By Michael Eboh
JAPAUL Oil and Maritime Services Plc, has reassured its shareholders of its improved performance and impressive returns on their investments, despite the challenges posed by insecurity and restiveness in the Niger-Delta region.
According to a statement by the Managing Director of the company, Mr.Â Paul Jegede, the company has signed various contracts in Nigeria for projects worth more than N12.8 billion ($80 million), noting, however, that the restiveness in the Niger- Delta region has temporarily affected the execution of the contracts.
He disclosed that the company recently signed two contracts worth N9.28 billion ($58 million) in two major oil producing regions of the world – Abu Dhabi and Oman.
He noted that the contract in Abu Dhabi, worth N4.8 billion ($30 million) while the one in Oman, worth N4.48 billion ($28 million), is a demonstration of the companyâ€™s drive to ensure its profitability and also a reflection of its ability to perform against all odds.
In addition, he noted that its vessels outside the country, particularly at Indian Ocean, are expected to be engaged on long term contracts as from the months of October, adding that this will increase its revenue base by an additional N1.28 billion ($8 million) within the next couple of months.
He said, â€œAll these are a pointer to our decision to diversify our revenue base in order to improve our income base, which already is yielding positive dividend. To this end, we have no excuse not to continue to give dividend to our shareholders in years ahead.
â€œThe significant improvement in our performance in the last couple of days can be attributed to the flexible and focus driven management and staff of the company, coupled with the quality support from the board and the believe of the shareholders in the managementâ€™s ability to deliver good return on investment.â€
The company recently announced a 50.48 per cent growth in its Profit After Tax (PAT) in its second quarter ended, 30th June, 2009 financial statements.
Its after tax profit stood at N704.97 million compared to N468.49 million recorded in the comparable period of 2008.Its turnover rose by 73.83 per cent from N1.49 billion recorded in 2008 to N2.59 billion in the period under review, it recorded a direct expenses of N980.69 million from N565.6 million in 2008, its gross profit appreciated by 73.54 per cent from N921.58 million to N1.60 billion in the period under review, while its operating expenses stood at N723.63 million from N335.98 million in 2008.The companyâ€™s profit before tax appreciated by 50.48 per cent, from N585.61 million in second quarter 2008 to N881.21 million in 2009, while its profit after tax stood at N704.97 million from N468.49 million in 2008.