11Plc, formerly Mobil Oil, reports 37% profit drop

11Plc, one of the major oil marketing companies in Nigeria, saw its profit after tax plunge by 37 percent for the three months ended March 31, 2020.

The company’s after-tax profit fell to N1.28 billion in the quarter under review from N2.04bn in the same period a year ago. 

Its profit before tax dipped to N1.91 billion from N3.02 billion, according to its unaudited financial statement obtained by Markets Reporters from the Nigerian Stock Exchange.

11Plc, formerly Mobil Oil Nigeria Plc, grew its total assets to N97.23 billion as of March 2020 from N91.20 billion in December 2019, while its total liabilities increased to N56.26 billion from N51.52 billion.

The company noted in the report that the COVID-19 crisis continued to impact all businesses, with the effect expected to be more pronounced in the future. 

It said, “At this stage, it is not possible to determine the financial impact of COVID-19 on our company given the lack of visibility on the end date of the pandemic or on how long it would continue to impact the Nigerian economy. 

“The company has a strong balance sheet, and the board and management are focusing on efforts to mitigate the impact on our business.”

The United States-based ExxonMobil sold its 60 per cent stake in Mobil Oil Nigeria in 2017 to NIPCO Investment Limited, a wholly owned subsidiary of Nipco Plc in 2017.

As at March 31, 2020, Nipco shareholding in 11Plc is 77.81 percent while other investors behold 22.19 percent, according to the financial statement.

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