By Yemie Adeoye

The Nigerian Independent Petroleum Company, NIPCO Plc, has announced a turnover of N56.3 billion for the financial year ended December 2010, a 17 percent increase compared with the N47.9 billion recorded in 2009.

This was contained in a financial statement presented and approved by the company’s shareholders at the 7th Annual General Meeting held in Abuja during the week.

The investors also approved the recommendation of the Board of Directors of a dividend payout of N2.75k per ordinary share to shareholders, whose names appear in the company’s register of members at the close of business on 6th May, 2011.

The statement said that Nipco Plc’s profit after tax increased from N1.723 billion in 2009 to N1.859billion in 2010, due to the massive dispensing of about 1.2 billion of litres of petroleum products representing 100 percent to customers.

The company also recorded profit before tax of N2.216bn in 2010 as against N2.057bn in 2009, an increase of over 7 percent.

The statement which was presented by the company’s Chairman Chief Bestman Anekwe, affirmed that in spite of the harsh operating environment in 2010 financial year, the company was able to improve on its dividend from N422.2 million in 2009 to N516.088 million in 2010, representing a dividend yield of 275 kobo and 250 kobo respectively.

The Chairman however commended the Federal Government for embarking on the reforms in the nation‘s oil and gas industry through the Petroleum Industry Bill, PIB, currently before the national Assembly for enactment.

He said that the reform process is expected to lead to full deregulation of the sector, and would in no small measure create a level playing ground for all stakeholders and subsequently improve returns on investments in the nation‘s hydro-carbon resources.

Anekwe also explained that despite the numerous challenges in the 2010 financial year, the uncommon marketing strategies and purposeful management prudence, coupled with the enormous support of the workforce contributed immensely to the moderate performance of the company during the period.

He, however, expressed delight over the improved relationship with the Nigerian National Petroleum Corporation, NNPC and its subsidiaries, such as the Pipelines and Products Marketing Company, PPMC, and the Nigerian Gas Company, NGC.

The Board Chairman noted that, notwithstanding, the improved product allocation from PPMC, the company had put in place measures to augment supplies through direct importation of deregulated products on a regular basis in 2011.

Anekwe posited that the future of the company in 2011 and beyond was very bright, but added that the plethora of challenges plaguing the sector needed to be addressed squarely in the overall interest of all stakeholders. “Our focus in this new dispensation is to build a formidable petroleum company that will fit better into the energy reforms of the government while delivering greater value to both our customers and the shareholders,” he noted.

“The company is working out a conducive environment that would facilitate acquisition of more retail outlets across the country to further promote its brand and offer excellent service delivery to its clientele,” Anekwe added.