RAK Unity Petroleum begins strategic review
RAK Unity Petroleum Company Plc has announced the commencement of a strategic review of its business as part of efforts to increase its market share.
The company said it was determined to achieve its strategic objectives by driving growth inorganically through a merger or acquisition, in order to respond competitively to the emerging changes and trends in the business environment.
“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,” the Chairman, RAK Unity Petroleum Company, Edo-Abasi Ukpong, said at the company’s 15th Annual General Meeting in Lagos.
He said as part of its five-year business plan that commenced in January 2016, the company aimed to boost sales through the production of branded lubricants and increase profit margins by investment in direct importation of diesel.
He said with the anticipated improvement in the Nigerian economy, facilitated by increasing oil production and revenue, growth in trade and investment, and a stable and transparent foreign exchange market, the company would be positioned to take advantage of opportunities and offer value to shareholders.
Ukpong said, “To continue to grow our business, despite the tough operating environment, RAK Unity Petroleum Company Plc’s 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.”
At the AGM, the shareholders received and adopted the audited accounts of the company for the year ended December 31, 2017.
The company grew revenue by 25.39 per cent to N10.37bn in 2017 from N8.27bn in the 2016 financial year.
Its profit after tax dropped by 27.91 per cent from N42.09m in 2016 to N30.35m in 2017.
The company’s earnings per share stood at 54 kobo, compared to 74 kobo for the 2016 financial year, while the shareholders’ fund was N573.1m at the end of the 2017, up by 4.5 per cent from N548.4m in 2016.
The shareholders approved a dividend payment of 10 kobo per share, amounting to N15.9m for the financial year in review.