion revenue in the 2016 financial year; though profit after tax (PAT) dipped by 27.91percent from N42.09million in 2016 to N30.35million in 2017.
Earnings per share (EPS) for the review period stood at 54kobo compared to 74kobo for the 2016 financial year. Shareholders fund at the end of the 2017 financial year was N573.1million, up by 4.5percent from the 2016 balance of N548.4million.
In addition to the re-election of directors, the shareholders at the annual general meeting also approved for the Board to pay a dividend of 10kobo per share amounting to N15.9million for the financial year in review.