Fuel Marketing Companies Revenue Drop

At least five of the major oil marketing companies in the country saw their total revenue drop by N331.54billion in 2020 amid the impact of the COVID-19 pandemic.

The companies saw their combined revenue for the financial year 2020 fell to N768.46billion from N1.10trillion in the previous year.

The financial statements of six major oil marketing companies as listed on the Nigerian Stock Exchange showed that four of the oil companies suffered profit declines, one posted a loss while the remaining one returned to profitability.

Revenue Analysis

Total Nigeria Plc, a subsidiary of a French oil major, Total, saw its revenue drop by 30 percent from N292.17billion to N204.72billion in 2020.

Its profit after tax declined to N2.06billion last year from N2.28billion in 2019.

11Plc, formerly known as Mobil Oil Nigeria Plc, generated revenue of N163.91billion in 2020, down from N191.68billion in the previous year.

Its profit after tax tumbled to N6.23billion from N8.88billion.

MRS Oil Nigeria Plc saw its revenue plunge to N41.98billion from N65.57billion. The company posted a loss of N2.26billon last year, compared to N1.61billion loss in 2019.

Also, Conoil’s revenue dipped by 16 percent to N117.47bilion in 2020 from N139.76billion in the previous year, while its after-tax profit fell by 23 percent to N1.52billion from N1.97billion.

The revenue of Ardova Plc, formerly Forte Oil Plc, rose to N181.66billion last year from N176.55billion in 2019. Its profit after tax fell to N2.06billion from N3.92billion.

Eterna Plc saw its revenue plunge to N58.72bn from N229.27bn. The company, however, reported a profit after tax of N941.04m last year, compared with a loss after tax of N144.29m in 2019.

However, Agusto & Co had said in August that the total revenue from the sale of petroleum products in Nigeria was expected to fall by N400bn in 2020 on the back of the impact of the COVID-19 pandemic on fuel consumption.

“Our research shows that 99 per cent of petroleum products consumed were imported as the country’s refineries operated below the installed capacities, sometimes down for months,” it said in its 2020 Oil and Gas Downstream Report.

Agusto & Co noted that the impact of the COVID-19 pandemic on economic activities in the country had resulted in a decline in the consumption of petroleum products.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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