By Goddy Egene
Japual Oil & Maritime Services Plc is to diversify into petroleum products marketing as part of its drive to increase earnings and deliver high to shareholders in the years ahead.
The company has, since its commencement of operations in 1997, engaged in the business of oil and maritime services in the upstream segment of the oil and gas industry. Its scope of operations covers the provision of offshore oilfield vessels, dredging activities in oil fields, maritime logistics pipeline construction in swamps among and other maritime services.
However, the Chairman of the Japual Oil & Maritime Services, Chief Alfred Diete-Spiff, told shareholders at the 6th Annual General Meeting (AGM) help last week in Akure, Ondo State that the company would commence business in the marketing of petroleum products on waters along the West Africa coast.
“Our core competency is in maritime and a backward integration strategy will be implemented, we shall be buying the petroleum products by ourselves and be supplying rigs and other buyers instead of waiting for our vessels to be chartered for same purposes of carrying the products,” he said.
According to him, a new subsidiary, African Energy Limited, will be formed to take care of the new business.
“We shall also perfect plans of lifting crude oil and gas for Nigeria government with our tankers that we shall be acquiring soon. This part of our business is made easy for a structure company like us by the Cabotage and local content laws that have created an enabling business environment,” he said.
He expressed confidence that the company would get many contracts in the upstream oil and gas this year and beyond, saying it is the business plan of the company in 2011 that seven sea going vessels, including oil tankers and one big dredger be added to the marine fleet of the company with earning capacity of N3 billion per annum.
Reviewing the performance of the company for the year ended December 31, 2010, Diete-Spiff said that turnover stood at N7.1 billion, up from N4.7 billion in 2009. The operating profit, he said, rose from N793 million to N1.07 billion in 2010.
The chairman assured the shareholders and other stakeholders that the company has a great future ahead.
“Without an iota of doubt, we have a very glorious future ahead of us despite all the immediate challenges. With sacrifices and determination, we shall surely make it big to the amazement of our world,” he declared.