In the first quarter of 2023, less than a year after acquiring OVH Energy, the Nigerian National Petroleum Company Limited has achieved a profit of N18.4 billion.
The Punch reported that this was disclosed by the Group Managing Director of the NNPCL, Mele Kyari, 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.
“We have expanded, so it means nothing. We have a larger footprint, a stronger brand, and more market share capacity.
“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 country, some of which were inoperable petrol stations.”
He stated that they were ineffective because some 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 organic growth for 23 years, but we failed,” he continued. “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. He said that the business had changed both before and after the PIA and was now a net-profit organization that reported profits to its owners.
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.”