The financial results for the first quarter of 2020 of most of the major fuel marketers in the country have emerged, showing losses and significant declines in profits,
Three of the seven oil marketing firms listed on the Nigerian Stock Exchange posted a total loss of N1.57bn in the three months ended March 31, 2020, while two saw their profits fall by N3.58bn, PUNCH reported.
MRS Oil Nigeria Plc reported the biggest loss in the quarter under review, as its loss rose by 45.21 percent to N1.06bn from N730.64m in the same period a year ago.
Its quarterly revenue rose year-on-year to N17.87bn from N13.51bn, according to its unaudited financial statements obtained from the NSE.
A subsidiary of French oil major, Total, Total Nigeria Plc, posted a loss of N163.22m for the quarter ended March 31, 2020, down from the N474.09m loss recorded in the same period a year ago.
Its unaudited financial statement showed that its revenue dropped to N70.24bn in the period under review from N77.42bn in the same period in 2019.
Total is the only international oil company still operating in the downstream sector of the Nigerian oil and gas industry.
Eterna Plc made a loss of N265.89m in Q1 2020, compared to a profit of N530.09m it recorded in the same period last year.
The firm’s revenue plunged to N17.49bn in the period under review from N60.47bn in Q1 2019.
Ardova Plc, formerly Forte Oil Plc, saw its profit after tax tumbled by 85 percent for the three months ended March 31, 2020.
The firm said its after-tax profit dipped to N497.44m in the quarter from N3.32bn in the same period a year ago.
Its unaudited interim financial statements, however, showed that quarterly revenue increased year-on-year to N52.05bn from N42.56bn.
11Plc, formerly known as Mobil Oil Nigeria Plc, saw its profit after tax plunged by 37 percent for the three months ended March 31, 2020.
Its after-tax profit fell to N1.28bn in the quarter under review from N2.04bn in the same period a year ago, while profit before tax dipped to N1.91bn from N3.02bn.
“If you, as an investor, had invested in one of the quoted companies on the NSE involved in the downstream oil sector, your investment over 10 years would have turned negative,” the Chairman, Major Oil Markers Association of Nigeria, Mr. Adetunji Oyebanji, said during the recent Nigeria Petroleum Downstream Consultative Summit held online.
According to him, many of the players, particularly depot owners, have had their businesses foreclosed and their assets are with the Asset Management Corporation of Nigeria, leading to job losses.
Oyebanji noted that over the last 10 to 15 years, virtually all the multinational players involved in the downstream had divested and exited the downstream oil sector in Nigeria.
“Even some of the entities that bought over those assets have themselves divested. If all these don’t tell you that there needs to be some radical change in the industry, I don’t know what else tells the story beyond all these things,” he said.
He said the sector, like every other aspect of the nation’s economy, needed significant investment, said Oyebanji, who is the managing director/chief executive officer of 11Plc.